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FOREWORD. 


The  purpose  of  this  book  is  to  furnish  in  concise  and  con- 
venient form  for  reference  such  information  as  is  likely  to  be  re- 
quired by  speakers,  writers  and  others  participating  in  the  dis- 
cussions of  the  presidential  campaign  of  1912.  However,  well-ad- 
vised, the  speaker  or  writer  may  be  upon  the  topics  of  the  cam- 
paign, he  will  require  for  reference  many  facts  and  figures  which 
can  only  be  had  by  consulting  numerous  publications,  many  of 
them  so  bulky  as  to  be  practicable  for  desk  use  only.  This  work 
is  intended  to  present  in  concise  and  portable  form  the  more  im- 
portant of  these  facts  and  figures,  so  condensed  and  arranged  as 
to  be  convenient  for  ready  reference  in  the  field,  on  the  stump, 
upon  the  train,  or  wherever  they  may  be  desired.  The  arrange- 
ment of  the  book  will  be  apparent  upon  an  examination  of  the 
table  of  contents  which  occupies  the  opening  page.  Each  of 
the  subjects  likely  to  require  discussion  is  treated  under  its 
proper  title,  followed  by  such  statistical  statements  as  may 
be  required  for  further  reference.  A  copious  index  will  enable 
those  utilizing  the  volume  readily  to  find  the  detailed  facts  which 
they  may  require  for  instant  reference.  The  statistical  and- 
historical  statements  presented  in  the  discussions  have  been  care- 
fully verified  and  the  authority,  in  the  more  important  statements, 
cited,  while  the  tables  are  in  most  cases  from  official  publica- 
tions of  the  Government  or  from  accepted  authorities. 

It  has  been  deemed  proper  to  present  as  fully  as  practicable 
information  upon  subjects  likely  to  receive  especial  attention, 
and  the  space  allotted  to  the  chapters  on  Control  of  Corpora- 
tions, Wages,  Prices  and  Tariff  have  been  adjusted  to  the 
possible  requirements  of  those  desiring  information  upon  these 
subjects.  The  constant  but  unfounded  assertions  that  cost  of 
living  has  advanced  more  than  wages  justifies  the  detailed  dis- 
cussion of  this  subject  which  will  be  found  in  the  chapter  en- 
titled "Labor,  Wages  and  Prices,"  and  especial  'attention  is 
called  to  the  information  there  presented  which  fully  disproves 
these  assertions. 

Extracts  from  the  "Congressional   Record" 

Two  additional  volumes  have  been  published  by  the  National 
Committee.  One  of  these,  entitled  "Pages  from  f  le  Congressional 
Record,"  presents  in  full  a  large  number  of  spee«  hes  made  in  the 
present  Congress  by  leading  Republicans  upon  topics  likely  to 
be  of  interest  in  the  present  campaign.  The  other,  entitled  "Ex- 
tracts from  the  Congressional  Record"  contains  brief  extracts 
from  speeches  delivered  in  Congress  upon  subjects  likely  to  be 
discussed  in  the  present  campaign.  It  contains  the  best  utter- 
ances of  the  party  leaders  during  its  entire  history  upon  the 
great  subjects  likely  to  be  considered  in  this  campaign.  Pro- 
tection, Regulation  of  Corporations,  Prices,  Republican  Pros- 
perity, Democratic  Adversity,  the  Workingman,  the  Fanner,  the 
Soldier,  Rural  Free  Delivery,  the  Post  Office  Investigation.  Pan- 
ama, the  Navy.  and  the  Record-  of  President  Taft  are  discussed 
in  these  concise  extracts' from  the  public  utterances  of  party  lead- 
ers past  and  present.  The  volume  may  readily  be  used  as  a 
pocket  companion,  in  the  field  or  on  the  train,  and  will  prove  a 
valuable  supplementary   work   in   connection   with   this   text-book. 

Both  volumes  may  be  obtained  upon  application  to  the  Na- 
tional Committee. 

2         * 


SPEECH 

.  OF 

WILLIAM  HOWARD   TAFT 

ACCEPTING  THE   NOMINATION  FOR  THE  PRESIDENCY 
BY  THE  REPUBLICAN  NATIONAL  CONVENTION. 


Delivered  at  Washington,  D.  C,  August  J,  J9J2. 


Mb.  Eoot  and  Gentlemen  of  the  Notification  Committee  : — I 
accept  the  nomination  which  you  tender.  I  do  so  with  profound 
gratitude  to  the  Republican  Party,  which  has  thus  honored  me 
twice.  I  accept  it  as  an  approval  of  what  I  have  done  under  its 
mandate,  and  as  an  expression  of  confidence  that  in  a  second  ad- 
ministration I  will  serve  the  public  well.  The  issue  presented  to 
the  convention,  over  which  your  chairman  presided  with  such  a 
just  and  even  hand,  made  a  crisis  in  the  party's  life.  A  faction 
sought  to  force  the  party  to  violate  a  valuable  and  time-honored 
national  tradition  by  entrusting  the  power  of  the  presidency  for 
more  than  two  terms  to  one  man,  and  that  man,  one  whose 
recently  avowed  political  views  would  have  committed  the  party 
to  radical  proposals  involving  dangerous  changes  in  our  present 
constitutional  form  of  representative  government  and  our  inde- 
pendent judiciary. 

This  occasion  is  appropriate  for  the  expression  of  profound 
gratitude  at  the  victory  for  the  right  which  was  won  at  Chicago. 
By  that  victory,  the  Republican  Party  was  saved  for  future  use- 
fulness. It  has  been  the  party  through  which  substantially  all 
the  progress  and  development  in  our  country's  history  in  the 
last  fifty  years  has  been  finally  effected.  It  carried  the  country 
through  the  war  which  saved  the  Union,  and  through  the  green- 
back and  silver  crazes  to  a  sound  gold  basis,  which  saved  the 
country's  honor  and  credit.  It  fought  the  Spanish  war  and 
successfully  solved  the  new  problems  of  our  island  possessions. 
It  met  the  incidental  evils  of  the  enormous  trade  expansion  and 
extended  combinations  of  capital  from  1897  until  now  by  a  suc- 
cessful crusade  against  the  attempt  of  concentrated  wealth  to 
control  the  country's  politics  and  its  trade.  It  enacted  regula- 
tory legislation  to  make  the  railroads  the  servants  and  not  the 
masters  of  the  people.  It  has  enforced  the  anti-trust  laws 
until  those  who  were  not  content  with  anything  but  monopolistic 
control  of  various  branches  of  industry  are  now  acquiescent  in 
any  plan  which  shall  give  them  scope  for  legitimate  expansion 
and  assure  them  immunity  from  reckles-  .    jsecution. 

.358037 


4  SPEECH  OF  HON.  W.  H.  TAFT. 

The  Republican  Party  has  been  alive  to  the  modern  change 
in  the  view  of  the  duty  of  government  toward  the  people.  Time 
was  when  the  least  government  was  thought  the  best,  and  the 
policy  which  left  all  to  the  individual,  unmolested  and  una;ded 
by  government,  was  deemed  the  wisest.  Now  the  duty  of  gov- 
ernment by  positive  law  to  further  equality  of  opportunity  in 
respect  of  the  weaker  classes  in  their  dealings  with  the  stronger 
and  more  powerful  is  clearly  recognized.  It  is  in  this  direction 
that  real  progress  toward  the  greater  human  happiness  is  being 
made.  It  has  been  suggested  that  under  our  Constitution,  such 
tendency  to  so-called  paternalism  was  impossible.  Nothing  is 
further  from  the  fact.  The  power  of  the  Federal  Government 
to  tax  and  expend  for  the  general  welfare  has  long  been  exer- 
cised, and  the  admiration  one  feels  for  our  Constitution  is  in-* 
creased  when  we  perceive  how  readily  that  instrument  lends 
itself  to  wider  governmental  functions  in  the  promotion  of  the 
comfort  of  the  people. 

The  list  of  legislative  enactments  for  the  uplifting  of  those 
of  our  people  suffering  a  disadvantage  in  their  social  and  eco- 
nomic relation  enacted  by  the  Republican  Party  in  this  and 
previous  administrations  is  a  long  one,  and  shows  the  party 
sensitive  to  the  needs  of  the  people  under  the  new  view  of  gov- 
ernmental  responsibility. 

Thus  there  was  the  pure-food  law  and  the  meat-inspection 
law  to  hold  those  who  dealt  with  the  food  of  millions  to  a  strict 
accountability  for  its  healthful   condition. 

The  frightful  loss  of  life  and  limb  to  railway  employees  in 
times  past  has  now  been  greatly  reduced  by  statutes  requiring 
safety  appliances  and  proper  inspection,  of  which  two  important 
ones  were  passed  in  this  administration. 

The  dreadful  mining  disasters  in  which  thousands  of  miners 
met  their  death  have  led  to  a  Federal  mining  bureau  and  gen- 
erous appropriations  to  further  discovery  of  methods  for  re- 
ducing explosions  and  other  dangers  in  mining. 

The  statistics  as  to  infant  mortality  and  as  to  the  too  early 
employment  of  children  in  factories  have  prompted  the  creation 
of  a  children's  bureau,  by  which  the  whole  public  can  be  made 
aware  of  actual  conditions  in  the  States  and  the  best  methods 
of  reforming  them  for  the  saving  and  betterment  of  the  coming1 
generation. 

The  passage  of  time  has  brought  the  burdens  and  helplessness 
of  old  age  to  many  of  those  veterans  of  the  Civil  War  who  ex- 
posed their  lives  in  the  supreme  struggle  to  save  the  Nation,  and 
recognizing  this,  Congress  has  added  to  previous  provision  which 
patriotic  gratitude  had  prompted,  a  substantial  allowance,  which 
may  be  properly  characterized  as  an  old  men's  pension. 

By  the  white-slave  act  we  have  sought  to  save  unfortunates 


SPEECH  OP  HON.  W.  H.  TAFT. 

from  their  own  degradation,  and  have  forbidden  the  use  or 
interstate   commerce  in  promoting  vice. 

In  the  making  of  the  contract  of  employment  between  a  rail- 
way employee  and  the  company,  the  two  do  not  stand  on  an 
equality,  and  the  terms  of  the  contract  which  the  common  law 
implied  were  unfair  to  the  employee.  Congress,  in  the  exercise 
of  its  control  over  interstate  commerce,  has  re-formed  the  con- 
tract to  be  implied  and  has  made  it  more  favorable  to  the  em- 
ployee. Indeed,  a  more  radical  bill,  which  I  fully  approve,  has 
passed  the  Senate  and  is  now  pending  in  the  House  which  re- 
quires interstate  railways  in  effect  to  insure  the  lives  of  their 
employees  and  to  make  provision  for  prompt  settlement  of  the 
amount  due  under  the  law  after  death  or  injury  has  occurred. 

By  the  railroad  legislation  of  this  administration,  shippers 
have  been  placed  much  nearer  an  equality  with  the  railroads 
whose  lines  they  use,  than  ever  before.  Kates  can  not  be  in- 
creased except  after  the  Interstate  Commerce  Commission  shall 
hold  the  increase  reasonable.  Orders  against  railways  which 
under  previous  acts  might  be  stayed  by  judicial  injunction  that 
involved  a  delay  of  two  years  can  .now  be  examined  and  finally 
passed  on  by  the  Commerce  Court  in  about  six  months.  Patrons 
of  express,  telegraph,  and  telephone  companies  may  now  secure 
reasonable  rates  by  complaint  to  the  commission. 

Many  millions  are  spent  annually  by  the  Department  of 
Agriculture  to  investigate  the  best  methods  of  treating  the 
soil,  carrying  on  agriculture  and  publishing  the  results.  We 
are  now  looking  into  the  question  of  the  best  system  for  secur- 
ing such  credit  for  the  farmer  at  reasonable  rates  as  will  en- 
able him  better  to  equip  his  farm  and  to  follow  the  rules  of 
good  farming,  which  we  must  encourage.  Our  platform,  I  am 
glad  to  say,  specifies  this  as  a  reform  to  which  the  party  is 
pledged.  The  necessity  for  stimulating  greater  production  of 
foodstuffs  per  acre  becomes  imperative  as  the  vacant  lands  avail- 
able for  the  extension  of  acreage  are  filling  up  and  the  supply  of 
foodstuffs  as  compared  with  the  demand  is  growing  less  each 
year. 

Congress  has  sought  to  encourage  the  movement  toward  eight 
hours  a  day  for  all  manual  labor  by  the  recent  enactment  of 
a  new  law  on  the  subject  more  stringent  in  its  provisions,  re- 
garding works  on  Government  contracts. 

One  of  the  great  defects  in  our  present  system  of  government 
is  the  delay  and  expense  of  litigation,  which  of  course  works 
against  the  poor  litigant.  The  Supreme  Court  is  now  engaged 
in  a  revision  of  the  equity  rules  to  minimize  delay  and  expense 
as  to  half  our  Federal  litigation.  The  workmen's  compensation 
act  will  relieve  our  courts  of  law  of  a  very  heavy  part  of  the 
present  dockets  on  the  law  side  of  the  court  and  give  the  court 
more  opportunity  to  speed  the  remaining  causes.     The  last  Con- 


6  SPEECH  OF  HON.  W.   H.  TAFT. 

gross  codified  the  Federal  court  provisions,  and  we  may  look  for, 
and  should  insist  epon,  a  reform  in  the  law  procedure  so  as  to 
promote  dispatch  of  business  and  reduction  in  costs. 

We  hare  adopted  in  this  administration,  after  very  consid- 
erable opposition,  the  postal  savings  banks,  which  work  directly 
in  the  promotion  of  thrift  among-  the  people.  By  reason  of  the 
payment  of  only  2  per  cent  interest  on  deposits  they  do  not 
compete  with  the  savings  banks.  But  they  do  attract  those  who 
fear  banks  and  are  unwilling  to  trust  their  funds  except  to  a 
governmental  agency.  Experience,  however,  leads  depositors  to 
a  knowledge  of  the  importance  of  interest,  and  then  seeking  a 
higher  rate  they  transfer  their  accounts  to  the  savings  banks. 
In  this  way  the  savings-bank  deposits,  instead  of  being  reduced, 
are  increased,  and  there  is  thus  available  a  much  larger  fund  for 
general  investment. 

For  some  years  the  administration  has  been  recommending  the 
parcels  post,  and  now  I  am  glad  to  say  a  measure  will  prob- 
ably be  adopted  by  Congress  authorizing  the  Government  to  avail 
itself  of  the  existing  machinery  of  the  Post  Office  Department 
to  carry  parcels  at  a  reasonably  low  rate,  so  that  the  commu- 
nication between  the  city  and  the  country  in  ordinary  merchan- 
dise will  be  proportionately  as  low  priced  and  as  prompt  as  the 
newspaper  and  letter  delivery  through  the  post  offices  now.  This 
must  contribute  greatly  to  reducing  the  cost  and  increasing  the 
comfort  of  living. 

We  are  considering  the  changing  needs  of  the  people  in  the 
disposition  of  our  public  lands  and  their  conservation.  As  those 
lands  owned  by  the  Government  and  useful  for  agricultural  pur- 
poses which  remain  are  as  a  whole  less  desirable  as  homesteads 
than  those  which  have  been  already  settled,  it  has  been  properly 
thought  wise  to  reduce  the  time  for  perfecting  a  homestead 
claim  from  five  years  to  three,  and  this  whether  on  land  within 
the  rain  area  or  in  those  arid  tracts  within  the  reclamation 
districts. 

Again,  a  bill  has  passed  the  Senate  and  is  likely  to  pass  the 
House  which  will  not  compel  the  settlers  on  reclamation  lands 
to  wait  ten  years  and  until  full  payment  of  what  they  owe  the 
Government  before  they  receive  a  title,  but  which  gives  a  title 
after  three  years  with  a  first  Government  lien. 

On  the  other  hand,  the  withdrawal  of  coal  lands,  phosphate 
lands,  and  oil  lands  and  water-power  sites  is  still  maintained 
until  Congress  shall  provide,  on  the  principles  of  proper  con- 
servation, a  system  of  disposition  which  will  attract  capital  on 
the  one  hand  and  retain  sufficient  control  by  the  Government  on 
the  other  to  prevent  the  evil  of  concentrating  absolute  ownership 
in  a  few  persons  of  those  sources  for  the  production  of  neces- 
sities. 


SPEECH  OF  HON.   W.    H.   TAPT. 


POPULAR   UNREST. 


In  the  work  of  rousing  the  people  to  the  danger  that  threat- 
ened our  civilization  from  the  abuses  of  concentrated  wealth 
and  the  power  it  was  likely  to  exercise,  the  public  imagination 
was  wrought  upon  and  a  reign  of  sensational  journalism  and  un- 
just and  unprincipled  muckraking  has  followed,  in  which  much 
injustice  has  been  done  to  honest  men.  Demagogues  have  seized 
the  opportunity  further  to  inflame  the  public  mind  and  have 
sought  to  turn  the  peculiar  conditions  to  their  advantage. 

We  are  living  in  an  age  in  which  by  exaggeration  of  the  de- 
fects of  our  present  condition,  by  false  charges  of  responsibility 
for  it  against  individuals  and  classes,  by  holding  up  to  the  fever- 
ish imagination  of  the  less  fortunate  and  the  discontented  the 
possibilities  of  a  millennium,  a  condition  of  popular  unrest  has 
been  produced.  New  parties  are  being  formed,  with  the  avowed 
purpose  of  satisfying  this  unrest  by  promising  a  panacea.  In 
so  far  as  inequality  of  condition  can  be  lessened  and  equality 
of  opportunity  can  be  promoted  by  improvement  of  our  educa- 
tional system,  the  betterment  of  the  laws  to  insure  the  quick 
administration  of  justice,  and  by  the  prevention  of  the  acquisi- 
tion of  privilege  without  just  compensation,  in  so  far  as  the 
adoption  of  the  legislation  above  recited  and  laws  of  a  similar 
character  may  aid  the  less  fortunate  in  their  struggle  with 
the  hardships  of  life,  all  are  in  sympathy  with  a  continued  effort 
to  remedy  injustice  and  to  aid  the  weak,  and  I  venture  to  say 
that  there  is  no  national  administration  in  which  more  real 
steps  of  such  progress  have  been  taken  than  in  the  present  one. 
But  in  so  far  as  the  propaganda  for  the  satisfaction  of  unrest 
involves  the  promise  of  a  millennium,  a  condition  in  which  the 
rich  are  to  be  made  reasonably  poor  and  the  poor  reasonably 
rich  by  law,  we  are  chasing  a  phantom ;  we  are  holding  out  to 
those  whose  unrest  we  fear  a  prospect  and  a  dream,  a  vision 
of  the  impossible. 

In  the  ultimate  analysis,  I  fear,  the  equal  opportunity  which 
is  sought  by  many  of  those  who  proclaim  the  coming  of  so-called 
social  justice  involves  a  forced  division  of  property,  and  that 
means  socialism.  In  the  abuses  of  the  last  two  decades  it  is 
true  that  ill-gotten  wealth  has  been  concentrated  in  some  un- 
deserving hands,  and  if  it  were  possible  to  redistribute  it  on 
any  equitable  principle  to  those  from  whom  it  was  taken  with- 
out adequate  or  proper  compensation,  it  would  be  a  good  result 
to  bring  about.  But  this  is  obviously  impossible  and  imprac- 
ticable. All  that  can  "be  done  is  to  treat  this  as  one  incidental 
evil  of  a  great  expansive  movement  in  the  material  progress  of 
the  world  and  to  make  sure  that  there  will  be  no  recurrence  of 
such  evil.     In  this  regard  we  have  made  great  progress  and  re- 


8  SPEECH  OF  HON.  W.  H.  TAFT. 

form,  as  in  respect  to  secret  rebates  in  railways,  the  improper 
conferring-  of  public  franchises,  and  the  immunity  of  monopoliz- 
ing trusts  and  combinations.  The  misfortunes  of  ordinary  busi- 
ness, the  division  of  the  estates  of  wealthy  men  at  their  death, 
the  chance  of  speculation  which  undue  good  fortune  seems 
often  to  stimulate,  operating  as  causes  through  a  generation, 
will  do  much  to  divide  up  such  large  fortunes.  It  is  far  better 
to  await  the  diminution  of  this  evil  by  natural  causes  than  to 
attempt  what  would  soon  take  on  the  aspect  of  confiscation  or 
to  abolish  the  principle  and  institution  of  private  property  and 
to  change  to  socialism.  Socialism  involves  the  taking  away 
of  the  motive  for  acquisition,  saving,  energy,  and  enterprise, 
and  a  futile  attempt  by  committees  to  apportion  the  rewards 
due  for  productive  labor.  It  means  stagnation  and  retrogres- 
sion. It  destroys  the  mainspring  of  human  action  that  has 
carried  the  world  on  and  upward  for  2,000  years. 

I  do  not  say  that  the  two  gentlemen  who  now  lead,  one  the 
Democratic  Party  and  the  other  the  former  Republicans  who 
haveAleft  their  party,  in  their  attacks  upon  existing  conditions, 
and  in  their  attempt  to  satisfjr  the  popular  unrest  by  promises 
of  remedies,  are  consciously  embracing  socialism.  The  truth 
is  that  they  do  not  offer  any  definite  legislation  or  policy  by 
which  the  happy  conditions  they  promise  are  to  be  brought 
about,  but  if  their  promises  mean  anything,  they  lead  directly 
toward  the  appropriation  of  what  belongs  to  one  man,  to  an- 
other. The  truth  is,  my  friends,  both  those  who  have  left  the 
Eepublican  Party  under  the  inspiration  of  their  present  leader, 
and  our  old  opponents,  the  Democrats,  under  their  candidate, 
are  going  in  a  direction  they  do  not  definitely  know,  toward  an 
end  they  can  not  definitely  describe,  with  but  one  chief  and 
clear  object,  and  that  is  of  acquiring  power  for  their  party  by 
popular  support  through  the  promise  of  a  change  for  the  better. 
What  they  clamor  for  is  a  change.  They  ask  for  a  change  in 
Government  so  that  the  Government  may  be  restored  to  the 
people,  as  if  this  had  not  been  a  people's  Government  since  the 
beginning  of  the  Constitution.  I  have  the  fullest  sympathy 
with  every  reform  in  governmental  and  election  machinery 
which  shall  facilitate  the  expression  of  the  popular  will,  as  the 
short  ballot  and  the  reduction  in  the  number  of  elective  offices 
to  make  it  possible.  But  these  gentlemen  propose  to  reform 
the  Government,  whose  present  defects,  if  any,  are  due  to  the 
failure  of  the  people  to  devote  as  much  time  as  is  necessary  to 
their  political  duties,  by  requiring  a  political  activity  by  the 
people  three  times  that  which  thus  far  the  people  have  been 
willing  to  assume ;  and  thus  their  remedies,  instead  of  exciting 
the  people  to  further  interest  and  activity  in  the  Government, 


SPEECH  OF  HON.  W.  H.  TAFT.  9 

will  tire  them  into  such  an  indifference  as  still  further  to  remand 
control  of  public  affairs  to  a  minority. 

But  after  we  have  changed  all  the  governmental  machinery 
so  as  to  permit  instantaneous  expression  of  the  people  in  con- 
stitutional amendments,  in  statutes,  and  in  recall  of  public 
agents,  what  then?  Votes  are  not  bread,  constitutional  amend- 
ments are  not  work,  referendums  do  not  pay  rent  or  furnish 
houses,  recalls  do  not  furnish  clothing,  initiatives  do  not  supply 
employment  or  relieve  inequalities  of  condition  or  of  oppor- 
tunity. We  still  ought  to  have  set  before  us  the  definite  plans 
to  bring  on  complete  equality  of  opportunity  and  to  abolish 
hardship  and  evil  for  humanity.  We  listen  for  them  in  vain. 
-  Instead  of  giving  us  the  benefit  of  any  specific  remedies  for 
the  hardships  and  evils  of  society  they  point  out,  they  follow 
their  urgent  appeals  for  closer  association  of  the  people  in  legis- 
lation by  an  attempt  to  cultivate  the  hostility  of  the  people  to 
the  courts  and  to  represent  them  as  in  some  form  uphold- 
ing injustice  and  obstructing  the  popular  will.  Attempts 
are  made  to  take  away  all  those  safeguards  for  maintaining  the 
independence  of  the  judiciary  which  are  so  carefully  framed 
in  our  Constitution.  These  attempts  find  expression  in  the 
policy,  on  the  one  hand,  of  the  recall  of  judges,  a  system  under 
which  a  judge  whose  decision  in  one  case  may  temporarily  dis- 
please the  electorate  is  to  be  deprived  at  once  of  his  office  by 
a  popular  vote,  a  pernicious  system  embodied  in  the  Arizona 
constitution  and  which  the  Democrats  of  the  House  and  Senate 
refused  to  condemn  as  the  initial  policy  of  a  new  State.  The 
same  spirit  manifested  itself  in  the  vote  by  Democratic  Senators 
on  the  proposition,  first,  to  abolish  the  Commerce  Court,  and, 
second,  to  abolish  judges  by  mere  act  of  repeal,  although  under 
the  Constitution  their  terms  are  for  life,  on  no  ground  except 
that  they  did  not  like  some  of  the  court's  recent  decisions. 
Another  form  of  hostility  to  the  judiciary  is  shown  in  the 
grotesque  proposition  by  the  leader  of  former  Eepublicans  who 
have  left  their  party,  for  a  recall  of  decisions,  so  that  a  deci- 
sion on  a  point  of  constitutional  law,  having  been  rendered  by 
the  highest  court  capable  of  rendering  it,  shall  then  be  sub- 
mitted to  popular  vote  to  determine  whether  it  ought  to  be 
sustained.  Again,  the  Democratic  party  in  Congress  and  con- 
vention shows  its  desire  to  weaken  the  courts  by  forbidding  the 
use  of  the  writ  of  injunction  to  protect  a  lawful  business  against 
the  destructive  effect  of  a  secondary  boycott  and  by  interposing 
a  jury  in  contempt  proceedings  brought  to  enforce  the  court's 
order  and  decrees.  These  provisions  are  really  class  legislation 
designed  to  secure  immunity  for  lawlessness  in  labor  disputes 
on  the  part  of  the  laborers,  but  operating  much  more  widely 
to  paralyze  the  arm  of  the  court  in  cases  which  do  not  involve 


10  SPEECH  OF  HON.  W.  H.  TAFT. 

labor  disputes  at  all.  The  hostility  to  the  judiciary  and  the 
measures  to  take  away  its  power  and  its  independence  consti- 
tute the  chief  definite  policy  that  can  be  fairly  attributed  to 
that  class  of  statesmen  and  reformers  whose  control  the  Re- 
publican Party  escaped  at  Chicago  and  to  whom  the  Democratic 
Party  yielded  at  Baltimore. 

The  Republican  Party  stands  for  none  of  these  innovations. 
It  refuses  to  make  changes  simply  for  the  purpose  of  making  a 
change,  and  pultivating  popular  hope  that  in  the  change  some- 
thing beneficial,  undefined,  will  take  place.  It  does  not  believe 
that  human  nature  has  changed.  It  still  believes  it  is  possible 
in  this  world  that  the  fruits  of  energy,  courage,  enterprise,  at- 
tention to  duty,  hard  work,  thrift,  providence,  restraint  of  appe- 
tite and  of  passions  will  continue  to  have  their  reward  under 
our  present  system,  and  that  laziness,  lack  of  attention,  lack 
of  industry,  the  yielding  to  appetite  and  passion,  carelessness, 
dishonesty,  and  disloyalty  will  ultimately  find  their  own  pun- 
ishment in  the  world  here.  We  do  not  deny  that  there  are  ex- 
ceptions, and  that  seeming  fortune  follows  wickedness  and  mis- 
fortune virtue,  but,  on  the  whole,  we  are  optimists  and  believe 
that  the  rule  is  the  other  way.  We  do  not  know  any  way  to 
avoid  human  injustice  except  to  perfect  our  laws  for  administer- 
ing justice,  to  develop  the  morality  of  the  individual,  to  give  direct 
supervision  and  aid  to  those  who  are,  or  are  likely  to  be,  op- 
pressed, and  to  give  as  full  scope  as  possible  to  individual  effort 
and  its  rewards.  Wherever  we  can  see  that  a  statute  which 
does  not  deprive  any  person  or  class  of  what  is  his  is  going  to 
help  many  people,  we  are  in  favor  of  it.  We  favor  the  greatest 
good  to  the  greatest  number,  but  we  do  not  believe  that  this 
can  be  accomplished  by  minimizing  the  rewards  of  individual 
effort,  or  by  infringing  or  destroying  the  right  of  property, 
which,  next  to  the  right  of  liberty,  has  been  and  is  the  greatest 
civilizing  institution  in  history.  In  other  words,  the  Republican 
Party  believes  in  progress  along  the  lines  upon  which  we  have 
attained  progress  already.  We  do  not  believe  that  we  can  reach 
a  millennium  by  a  sudden  change  in  all  our  existing  institutions. 
We  believe  that  we  have  made  progress  from  the  beginning 
until  now,  and  that  the  progress  is  to  continue  into  the  far 
future ;  that  it  is  reasonable  progress  that  experience  has  shown 
to  be  really  useful  and  helpful,  and  from  which  there  is  no  re- 
action to  something  worse. 

The  Republican  Party  stands  for  the  Constitution  as  it  is, 
with  such  amendments  adopted  according  to  its  provisions  as 
new  conditions  thoroughly  understood  may  require.  We  believe 
that  it  has  stood  the  test  of  time,  and  that  there  have  been  dis- 
closed really  no  serious  defects  in  its  operation. 

It  is  said  this  is  not  an  issue  in  the  campaign.     It  seems  to 


SPEECH  OP  HON.  W.  H.  TAPT.  1 1 

me  it  is  the  supreme  issue.  The  Democratic  Party  and  the  former 
Republicans  who  have  left  their  party  are  neither  of  them  to  be 
trusted  on  this  subject,  as  I  have  shown.  The  Republican  Party 
is  the  nucleus  of  that  public  opinion  which  favors  constant 
progress  and  development  along  safe  and  sane  lines  and  under 
the  Constitution  as  we  have  had  it  for  more  than  one  hundred 
years,  and  which  believes  in  the  maintenance  of  an  independent 
judiciary  as  the  keystone  of  our  liberties  and  the  balance  wheel- 
by  which  the  whole  governmental  machinery  is  kept  within  the 
original  plan. 

WHAT   THE    ADMINISTRATION    HAS    DONE. 

The  normal  and  logical  question  which  ought  to  be  asked  and 
answered  in  determining  whether  an  administration  should  be 
continued  in  power  is,  How  has  the  Government  been  adminis- 
tered? Has  it  been  economical  and  efficient?  Has  it  aided  or 
obstructed  business  prosperity?  Has  it  made  for  progress  in" 
bettering  the  condition  of  the  people  and  especially  of  the  wage 
earner?  Ought  its  general  policies  to  approve  themselves  to 
the  people? 

During  this  administration  we  have  given  special  attention  to 
the  machinery  of  government  with  a  view  to  increasing  its  effi- 
ciency and  reducing  its  cost.  For  20  years  there  has  been  a 
continuous  expansion  in  every  direction  of  the  governmental 
functions  and  a  necessary  increase  in  the  civil  and  military 
servants  by  which  these  functions  are  performed.  The  expendi- 
tures of  the  Government  have  normally  increased  from  year  to 
year  on  an  average  of  nearly  4  per  cent.  There  never  has  been  a 
systematic  investigation  and  reorganization  of  this  governmen- 
tal structure  with  a  view  to  eliminating  duplications,  to  uniting 
bureaus  where  union  is  possible  and  more  effective,  and  to  mak- 
ing the  whole  organization  more  compact  and  its  parts  more 
closely  coordinated.  As  a  beginning,  we  examined  closely  the 
estimates.  These,  unless  watched,  grow  from  year  to  year  un- 
der the  natural  tendency  of  the  bureau  chiefs.  The  first  esti- 
mates which  were  presented  to  us  we  cut  some  $50,000,000,  and 
this  policy  we  have  maintained  through  the  administration  and 
have  prevented  the  normal  annual  increase  in  Government  ex- 
penditures, so  the  result  is  that  the  deficit  of  $58,735,000,  which 
we  found  on  the  1st  of  July,  1909,  was  changed  on  the  1st  of 
July,  1910,  by  increase  of  the  revenues  under  the  Payne  law, 
including  the  corporation  tax,  to  a  surplus  of  $15,806,000 ;  on 
July  1,  1911,  to  a  surplus  of  $47,234,000,  and  on  July  1,  1912, 
to  a  surplus  of  $36,336,000.  The  expenditures  for  1909  were 
$662,324,000;  for  1910,  $659,705;000 ;  for  1911,  $654,138,000;  and 
for  1912,  $654,804,000.  These  figures  of  surplus  and  expenditure 
do  not  include  any  receipts  or  expenditures  on  account  of  the 
Panama   Canal. 


12  SPEECH  OF  HON.  W.  H.  TAFT. 

I  secured  an  appropriation  for  the  appointment  of  an  Econ- 
omy and  Efficiency  Commission,  consisting  of  the  ablest  experts 
in  the  country,  and  they  have  been  working-  for  two  years  on 
the  question  of  how  the  Government  departments  may  be  re- 
organized and  what  changes  can  be  made  with  a  view  to  giving 
them  greater  effectiveness  for  governmental  purposes  on  the  one 
hand  and  securing  this  at  considerably  less  cost  on  the  other. 
I  have  transmitted  to  Congress  from  time  to  time  the  recom- 
mendations of  this  commission,  and  while  they  can  not  all  be 
adopted  at  one  session,  and  while  their  recommendations  have 
not  been  rounded  and  complete  because  of  the  necessity  for 
taking  greater  time,  I  think  that  the  Democratic  Appropriations 
Committee  of  the  House  has  become  convinced  that  we  are  on 
the  right  road  and  that  substantial  reform  may  be  effected 
through  the  adoption  of  most  of  the  plans  recommended  by  this 
commission. 

PANAMA   CANAL. 

For  the  benefit  of  our  own  people  and  of  the  world  we  have 
carried  on  the  work  of  the  Panama  Canal  so  that  we  can  now 
look  forward  with  confidence  to  its  completion  within  18  months. 
The  work  has  been  a  remarkable  one,  and  has  involved  the  ex- 
penditure of  $30,000,000  to  $40,000,000  annually  for  a  series  of 
years,  and  yet  it  has  been  attended  with  no  scandal,  and  with 
a  development  of  such  engineering  and  medical  skill  and  in- 
genuity as  to  command  the  admiration  of  the  world  and  to  bring 
the  highest  credit  to  our  Corps  of  Army  Engineers  and  our  Army 
Medical  Corps. 

FOREIGN    RELATIONS. 

In  our  foreign  relations  we  have  maintained  peace  everywhere 
and  sought  to  promote  its  continuance  and  permanence. 

We  have  renewed  the  Japanese  treaty  for  12  more  years  and 
have  avoided  certain  difficulties  that  were  supposed  to  be  in- 
superable as  between  the  two  countries  by  an  arrangement 
which   satisfies  both. 

We  negotiated  certain  broad  treaties  for  the  promotion  of 
universal  arbitration  which,  if  they  had  been  ratified,  would 
have  greatly  contributed  toward  perfecting  machinery  for  secur- 
ing general  peace.  The  Democratic  minority  of  the  Senate 
withheld  the  necessary  two-thirds  vote,  and  amended  the 
treaties  in  such  a  way  as  to  make  it  doubtful  whether  they  are 
worth  preserving. 

In  China  we  have  exercised  a  beneficial  influence  as  one  of 
the  powers  interested  in  aiding  that  great  country  in  its  for- 
ward movement  and  in  its  effort  to  establish  and  maintain 
popular  government.  In  order  that  our  influence  might  be 
useful   we   have   acted   with   the    other   great   powers    and   have 


SPEECH  OF  HON.  W.  H.  TAFT.  13 

exercised  our  influence  effectively  toward  the  strengthening  of 
the  popular  movement  and  giving  the  Republic  governmental 
stability.  We  have  lent  our  good  offices  in  the  negotiation  of 
a  loan  essential  to  the  continuance  of  the  Republic  and  which 
we  hope  that  China  will  accept  under  such  conditions  of  super- 
vision as  are  adequate  to  the  security  of  the  lenders  and  at  the 
same  time  will  be  of  great  assistance  to  those  in  whose  behalf 
the  loan  is  made,  the  people  of  China. 

Our  Mexican  neighbor  on  the  south  has  been  disturbed  by  two 
revolutions  and  these  have  necessarily  brought  a  strain  upon 
our  relations  because  of  the  losses  sustained  by  American  citi- 
zens, both  in  property  and  in  life,  due  to  the  lawlessness  which 
could  not  be  prevented  under  conditions  of  civil  war.  The 
pressure  for  intervention  at  times  has  been  great,  and  grounds 
upon  which,  it  is  said,  we  might  have  intervened  have  been 
urged  upon  us,  but  this  administration  has  been  conscious  that 
one  hostile  step  in  intervention  and  the  passing  of  the  border 
by  one  regiment  of  troops  would  mean  war  with  Mexico,  the 
expenditure  of  hundreds  of  millions  of  dollars,  the  loss  of 
thousands  of  lives  in  the  tranquillization  of  that  country,  with 
all  the  subsequent  problems  that  would  arise  as  to  its  disposition 
after  we  found  ourselves  in  complete  armed  possession. 

In  order  to  avoid  the  plain  consequences,  it  seemed  the  course 
of  patriotism  and  of  wisdom  to  subject  ourselves  and  our  citi- 
zens to  some  degree  of  suffering  and  inconvenience  and  to  pass 
over  with  a  strong  protest  and  a  claim  for  damages  even  those 
injuries  inflicted  on  our  peaceful  citizens  in  our  own  territory 
along  the  border  by  flying  bullets  in  engagements  between  the 
governmental  and  the  revolutionary  forces  on  the  Mexican  side. 
It  is  easy  to  arouse  popular  indignation  over  an  instance  of 
this  character.  It  is  easy  to  take  advantage  of  it  for  the  pur- 
pose of  justifying  aggressive  action,  and  it  is  easy  to  cultivate 
political  support  and  popularity  by  a  warlike  and  truculent  pol- 
icy, but  with  the  familiarity  that  we  have  had  in  the  carrying 
on  of  such  a  war  in  the  Philippines  and  in  Cuba,  no  one  with  a 
sense  of  responsibility  to  the  American  people  would  involve 
them  in  the  almost  unending  burden  and  thankless  task  of  en- 
forcing peace  upon  these  15,000,000  of  people  fighting  among 
themselves,  when  they  would  necessarily  all  turn  against  us  at 
the  first  manifestation  of  our  purpose  to  intervene.  I  am  very 
sure  that  the  course  of  self-restraint  the  administration  has 
pursued  in  respect  to  Mexico  will  vindicate  itself  in  the  pages  of 
history. 

I  am  hopeful  that  the  present  Government  is  now  rapidly 
subduing  the  insurrection  and  that  we  may  look  for  tranquillity 
near  at  hand.  The  demonstration  of  force  which  I  felt  com- 
pelled to  make  in  the  early  part  of  the  disturbance,  by  the  mo- 


14  SiPEECH  OF  HON.  W.  H.  TAFT. 

bilization  of  some  15,000  or  20,000  troops  in  Texas,  and  holding 
maneuvers  there,  had  a  good  and  direct  effect  and,  as  our  am- 
bassador and  consuls  report,  secured  much  increased  respect  for 
American  and  other  foreign  property  in  the  disturbances  that 
followed.  Similar  questions  have  arisen  in  Cuba,  but  we  have 
been  able  to  avoid  intervention,  and  to  aid  and  encourage  that 
young  Eepublic  by  suggestion  and  advice. 

I  am  glad  to  believe  that  we  have  had  more  peace  in  the  Cen- 
tral American  Eepublics  because  of  our  attention  to  their  needs 
anu  our  activity  in  mediating  between  them  than  ever  before 
in  the  history  of  those  republics. 

THE  NAVY. 

The  dignity  and  effectiveness  of  the  Government  of  the 
United  States,  together  with  its  responsibility  for  the  protec- 
tion of  Hawaii,  Porto  Rico,  Alaska,  Panama,  and  the  Philippines, 
as  well  as  for  the  upholding  of  the  Monroe  doctrine,  require 
the  maintenance  of  an  Army  and  a  Navy.  We  can  not  properly 
reduce  either  below  its  present  effective  size.  The  plan  for  the 
maintenance  of  the  Navy  in  proportion  to  the  growth  of  other 
navies  of  the  world  calls  for  the  construction  of  two  new  battle- 
ships each  year.  The  Republican  Party  has  felt  the  responsibility 
and  voted  the  ships.  The  Democratic  Party,  in  House  caucus, 
repudiates  any  obligation  to  meet  this  national  need. 

THE   PHILIPPINES. 

The  Philippines  have  had  popular  government  and  much 
prosperity  during  this  administration  in  view  of  the  free  trade 
which  they  have  enjoyed  under  the  Payne  bill.  The  continu- 
ance of  the  same  policy  with  respect  to  the  Philippines  will 
make  the  prosperity  of  those  islands  greater  and  greater  and 
will  gradually  fit  their  people  for  'self-government,  and  nothing 
will  prevent  such  results  except  the  ill-advised  policy  proposed 
by  the  Democratic  Party  of  holding  before  the  Philippine  peo- 
ple independence  as  a  prospect  of  the  immediate  future. 

OUR   FOREIGN    TRADE. 

During  this  administration  everything  possible  has  been  done 
to  increase  our  foreign  trade,  and  under  the  Payne  bill  the 
maximum  and  minimum  clause  furnished  the  opportunity  for 
insisting  upon  the  removal  by  foreign  countries  of  discrimina- 
tions in  that  trade,  so  that  the  statistics  show  that  our  exports 
and  imports  reached  for  the  year  ending  July  1,  1912,  a  higher 
figure  than  ever  before  in  the  history  of  the  country.  Our  im- 
ports for  the  last  fiscal  year,  ending  July  1,  1912,  amounted  to 
$1,653,426,174  and  our  exports  to  $2,049,320,199,  or  a  total 
of  $3,857,648,262.  If  there  were  added  to  this  the  business  done 
with  Porto  Rico,  Hawaii,  and  the  Philippines,  the  sum  total  of 


SPEECH  OF  HON.   W.  H.  TAFT.  15 

our  foreign  trade  would  considerably  exceed  $4,000,000,000.  The 
excess  of  our  exports  over  imports  is  $550,795,914.  Manufac- 
tures exported  during  the  year  1912  exceed  $1,000,000,000  and 
surpass  the  previous  record.  These  figures  seem  to  show  that 
the  business  is  large  enough  to  produce  prosperity,  and  the 
fact  is  that  it  has  done  so. 

PROTECTIVE    TARIFF. 

The  platform  of  1908  promised,  on  behalf  of  the  Republican 
Party,  to  do  certain  things.  One  was  that  the  tariff  would  be 
revised  at  an  extra  session.  An  extra  session  was  called  and 
the  tariff  was  revised.  The  platform  did  not  say  in  specific 
words  that  the  revision  would  be  generally  downward,  but  I  con- 
strued it  to  mean  that.  During  the  pendency  of  the  bill  and 
after  it  was  passed,  it  was  subjected  to  the  most  vicious  mis- 
representation. It  was  said  to  be  a  bill  to  increase  the  tariff 
rather  than  to  reduce  it.  The  law  has  been  in  force  now  since 
August,  1909,  a  period  of  about  35  months.  We  are  able  to  judge 
from  its  operation  how  far  the  statement  is  true  that  it  did  re- 
duce duties. 

It  has  vindicated  itself.  Under  its  operation,  prosperity  has 
been  gradually  restored  since  the  panic  of  1907.  There  have  been 
no  disastrous  failures  and  no  disastrous  strikes.  The  percent- 
age of  reduction  below  the  Dingley  bill  is  shown  in  the  larger 
free  list  and  in  the  lower  percentage  of  the  tariff  collected  on 
the  total  value  of  the  goods  imported.  The  figures  show  that 
under  the  Dingley  bill,  which  was  in  force  144  months,  the 
average  per  cent  of  the  imports  that  came  in  free  was  in  value 
44.3  per  cent  of  the  total  importations,  and  that  under  the 
Payne  bill,  which  has  been  in  force  35  months,  the  average  per 
cent  in  value  of  the  imports  which  have  come  in  free  amounts 
to  51.2  per  cent  of  the  total ;  that  the  average  ad  valorem  of 
the  duties  on  dutiable  goods  under  the  12  years  of  the  Dingley 
bill  was  45.8  per  cent,  while  under  the  35  months  of  the  Payne 
bill  this  was  41.2  per  cent,  and  that  the  average  ad  valorem  of 
duties  on  all  the  imports  under  the  Dingley  bill  was  25.5  per 
cent,  while  under  the  Payne  bill  it  was  20.1  per  cent.  In  other 
words,  considering  only  reductions  on  dutiable  goods,  the  reduc- 
tion in  duties  from  the  Dingley  bill  to  the  Payne  bill  was  10 
per  cent,  and  considering  reductions  on  all  imports  it  amounted 
to  21  per  cent. 

Under  the  provisions  of  the  Payne  bill  I  was  able  to  appoint 
a  Tariff  Board  to  make  investigations  into  each  schedule  with 
a  view  to  determining  the  cost  of  production  here  and  the 
cost  of  production  abroad  of  the  articles  named  in  the  schedule, 
in  order  to  enable  Congress  in  adjusting  this  schedule  to  know 
what  rate  of  duty  was  necessary  to  prevent  a  destructive  com- 


16  SPEECH  OF  HON.  W.  H.  TAPT. 

petition    from    European   countries    and   the    closing   up    of    our 
mills   and   other   sources   of   production.     We   are   living   on   an 
economic  basis  established  on  principles  of  protection.     A  large 
part  of  our  products  are  dependent  for  existence  upon  a  rate 
of  duty  sufficient  to  save  the  producer  from  foreign  competition 
which  would  make  the  continuance  of  his  business  impossible, 
in  the  making  of  the  Payne  bill  Congress  did  not  have  the  ad- 
vantage  of  the  report  of  the  Tariff  Board  showing  the  exact 
facts.     If  it  had,  the  bill  would  have  been  constructed  on  a  bet- 
ter basis,  but  we  now  have  had  the  Tariff  Board  working,  and 
it  has  made  a  report  on  the  production  of  wool  a'nd  the  manu- 
facture of  woolens  in  this  country  and  abroad,  and  has  compiled 
and  made  public  similar  data  as  to  the  manufacture  of  cotton 
goods.     If  the  Eepublican  Party  had  control  of  the  House  of 
Representatives,  there  would  be  no  difficulty    now  in  passing  a 
woolen  bill  like  those  which  have  been  presented  by  the  Repub- 
licans in  both  Houses  of  Congress,  reducing  the  duty  on  wool 
and  on  woolens  to  such  a  degree  as  not  to  include  more  than 
enough  to  enable  the  grower  of  wool  and  the  woolen  industry 
to  live  and  produce  a  reasonable  profit.     The  same  thing  could 
be  done  with  respect  to  the  cotton  industry.     On  the  other  hand, 
our  opponents,  the  Democrats,  presented  to  me  for  my  signature 
a  woolen  bill  and  a  cotton  bill,   both  of  which,   if  allowed  to 
become  laws,  as  the  reports  of  the  Tariff  Board  show,  would 
have  made  such  a  radical  cut  in  the  rates  on  many  woolen  and 
cotton    manufactures   as    seriously   to    interfere   with   those    in- 
dustries in  this  country.     This  would  have  forced  a  transfer  of 
the   manufacture   to  England   and   Germany    and   other   foreign 
countries. 

THE  RESULT  OF  DEMOCRATIC  SUCCESS. 

If  the  result  of  the  election  were  to  put  the  Democrats  com- 
pletely in  control  of  all  branches  of  the  Government,  then  we 
should  look  for  the  reduction  of  duties  upon  all  those  arti- 
cles which  need  protection  and  may  anticipate  a  serious  in- 
jury to  a  large  part  of  our  manufacturing  industry.  We 
would  not  have  to  wait  for  actual  legislation  on  this  subject; 
the  very  prospect  of  Democratic  success  when  its  policy  toward 
our  great  protected  industries  became  understood  would 
postpone  indefinitely  the  coming  of  prosperity  arid  tend  to 
give  us  a  recurrence  of  the  hard  times  that  we  had  be- 
tween 1890  and  1897.  The  Democratic  platform  declares  pro- 
tection to  be  unconstitutional,  although  it  has  been  the  motive 
and  purpose  of  most  tariff  bills  since  1789,  and  thus  indicates  as 
clearly  as  possible  the  intention  to  depart  from  a  protective 
policy  at  once.  It  is  true  the  Democratic  platform  says  tnat  the 
change  to  the  policy  of  a  revenue  tariff  is  to  be  made  in  such  a 
way  as  not  to  injure  industry.    This  is  utterly  impossible  when 


SPEECH  OF  HON.  W.  H.  TAPT.  17 

we  are  on  a  protective  basis ;  and  it  is  conclusively  shown  to 
be  so  by  the  necessary  effect  of  bills  already  introduced  and 
passed  by  the  Democratic  House  for  the  purpose  of  making 
strides  toward  a  revenue  tariff.  It  is  now  more  than  15  years 
since  the  people  of  this  country  have  had  an  experience  in  such 
a  change  as  that  which  the  coming  in  of  the  Democratic  Party 
would  involve.  It  ought  to  be  brought  home  to  the  people  as 
clearly  as  possible  that  a  change  of  economic  policy,  such  as 
that  which  is  deliberately  proposed  in  the  Democratic  platform, 
would  halt  many  of  our  manufacturing  enterprises  and  throw 
many  wage  earners  out  of  employment,  would  injure  much  the 
home  markets  which  the  farmers  now  enjoy  for  their  products, 
and  produce  a  condition  of  suffering  among  the  people  that  no 
reforming  legislation  could  neutralize  or  mitigate. 

THE    HIGH    COST    OF    LIVING    AND    THE   PAYNE    LAW. 

The  statement  has  been  widely  circulated  and  has  received 
considerable  support  from  political  opponents,  that  the  tariff 
act  of  1909  is  a  chief  factor  in  the  high  cost  of  living.  This 
is  not  true.  A  careful  investigation  will  show  that  the  phenome- 
non of  increased  prices  and  cost  of  living  is  world-wide  in  its  ex- 
tent and  quite  as  much  in  evidence  in  other  countries  of  advanced 
civilization  and  progressive  tendencies  as  in  our  own.  Bitter 
complaints  of  the  burden  of  increased  prices  and  cost  of  liv- 
ing have  been  made  not  only  in  this  country  and  Europe,  but  also 
in  countries  of  Asia  and  Africa.  Disorder  and  even  riots  have 
occurred  in  several  European  cities  because  of  the  unprecedented 
cost  of  food  products.  In  our  own  country,  changes  have  been 
manifested  without  regard  to  lower  or  higher  duties  in  the 
tariff  act  of  1909.  Indeed,  the  most  notable  increase  in  prices 
has  been  in  the  case  of  products  where  no  duties  are  imposed, 
and  in  some  instances  in  which  they  were  diminished  or  re- 
moved by  the  recent  tariff  act. 

It  is  difficult  to  understand  how  any  legislation  vaguely  prom- 
ised in  a  political  platform  can  remedy  this  universal  condition. 
I  have  recommended  the  creation  of  a  commission  to  study  this 
subject  and  to  report  upon  all  possible  methods  for  alleviating 
the  hardship  of  which  the  people  complain,  but  great  economic 
tendencies,  notable  among  which  are  the  practically  universal 
movement  from  the  country  to  the  city  and  the  increased  supply 
of  gold,  have  been  the  most  potent  factors  in  causing  high  prices. 
These  facts  every  careful  student  of  the  situation  must  admit. 

EFFECT  OF  EXCESSIVE  TARIFF  BATES. 

There  is  one  respect  in  which  high  tariff  rates  may  make  for 
exorbitant  prices.  If  the  rate  is  higher  than  the  difference  be- 
tween the  cost  of  production  here  and  abroad,  then  it  tempts 


18  SPEECH  OP  HON.  W.  H.  TAFT. 

the  manufacturers  of  this  country  to  secure  monopoly  of  the 
industry  and  to  increase  prices  as  far  as  the  excessive  tariff 
will  permit.  The  danger  may  be  avoided  in  two  ways:  First, 
by  carefully  adjusting  the  tariff  on  articles  needing  protection 
so  that  the  manufacturer  secures  only  enough  protection  to  pay 
the  scale  of  high  wages  which  obtains  and  ought  to  obtain  in 
this  country  and  secure  a  reasonable  profit  from  the  business. 
This  may  be  done  by  the  continuance  of  the  Tariff  Board's  in- 
vestigation into  the  facts,  which  will  enable  Congress  and  the 
people  to  know  what  the  tariff  as  to  each  schedule  ought  to  be. 
The  American  public  may  rest  assured  that  should  the  Repub- 
lican Party  be  restored  to  power  in  all  legislative  branches,  all 
the  schedules  in  the  present  tariff  of  which  complaint  is  made 
will  be  subjected  to  investigation  and  report  without  delay  by 
a  competent  and  impartial  Tariff  Board  and  to  the  reduction 
or  change  which  may  be  necessary  to  square  the  rates  with  the 
facts. 

The  other  method  of  avoiding  danger  of  excessive  prices  from 
excessive  duties  is  to  enforce  the  antitrust  laws  against  those 
who  combine  to  take  advantage  of  the  excessive  tariff  rates. 
This  brings  me  to  the  discussion  of  the  Sherman  Act. 

THE    ANTITRUST   LAW. 

The  antitrust  law  was  passed  to  provide  against  the  organi- 
zation and  maintenance  of  combinations  for  the  manufacture 
and  sale  of  commodities,  which  through  restraint"  of  trade,  either 
by  contract  and  agreement  or  by  various  methods  of  unfair  com- 
petition, should  suppress  competition,  establish  monopoly,  and 
control  prices.  Th«  measure  has  been  on  the  statute  book  since 
1890,  and  many  times  under  construction  by  the  courts,  but  not 
until  the  litigation  against  the  Standard  Oil  Co.  and  against  the 
American  Tobacco  Co.  reached  the  Supreme  Court  did  the  statute 
receive  an  authoritative  construction  which  is  workable  and  in- 
telligible. 

NEW   CONSTRUCTIVE  LEGISLATION. 

It  would  aid  the  business  public  if  specific  acts  of  unfair  trade 
which  characterize  the  establishment  of  unlawful  monopolies 
should  be  denounced  as  misdemeanors  for  the  purpose,  first,  of 
making  plainer  to  the  public  what  must  be  avoided,  and,  second, 
for  the  purpose  of  punishing  such  acts  by  summary  procedure 
without  the  necessity  for  the  formidable  array  of  witnesses  and 
the  lengthy  trials  essential  to  establish  a  general  conspiracy 
under  the  present  act.  But  there  is  great  need  for  other  con- 
structive legislation  of  a  helpful  kind.  Combination  of  capital 
in  great  enterprises  should  be  encouraged,  if  within  the  law, 
for  everyone  must  recognize  that  progress  in  modern  business 
is  by  effective  combination  of  the  means  of  production  to  the 


SPEECH  OF  HON.  W.  H.  TAFT.  19 

point  of  greatest  economy.  It  should  te  our  purpose,  therefore, 
to  put  large  interstate  business  enterprises  acting  within  the 
law  on  a  basis  of  security  by  offering  them  a  Federal  corporation 
law  under  which  they  may  voluntarily  incorporate.  Such  an 
act  is  not  an  easy  one  to  draw  in  detail,  but  its  general  outlines 
are  clearly  defined  by  the  two  objects  of  such  a  law.  One  is 
to  secure  for  the  public,  through  competent  Government  agency, 
such  a  close  supervision  and  regulation  of  the  business  trans- 
actions of  the  corporation  as  to  preclude  a  violation  of  the  anti- 
trust and  other  laws  to  which  the  business  of  the  corporation 
must  square,  and  the  other  is  to  furnish  to  business  thus  in- 
corporated and  lawfully  conducted  the  protection  and  security 
which  it  must  enjoy  under  such  a  Federal  charter.  With  the 
faculties  conferred  by  such  a  charter,  corporations  could  do 
business  in  all  the  States  without  complying  with  conflicting 
exactions  of  State  legislatures,  and  could  be  sure  of  uniform 
taxation,  i.  e.,  uniform  with  that  imposed  by  the  State  on  State 
corporations   in  the   same  business. 

OPPOSED    TO    PROPOSED    DEASTIO    AMENDMENTS. 

I  am  not  in  sympathy  with  the  purpose  to  make  the  antitrust 
law  more  drastic  by  such  a  provision  as  is  proposed  by  the 
Democratic  majority  of  the  investigating  committee  of  the 
House,  for  imposing  a  rule  as  to  burden  of  proof  upon  de- 
fendants under  antitrust  prosecutions  different  from  that  which 
defendants  in  other  prosecutions  enjoy.  This  can  not  be  sug- 
gested by  any  difficulty  found  in  proving  to  the  courts  the 
illegality  of  such  combinations  when  the  illegality  exists.  I 
challenge  the  production  of  a  single  record  in  any  case  in  which 
an  objectionable  combination  has  escaped  a  decree  against  it 
because  of  any  favorable  rule  as  to  the  burden  of  proof.  It  is 
true  that  many  defendants  in  criminal  cases  have  escaped  by  a 
failure  of  the  jury  to  convict,  but  that  arises  from  the  reluctance 
and  refusal  of  jurors  to  find  verdicts  upon  which  men  are  likely 
to  be  sent  to  the  penitentiary  for  pursuing  a  course  in  business 
competition  which  the  ordinary  man  did  not  regard  as  immoral 
or  criminal  before  the  passage  of  the  act. 

CONSISTENT    COURSE   IN    PROSECUTION    OF    THE   LAW. 

I  think  I  may  affirm  without  contradiction  that  the  prosecu- 
tion of  all  persons  reported  to  the  Department  of  Justice  to  have 
violated  the  antitrust  law  has  been  carried  on  in  this  administra- 
tion without  fear  or  favor,  and  that  everyone  who  has  violated 
it,  no  matter  how  prominent  or  how  great  his  influence,  has 
been  brought  before  the  bar  of  the  court  either  in  civil  or 
criminal  suit  to  answer  the  charge. 

It  is  the  custom  of  those  who  find  it  to  their  political  in- 
terest to   do  so  to   sneer   at,  as   innocuous,  the   decrees  against 


20  Sx'EEOH  OF  HON.  W.  H.  TAFT. 

the  American  Tobacco  Company  and  against  the  Standard  Oil 
Company,  and  the  administration  is  condemned  in  the  Demo- 
cratic plat-form  for  consenting-  to  a  compromise  in  the  Standard 
Oil  case. %  There  was  no  compromise.  The  Standard  Oil  decree 
was  entered  by  the  circuit  court,  and  then  by  the  Supreme 
Court,  on  the  prayer  of  the  Government  contained  in  the  original1 
bill  filed  in  a  previous  administration.  The  decree  in  the  To- 
bacco case  was  reached  after  a  full  discussion  and  entered  by 
the  circuit  court,  consisting  of  four  circuit  judges,  as  a  proper 
decree,  and  the  Government  refused  to  appeal  from  it  because 
it  did  not  feel  that  it  had  grounds  upon  which  to  base  such  an 
appeal.  Both  decrees  are  working  well.  Both  decrees  have 
introduced  competition,  the  one  into  branches  of  the  tobacco 
business  and  the  other  into  branches  of  the  oil  business.  They 
have  not  reintroduced  ruinous  competition,  but  they  have 
affected  certain  prices  in  such  a  way  as  to  show  the  presence 
of  real  competition.  The  division  of  the  two  trusts  by  the 
decrees  into  several  companies  was  not  expected  to  show  imme- 
diate radical  change  in  the  business.  It  may  take  some  years 
to  show  all  the  benefits  of  the  dissolution,  but  the  limitations 
of  the  decrees  in  those  two  cases  are  so  specific  as  to  make 
altogether  impossible  a  resumption  of  the  old  combination 
against  which  the  decrees  were  entered.  Even  if  experience 
shall  show  the  decrees  to  be  inadequate,  full  opportunity  in 
future  litigation  will  be  afforded  to  supply  the  defects. 

The  contest  has  been  a  long  one.  For  years  the  rule  laid  down 
in  the  statute  was  ignored  and  laughed  at,  but  the  power  of 
courts  of  justice  pursuing  quietly  the  law  and  enforcing  it  when- 
ever opportunity  arose  has  finally  convinced  the  business  public 
that  ttie  antitrust  law  means  something,  and  that  the  policy  of 
the  administration  in  enforcing  it  means  something.  A  number 
of  these  combinations  illegally  organized  and  maintained  are 
now  coming  forward  admitting  their  illegality  and  seeking  a 
decree  of  dissolution,  injunction,  and  settlement.  They  are 
quite  prepared  to  square  with  that  policy,  provided  it  be  defin- 
itely understood  that  it  be  impartially  enforced  and  that  security 
shall  attend  compliance  with  the  law.  My  belief  is  that  the.'-e 
decrees  mark  the  beginning  of  a  new  era  in  industrial  develop- 
ment; that  what  the  great  corporations  of  the  country  now 
desire  is  not  what  they  manifestly  did  20  years  ago,  to  wit,  to 
obtain  a  monopoly  in  each  business,  but  it  is  to  maintain  a 
large  enough  plant  to  secure  the  greatest  economy  in  produc- 
tion on  the  one  hand  and  to  avoid  the  danger  of  the  threats  of 
prosecution  and  disturbance  of  their  business  on  the  other. 
It  will  be  the  work  of  the  highest  statesmanship  to  secure  the>e 
ends,  and  the  Republican  Party  if  given  the  power  will  accom- 
plish it.  , 


SPEECH  OF  HON.  W.  H.  TAFT.  >  21 


CONCLUSION. 


I  have  thus  outlined,  Mr.  Root  and  gentlemen,  what  I  con- 
sider to  be  the  chief  issues  of  this  campaign.  There  are  others 
of  importance,  but  time  does  not  permit  me  to  discuss  them.  In 
accordance  with  the  usual  custom  I  reserve  the  opportunity  to 
supplement  these  remarks  in  a  letter  to  be  addressed  to  you  at 
a  later  date  when  the  alignments  of  the  campaign  may  require 
further  discussion. 

For  the  present  it  is  sufficient  for  me  to  say  that  it  is  greatly 
in  the  interest  of  the  people  to  maintain  the  solidarity  of  the 
Republican  Party  for  future  usefulness  and  to  continue  it  and 
its  policies  in  control  of  the  destinies  of  the  Nation.  I  can  not 
think  that  the  American  people,  after  the  scrutiny  and  educa- 
tion of  a  three-months'  campaign,  during  which  they  will  bo 
able  to  see  through  the  fog  of  misrepresentation  and  dema- 
goguery,  will  fail  to  recognize  that  the  two  great  issues  which 
are  here  presented  to  them  are,  first,  whether  we  shall  retain, 
on  a  sound  and  permanent  basis,  our  popular  constitutional 
representative  form  of  government,  with  the  independence  of 
the  judiciary  as  necessary  to  the  preservation  of  those  liberties 
that  are  the  inheritance  of  centuries,  and,  second,  whether  we 
shall  welcome  prosperity  which  is  just  at  our  door  by  main- 
taining our  present  economic  business  basis  and  by  the  encour- 
agement of  business  expansion  and  progress  through  legitimate 
use  of  capital. 

I  know  that  in  this  wide  country  there  are  many  who  call 
themselves  Democrats,  who  view,  with  the  same  aversion  that 
we  Republicans  do,  the  radical  propositions  of  change  in  our 
form  of  Government  that  are  recklessly  advanced  to  satisfy  what 
is  supposed  to  be  popular  clamor.  They  are  men  who  revere 
the  Constitution  and  the  institutions  of  their  Government  with 
all  the  love  and  respect  that  we  could  possibly  have,  men  who 
deprecate  disturbance  in  business  conditions,  and  are  yearning 
for  that  quiet  from  demagogic  agitation  which  is  essential  to 
the  enjoyment  by  the  whole  people  of  the  great  prosperity  which 
the  good  crops  and  the  present  conditions  ought  to  bring  to  us. 
To  them  I  appeal,  as  to  all  Republicans,  to  join  us  in  an  earnest 
effort  to  avert  the  political  and  economic  revolution  and  busi- 
ness paralysis  which  Republican  defeat  will  bring  about.  Such 
misfortune  will  fall  most  heavily  on  the  wage  earner.  May  we 
not  hope  that  he  will  see  what  his  real  interest  is,  will  under- 
stand the  shallowness  of  attacks  upon  existing  institutions  and 
deceitful  promises  of  undefined  benefit  by  undefined  changes? 
May  we  not  hope  that  the  great  majority  of  voters  will  be 
able  to  distinguish  between  the  substance  of  performance  and 
the  fustian  of  promise ;  that  they  may  be  able  to  see  that  those 


22  SPEECH  OF  HON.  W.  H.  TAFT. 

who  would  deliberately  stir  up  discontent  and  create  hostility 
toward  those  who  are  conducting  legitimate  business  enter- 
prises, and  who  represent  the  business  progress  of  the  county, 
are  sowing  dragons'  teeth?  Who  are  the  people?  They  are  not 
alone  the  unfortunate  and  the  weak;  they  are  the  weak  and 
the  strong,  the  poor  and  the  rich,  and  the  many  who  are  neither, 
the  wage  earner  and  the  capitalist,  the  farmer  and  the  profes- 
sional man,  the  merchant  and  the  manufacturer,  the  storekeeper 
and  the  clerk,  the  railroad  manager  and  the  employee — they  all 
make  up  the  people  and  they  all  contribute  to  the  running  of 
the  Government,  and  they  have  not  any  of  them  given  into  the 
hands  of  anyone  the  mandate  to  speak  for  them  as  peculiarly 
the  people's  representative.  Especially  does  not  he  represent 
them  who,  assuming  that  the  people  are  only  the  discontented, 
would  stir  them  up  against  the  remainder  of  those  whose  Gov- 
ernment alike  this  is.  In  other  campaigns  before  this,  the  Ameri- 
can people  have  been  confused  and  misled  and  diverted  from  the 
truth  and  from  a  clear  perception  of  their  welfare  by  specious 
appeals  to  their  prejudices  and  their  misunderstanding,  but  the 
clarifying  effect  of  a  campaign  of  education,  the  pricking  of  the 
bubbles  of  demagogic  promise  which  the  discussions  of  a  cam- 
paign made  possible,  have  brought  the  people  to  a  clear  per- 
ception of  their  own  interests  and  to  a  rejection  of  the  injurious 
nostrums  that  in  the  beginning  of  the  campaign,  it  was  then 
feared,  they  might  embrace  and  adopt.  So  may  we  not  expect 
in  the  issues  which  are  now  before  us  that  the  ballots  cast  in 
November  shall  show  a  prevailing  majority  in  favor  of  sound 
progress,  great  prosperity  upon  a  protective  basis,  and  under 
true  constitutional  and  representative  rule  by  the  people? 


The  policy  of  expansion  is  what  distinguishes  the  administra- 
tion of  McKinley  and  adds  another  to  the  list  of  patriotic  victories 
of  the  Republican  Party.  By  this  policy  the  United  States  has 
become   a   world   power.— Hon.   Wm.   H.   Taft,   at   Kansas    City,   Mo. 

As  a  party  shows  itself  homogeneous,  able  to  grasp  the  truth 
with  respect  to  new  issues,  able  to  discard  unimportant  differences 
of  opinion,  sensitive  with  respect  to  the  successful  maintenance 
of  government,  and  highly  charged  with  the  responsibility  of  its 
obligation  to  the  people  at  large,  it  establishes  its  claim  to  the 
confidence  of  the  public  and  to  its  continuance  in  political  power. 
— Hon.  Wm.   H.  Taft,  at   Kansas   City,   Mo. 

Only  twice  in  all  that  remarkable  history  of  forty-eight  years 
have  we  lost  the  confidence  of  the  people  of  the  United  States  to 
the  point  of  their  turning  over  the  government  to  a  Democratic 
executive.  I  venture  to  say  that  neither  in  this  nor  in  any  other 
country  can  be  disclosed  such  a  remarkable  record  of  arduous 
deeds  done  as  in  that  history  of  a  half  century  of  the  Republican 
Party. — Hon.   Wm.    H.   Taft,    at    Kansas    City,    Mo. 

The  Democrats  are  a  party  having  no  solidarity,  uniting  ele- 
ments that  are  as  unmlxable  as  oil  and  water,  and  when  they 
come  to  make  a  government,  should  they  ever  be  elected  to  power, 
the  administration  would  become  as  nerveless  as  a  man  stricken 
with  paralysis,  hecause  the  radical  difference  between  the  elements 
neeessary  to  make  up  the  party  would  be  so  great  as  to  produce 
perfect  stagnation  iu  legislative  provision  for  the  emergencies 
which  might  arise.  The  Democratic  Party  to-day,  as  organized, 
is  nothing  but  organized  incapacity.  Neither  element  of  the  party 
would  have  a  sense  of  responsibility  strong  enough  to  overcome 
its  antagonism  to  the  principles  upheld  by  the  other  faction,  wcr« 
it  to  come  into  power. — Hon.  Wm.  H.  Taft,  at  Montpelier,  Vt. 


THE  TARIFF. 


On  the  4th  day  of  July,  1789,  President  George  Washington  ap- 
proved the  first  tariff  act  passed  by  the  American  Congress.  The 
first  section  of  that  act  began  as  follows : 

"Section  1.  Whereas  it  is  necessary  for  the  support  of  Gov- 
ernment, for  the  discharge  of  the  debts  of  the  United  States, 
and  the  encouragement  and  protection  of  manufactures,  that 
duties  be  laid  on  goods,  wares  and  merchandise  imported,"  be  it 
enacted,  etc. 

On  July  2,  1912,  a  Democratic  National  Convention,  sitting 
at  Baltimore,  Md.,  adopted  a  party  platform,  the  first  section  of 
which  begins  as  follows: 

"We  declare  it  to  be  a  fundamental  principle  of  the  Demo- 
cratic Party  that  the  Federal  Government,  under  the  Constitu- 
tion, has  no  right  or  power  to  impose  or  collect  tariff  duties  ex- 
cept for  the  purpose  of  revenue." 

In  that  first  Congress  were  the  fathers  of  the  Republic,  the 
men  who  had  helped  to  make  the  Constitution  under  which  the 
Government  has  continued  for  123  years,  through  the  storms  of 
war,  through  financial  panics,  through  social  and  industrial  de- 
velopment, until  now  we  are  at  peace  with  the.  world  and  enjoy- 
ing a  prosperity  which  is  unparalleled  in  all  history. 

Among  the  men  who  made  the  first  declaration  were: 

John  Adams  and  Fisher  Ames,  of  Massachusetts. 

Frederick  A.  Muhlenberg  and  Robert  Morris,  of  Pennsylvania. 

Oliver  Ellsworth  and  Roger  Sherman,  of  Connecticut. 

Abraham  Baldwin,  of  Georgia. 

James  Monroe  and  James  Madison,  of  Virginia. 

Charles  Carroll,  of  Maryland. 

Rufus  King,  of  New  York. 

Among  the  men  who  made  the  second  declaration  was  one 
who  wrote  the  platform,  prescribed  the  time  of  its  adoption, 
presented  it  to  the  convention  and  dictated  the  candidate  who 
was  to  stand  upon  it,  a  man  who  had  three  times  been  defeated 
for  the  Presidency: 

William  Jennings  Bryan,  of  Nebraska. 

If  the  declaration  of  the  Democratic  Party  is  right,  then  that 
of  the  first  American  Congress  is  wrong,  and  every  general  tariff 
act  from  the  beginning  of  the  Nation's  life  has  been  in  flat  viola- 
tion of  its  fundamental  law,  and  the  builders  of  the  Nation's 
greatness  through  all  these  years  have  been  successfully  planning 
in  ignorance  and  gloriously  achieving  without  right  or  power. 
Never  during  these  years  has  any  man  brought  to  a  final  judicial 
decision  the  claim  now  made,  never  but  twice  has  the  question 
been  raised  by  any  of  the  partners  to  the  original  agreement. 

NULLIFICATION,    FREE    TRADE. 

In  1832  the  State  of  South  Carolina  declared  that  the  protective 
tariff  acts  of  1828  and  1832  were  "unauthorized  by  the  Constitu- 
tion of  the  United  States  and  violated  the  true  intent  and  mean- 
ing thereof  and  were  null  and  void,  and  no  law,  nor  binding  upon 
the   State  of  South  Carolina." 

Tn  the  address  of  the  South  Carolina  Convention  to  the  people 
of  the  United  States,  they  declared  "the  fixed  and  final  determina- 
tion of  the  State  in  relation  to  the  protecting  System"  and  "that 
it  remains  for  us  to  submit  a  plan  of  taxation  in  which  we 
would  be  willing  to  acquiesce  in  a  liberal  spirit  of  concession. 
provided  we  are  met  in  due  time  and  in  a  becoming  spirit  by 
the  States  interested  in  manufactures." 

The  equitable  plan  was,  that  "the  whole  list  of  protected  ar- 
ticles should  be  imported  free  of  all  duty  and  that  the  revenue 

23 


24  THE  TARIFF. 

derived  from  import  duties  should  be  raised  exclusively  from  the 
unprotected  articles,  or  that  whenever  a  duty  is  imposed  upon 
protected  articles  imported,  an  excise  duty  of  the  same  rate 
shall  be  imposed  upon  all  similar  articles  manufactured  in  the 
United  States." 

If  the  South  Carolina  construction  of  the  Constitution  was 
right,  their  definition  of  a  tariff  for  revenue  only  was  absolutely 
right,  and  the  declaration  of  the  Democratic  platform  of  1912 
is  now  in  strict  accord  with  it. 

But  Andrew  Jackson  agreed  neither  with  the  legal  construc- 
tion nor  the  tariff  definitions  of  the  South  Carolina  Convention, 
for  in  his  first  message  to  Congress,  in  1829,  he  had  declared  that 
"The  general  rule  to  be  applied  in  graduating  the  duties  upon 
articles  of  foreign  growth  and  manufacture  is  that  which  will 
place  our  own  in  fair  competition  with  those  of  other  countries, 
and  the  inducements  to  advance  even  a  step  beyond  this  point  are 
controlling  in  regard  to  those  articles  which  are  of  prime  ne- 
cessity in  time  of  war." 

That  is  good  Republican  doctrine  now,  and  if  the  doughty  old 
General  were  alive  to-day  he  would  be  forced  to  stand  with  the 
Republican  Party,  and  repudiate  the  declaration  of  modern 
Democracy  that  "the  Federal  Government  under  the  Constitution 
has  no  right  or  power  to  impose  or  collect  tariff  duties,  except  for 
the  purpose  of  revenue" 

The  second  attempt  by  any  of  the  partners  to  the  orginal 
constitutional  agreement  to  publicly  set  forth  their  construction 
of  it  is  found  in  Article  I,  Section  8,  of  the  Constitution  of  the 
Confederate  States,  in  1861.     It  reads  as  follows: 

"Article  I,  Section  8.  The  Congress  shall  have  power  to  lay 
and  collect  taxes,  duties,  imposts  and  excises,  for  revenue  neces- 
sary to  pay  the  debts,  provide  for  the  common  defense,  and  carry 
on  the  Government  of  the  Confederate  States ;  but  no  bounties 
shall  be  granted  from  the  treasury,  nor  shall  any  duties  or  taxes 
be  laid  to  promote  or  foster  any  branch  of  industry,  and  all 
duties,  imposts  and  excises  shall  be  uniform  throughout  the  Con- 
federate States." 

But  nullification  and  free  trade  went  down  into  a  common 
grave  with  slavery  and  secession,  and  it  was  not  till  1892  that 
the  Democratic  Party  again  denied  the  constitutional  power  of 
this  Nation  to  encourage  and  protect  its  industries.  That  declara- 
tion was  followed  by  the  most  disastrous  industrial  panic  which 
this  country  has  ever  seen. 

Indeed,  the  fear  of  what  such  a  policy  might  bring  to  the  ex- 
panding industries  of  the  Nation  was  worse  than  the  reality 
itself,  and  with  the  passing  by  of  the  financial  troubles  of  1893 
to  1895,  the  struggling  industries  took  on  new  life  and  courage, 
and  gradually  became  ready  for  the  quickening  impulse  given 
them  by  the  real  protective  tariff  of  1897. 

DEMOCRATIC    INCONSISTENCIES. 

No  man  can  read  the  tariff  planks  of  the  eleven  Democratic 
platforms  formulated  since  the  Civil  War  and  not  reach  the 
conclusion  that  the  party  has  during  these  years  been  without 
any  fixed  principles  in  dealing  with  the  subject,  and  that  its 
only  aim  and  purpose  has  been  to  adjust  candidates  to  platforms 
and  platforms  to  candidates  with  the  sole  purpose  of  catering 
to  what  seemed  to  be  the  momentary  popular  impulse.  Taken 
together,  they  make  a  peddler's  pack  of  inconsistencies  of  public 
policies  offered  by  a  great  party  in  exchange  for  a  lease  of  power. 
The  American  people  paid  the  price  once,  in  1894,  and  have 
never  forgotten  or  ceased  to  regret  that  sore  experience. 

In  1868,  under  Horatio  Seymour,  they  declared  for  incidental 
protection  and  the  promotion  and  encouragement  of  the  indus- 
tries of  the  country. 

In  1872,  under  Horace  Greeley.  Ihe  discussion  of  irreconcilable 
differences  was  remitted  to  Concessional  districts. 

In  187(5,  under  Tilden,  the  demand  was  for  a  tariff  for  revenue 
only. 

In  1880.  a  tariff  for  revenue  only,  and  Hancock  declared  it  to 
be  a  local  issue. 


THE  TARIFF.  25 

In  1884,  under  Cleveland,  they  declared  that  American  labor 
must  be  protected  against  foreign  labor,  and  that  the  increased 
cost  of  production,  because  of  higher  wages  here,  must  be  amply- 
covered  in  any  reductions  which  might  be  made. 

In  1888,  under  Cleveland  again,  revision  with  due  allowance 
for  the  difference  in  the  wages  of  American  and  foreign  labor. 

In  1892,  under  Cleveland  again,  a  flat  denial  of  the  constitu- 
tional power  to  impose  tariff  duties  except  for  the  purpose  of  rev- 
enue only. 

In  1896,  under  Bryan,  opposition  to  any  agitation  of  tariff  re- 
vision until  the  money  question  was  settled. 

In  1900,  under  Bryan  again,  amend  the  existing  law  by  putting 
trust  products  on  the  free  list. 

In  1904,  under  Parker,  a  gradual  reduction  of  the  tariff. 

In  1908,  under  Bryan  again,  a  gradual  reduction  of  duties  to 
a  revenue  basis. 

In  view  of  these  varying,  conflicting  and  sometimes  meaning- 
less declarations  of  the  past  half  century,  the  absurdity  of  the 
Democratic  platform  of  1912  is  at  once  manifest,  but  it  is  also 
clear  and  plain  that  in  the  delusive  hopes  inspired  now  by  a 
temporary  gain  of  a  part  of  the  legislative  power,  the  dominant, 
controlling  principles  of  old-time  Southern  Democracy  have  taken 
on  new  life  and  power,  and  that  a  straight-out  free-trade  platform 
was  the  only  one  fitted  to  a  candidate  who  through  all  his  life 
has  believed  and  taught  that  doctrine,  and  who  now  declares 
that  the  whole  Republican  policy  of  protection  is  "ignorant  and 
preposterous." 

THE    PROTECTIVE    POLICY. 

The  Republican  Party  was  born  as  a  protest  against  slavery 
and  the  degradation  of  labor,  whether  white  or  black. 

With  its  protest  made  and  its  mission  established,  it  chose 
Abraham  Lincoln  as  its  leader  and  declared  "that  sound  policy 
required  such  an  adjustment  of  import  duties  as  to  encourage 
the  development  of  the  industrial  interests  of  the  whole  country, 
and  a  policy  of  national  exchanges  which  would  secure  to  work- 
ingmen  liberal  wages,  to  agriculture  remunerative  prices,  to  me- 
chanics and  manufacturers  an  adequate  reward  for  their  skill, 
labor  and  enterprise,  and  to  the  Nation  commercial  prosperity 
and  independence." 

It  was  the  declaration  of  1789  broadened  and  adapted  to  the 
wants  and  necessities  of  a  larger  national  life. 

It  meant  that  what  our  people  could  do,  they  should  have  the 
chance  to  do. 

It  meant  that  we  should  not  be  content  to  grow  cotton  and 
corn,  and  produce  food  and  raw  materials  for  foreign  nations, 
and  then  pay  tribute  to  them  for  the  finished  products.  It  meant 
that  industrial  independence  should  supplement  and  glorify  politi- 
cal freedom. 

From  the  day  of  its  birth  till  now  the  Republican  Party  has 
kept  that  faith,  never  wavering,  never  faltering,  but,  standing 
squarely  on  the  principle  of  protection  to  American  industry, 
it  has  dignified  labor,  established  and  maintained  the  best  wage 
scale  in  all  the  world,  and  with  it  a  distinctively  American  stand- 
ard of  living  and  American  home. 

Imbued  with  this  principle,  party  and  leaders  alike  have  stood 
together.  Lincoln,  Grant,  Hayes,  Garfield,  Harrison  and  McKin- 
ley,  and  when  William  McKinley  died  he  had  seen  the  battle 
fought  and  the  victory  won  at  home,  and  was  looking  out  into 
a  larger  field,  and  forward  to  still  greater  victories. 


"tariff  for  revenue  only"  means  death  to  protection. 

What  of  the  future?  To-day  the  issue  is  joined  again,  and  it 
is  protection  or  free  trade,  for  a  tariff  for  revenue  only  is  nothing 
but  free  trade  with  a  handicap,  an  actual  burden  upon  produc- 
tion with  all  protection  eliminated. 

The  phrase  "A  tariff  for  revenue"  means  nothing,  for  that  is 
one  of  the  purposes  of  all  tariffs,  but  "A  tariff  for  revenue  only" 
means  death  to  the  policy  of  protection.     Of  all  civilized  nations 


26  THE  TARIFF. 

Great  Britain  alone  now  has  a  tariff  for  revenue  only,  and  yet  of 
all  nations  Great  Britain  has  the  highest  average  rate  of  duty 
on  its  dutiable  imports  and  raises  far  more  per  capita  from  cus- 
toms revenue  than  the  United  States  does.  She  is  known  as  a 
free-trade  nation  and  the  United  States  as  a  protective  nation. 

The  distinction  is  not  found  in  the  rate  of  taxation,  but  in  the 
method  of  its  adjustment.  Great  Britain  has  very  high  rates  on 
a  very  few  things  and  everything  else  is  imported  free  of  duty. 
The  things  she  does  tax  are  not  produced  there,  or,  as  in  the 
case  of  spirits  and  beer,  the  duty  on  the  imported  article  is  offset 
by  an  internal  revenue  tax  on  the  domestic  production.  Her 
system  is  precisely  that  already  referred  to  as  demanded  by  the 
South  Carolina  Nullification  Convention,  by  the  Confederate  Con- 
gress and  npw  by  the  Democratic  platform  of  1912. 

Protection  is  not  possible  under  it. 


A  PROTECTIVE   TARIFF. 

A  protective-tariff  nation  puts  its  customs  taxes  on  those 
things  imported,  the  like  of  which  are  produced  within  its  own 
borders,  and  the  Republican  Party  in  1908  declared  that  the  true 
measure  of  such  protection  should  be  the  difference  in  the  cost 
of  production  at  home  and  abroad.  Where'  the  cost  of  production 
is  less  here,  or  where  there  is  no  difference,  or  when  the  like 
of  the  imported  article  is  not  or  cannot  be  produced  here,  the 
protective  policy  admits  it  free.  Under  the  operation  of  this 
principle  a  billion  dollars*  worth  of  foreign  products  came  into  our 
ports  last  year  without  paying  one  cent  of  tax  and  went  direct 
into  domestic  consumption. 

The  present  free  list  covers  chemicals  in  great  variety  and 
amount,  animals  for  breeding  purposes,  anthracite  coal,  coal  tar 
and  its  derivatives,  tea,  coffee  and  cocoa,  copper  and  tin,  cotton, 
drugs,  natural  and  uncompounded ;  all  fish  the  products  of  Amer- 
ican fisheries,  furs,  undressed ;  grease,  fats  and  oils ;  guano,  ma- 
nures, hides  and  hair  of  cattle,  india  rubber,  indigo,  ivory  tusks, 
licorice  root,  manganese  ore,  Brazil  nuts  and  cocoanute,  a  great 
variety  of  oils,  including  petroleum,  kerosene,  benzine,  naphtha  and 
gasoline ;  ores  of  gold,  silver  and  nickel ;  paper  stock,  phosphates, 
platinum,  raw  silk,  spices,  tar,  logs  and  round  timber,  pulp  wood, 
tropical  woods  in  great  variety,  fourteen  million  dollars'  worth 
of  bananas  last  year,  and  hundreds  of  other  things,  mostly  used 
as  raw  materials  in  every  conceivable  manufacturing  process. 

Under  the  present  law,  .the  free  list  last  year  covered  53.32 
per  cent,  of  all  of  our  importations,  and  during  the  entire  thirty- 
five  months  since  the  law  has  been  in  operation  the  average  of  free 
importations  has  been  51.2  per  cent,  of  all  imports,  or  greater 
than  ever  before  in  the  Nation's  history,  except  for  the  four  years 
with  free  sugar  under  the  McKinley  law. 

Of  our  total  importations,  46.68  per  cent,  was  taxed  at  the 
custom  house.  It  included  luxuries  and  certain  other  articles  the 
like  of  which  are  the  products  of  our  own  farms,  forests,  fac- 
tories and  mines. 

The  plain  purpose  of  the  duties  laid  upon  these  things  at  the 
custom  house  was  not  only  to  help  defray  the  expenses  of  main 
tainirig  the  Government,  but  to  give  to  our  own  people  a  fair 
reward  for  the  labor  employed  in  their  production  and  an  equal 
chance  with  foreign  producers  in  this  marketplace,  and  to  make 
this  Nation  self-reliant  in  all  things  where  with  our  climate,  soil 
and  skill,  industrial  independence  is  possible. 


THE  TARIFF  POLICY  AND  PLEDGE  OF  THE  REPURLICAN  PARTY. 

The  avowed  policy  of  the  Republican  Party  for  the  past  two 
years  lias  not  only  been  to  this  end,  but  it  has  voluntarily 
pledged  itself  to  the  American  people  to  submit  eaeh  and  every 
schedule  of  the  present  law  to  the  careful,  intelligent  and  patient 
investigation  of  a  permanent,  non-partisan,  independent  Tariff 
Board,  to  he  named  by  the  President  and  confirmed  by  the  Senate. 
and  to  adjust  the  rates  in  accordance  with  the  Republican  policy 
of  tine  protection,  and  in  the  light  of  the  facts  shown  by  such 
investigations. 


t  THE  TARIFT.  27 

Its  platform  declaration  for  1912  is  as  follows: 

We  reaffirm  our  belief  in  a  protective  tariff.  The  Republican 
tariff  policy  has  been  of  the  greatest  benefit  to  the  country,  de- 
veloping our  resources,  diversifying  our  industries  and  protecting 
our  workmen  against  competition  with  cheaper  labor  abroad, 
thus  establishing  for  our  wage-earners  the  American  standard 
of  living.  The  protective  tariff  is  so  woven  into  the  fabric  of 
our  industrial  and  agricultural  life  that  to  substitute  for  it  a 
tariff  for  revenue  only  would  destroy  many  industries  and  throw 
millions  of  our  people  out  of  employment.  The  products  of  the 
farm  and  of  the  mine  should  receive  the  same  measure  of  pro- 
tection as  other  products  of  American  labor. 

We  hold  that  the  import  duties  should  be  high  enough  while 
yielding  a  sufficient  revenue  to  protect  adequately  American  in- 
dustries and  wages.  Some  of  the  existing  import  duties  are  too 
high,  and  should  be  reduced.  Readjustment  should  be  made 
from  time  to  time  to  conform  to  changed  conditions  and  to 
reduce  excessive  rates,  but  without  injury  to  any  American  in- 
dustry. To  accomplish  this,  correct  information  is  indispensable. 
This  informaton  can  best  be  obtained  by  an  expert  commission, 
as  the  large  volume  of  useful  facts  contained  in  the  recent 
reports  of  the  Tariff  Board  has  demonstrated.  The  pronounced 
feature  of  modern  industrial  life  is  its  enormous  diversifications. 
To  apply  tariff  rates  justly  to  these  changing  conditions  requires 
closer  study  and  more  scientific  methods  than  ever  before.  The 
Republican  Party  has  shown  by  its  creation  of  a  Tariff  Board 
its  recognition  of  this  situation  and  its  determination  to  be  equal 
to  it.  We  condemn  the  Democratic  Party  for  its  failure  either 
to  provide  funds  for  the  continuance  of  this  board  or  to  make 
some  other  provision  for  securing  the  information  requisite  for 
intelligent  tariff  legislation.  We  protest  against  the  Democratic 
method  of  legislating  on  these  vitally  important  subjects  without 
careful  investigation. 

We  condemn  the  Democratic  tariff  bills  passed  by  the  House 
of  Representatives  of  the  Sixty-second  Congress  as  sectional,  as 
injurious  to  the  public  credit  and  as  destructive  of  business  en- 
terprise. 

MEANING   OF   THE   DEMOCRATIC   TAEIFF   PLEDGE   OF    1912. 

If  the  Democratic  Party  complies  with  its  platform  declaration 
that  the  "Federal  Government  under  the  Constitution  has  no  right 
or  power  to  impose  or  collect  tariff  duties  except  for  the  purpose 
of  revenue,"  it  must  do  one  of  two  things: 

First.  In  accordance  with  the  theory  of  John  C.  Calhoun  and 
the  South  Carolina  Convention,  it  must  transfer  the  entire  tariff 
tax  from  the  competitive  imports,  which  comprise  46.68  per  cent, 
of  the  whole,  to  the  imports  which  under  the  present  law  are 
free  of  duty,  and  which  comprise  53.32  per  cent,  of  the  whole 
In  this  case  every  cent  of  the  tax  would  be  added  to  the  cost 
of  the  imported  article  where  there  is  no  like  domestic  product 
to  control  the  price.  In  addition  to  that,  it  would  throw  open 
our  entire  domestic  production  to  the  unrestricted  competition 
of  the  product  of  much  lower  foreign  wages  and  consequent  lower 
standard  of  living,  for  the  46.68  per  cent,  of  competing  impor- 
tations which  now  constitute  the  dutiable  list  must  become  the 
free  list,  or  the  Democratic  Party  would  repudiate  its  own  plat- 
form. Or,  second,  accepting  the  modern  conception  of  tariff  for 
revenue  only,  first  make  duties  on  competitive  importations  at 
rates  clearly  below  the  protective  point  and  so  encourage  larger 
importations  at  the  expense  of  the  domestic  product.  Then  make 
up  deficiencies  in  revenue  by  extending  the  tax  over  the  free  list 
This  was  the  plan  adopted  by  the  Democratic  majority  in  the 
Sixty-second  Congress  in  revising  the  chemical  schedule.  In  that 
case  they  cut  the  duties  on  finished  competing  products  and  then 
put  a  duty  on  $41,667,000  worth  of  chemicals  which  were  free 
in  1911,  with  the  result  that  where  the  rate  on  the  same  articles 
averaged  14  per  cent,  under  the  Payne  law,  it  averaged,  under 
the  Democratic  conception  of  a  tariff  for  revenue  only,  16.66 
per  cgnt. 

If   the  bilj   had  become  a  law  it  would  have  increased  the 


28  THE  TARIFF. 

cost  of  the  imported  raw  materials  which  are  now  free  and 
hence  have  added  to  the  cost  of  the  finished  domestic  product 
At  the  same  time  it  would  have  opened  wide  the  door  into  this 
market  to  five  great  legalized  trusts  in  Germany  for  their  fin- 
ished products. 

This  proposition  was  put  through  the  House  of  Representatives 
under  the  dictation  of  the  Democratic  caucus,  controlled  abso- 
lutely by  the  votes  of  the  Southern  States,  as,  indeed,  all  tariff 
legislation  in  the  Sixty-second  Congress  has  been,  but  it  was 
too  radical  for  any  type  of  Republican  thought.  It  practically 
consolidated  Republican  opposition  in  the  House  and  was  finally 
defeated  by  a  united  Republican  vote  in  the  Senate. 


NO    HALF-WAY    HOUSE. 

With  Republican  protection  measured  by  the  difference  in  the 
unit  cost  of  foreign  and  domestic  production,  and  that  difference 
shown  by  an  independent,  non-partisan  Tariff  Board,  lower  duties 
than  that  can  only  mean  the  stoppage  and  transfer  of  some  of 
our  industries  abroad,  or  a  reduction  of  wages  and  other  condi- 
tions to  the  level  of  the  competing  foreign  producers,  so  that  it 
is  manifest  that  on  the  two  schedules  of  wool  and  cotton  upon 
which  reports  have  been  made  there  is  no  half-way  house  between 
English  free  trade  with  English  industrial  conditions,  or  else 
duties  based  upon  the  Tariff  Board  report,  which  will  equalize 
costs  and  at  least  maintain,  and  certainly  not  lower,  industrial 
conditions  here.  Disguising  a  lower  duty  by  calling  it  a  tariff 
for  revenue  only,  or  by  any  other  name,  does  not  alter  the  fact 
that  the  quality  of  the  product  being  equal,  the  cheaper  pro- 
ducer will  control  the  market. 

It  is  useless  to  discuss  the  efficiency  of  machinery  or  the  rela- 
tive superiority  of  foreign  or  domestic  labor,  for  all  of  this  is 
taken  into  account  by  the  Tariff  Board,  and  the  unit  cost  of 
the  unit  of  product  is  the  basis  upon  which  the  Board  has  made 
its  report 

\     •  DEMOCBATIO    WOOL    BILL. 

In  the  report  on  the  Wool  bill,  passed  through  the  House  by 
the  Democratic  majority,  they  say  "The  rates  of  duty  worked  out 
by  the  committee  were  fixed  without  any  reference  whatever  to 
protection."  That  is  undoubtedly  true,  for  by  their  own  esti- 
mate they  provided  for  an  increased  importation  of  wool  in  the 
grease  and  in  fabrics  of  nearly  two  hundred  million  pounds. 
This  could  only  result  in  the  substitution  of  foreign  for  domestic 
wool  by  a  like  amount.  Could  this  be  done  without  injury  to  the 
wool-growing  industry  in  the  United  States? 

The  Democratic  bill  looked  to  an  increase  of  importations  of 
$40,773,633  worth  of  foreign  woolen  fabrics.  As  the  total  im- 
portation for  1910  amounted  to  only  $23,057,357,  or  4.2  per  cent. 
of  the  home  consumption,  it  is  perfectly  clear  that  the  increase 
to  more  than  sixty  millions  meant  the  transfer  of  so  much  of 
the  industry  to  foreign  factories  and  the  labor  of  25,000  men 
needed  to  produce  it  taken  away  from  our  people.  And  this  result 
was  to  be  achieved  with  a  net  loss  of  revenue  of  $1,348,349. 

So  much  for  a  Democratic  wool  schedule  in  the  first  session 
of  the  Sixty-second  Congress,  based  on  guess-work  months  before 
the  Tariff  Board  report  was  made,  and  persisted  in  in  the  sec- 
ond session  as  a  tariff  for  revenue,  in  utter  disregard  of  the 
board's  report  submitted  to  Congress  in  December,  1911. 


REPUBLICAN    WOOL  BILL. 

The  Republican  members  of  the  Ways  and  Means  Committee 
presented  a  substitute  bill  which  received  the  united  support  of  the 
Republican  Representatives.  It  was  based  squarely  on  the  re- 
port of  the  Tariff  Board,  and  was  in  accord  with  the  facts  found 
after  an  investigation  of  the  industry  throughout  the  world,  made 
by  the  best  experts  that  could  be  found,  an  investigation  costing 
a  quarter  of  a  million  dollars  and  two  years'   time  of  a  large 


I  -THE  TARIFF.  29 

force  of  men,  and  resulting  in  a  unanimous  report  of  a  board  con- 
sisting of  three  Republicans  and  two  Democrats. 

They  were : 

Henry  C.  Emery,  Professor  of  Economics,  Yale  University. 

Alvin  H.  Sanders,  editor  of  The  Breeders'  Gazette. 

James  B.  Reynolds,  ex-Assistant  Secretary  of  the  Treasury. 

William  M.  Howard,  ex-Member  of  Congress  from  Georgia. 

Thomas  W.  Page,  Professor  of  Economics,  University  of  Vir- 
ginia. 

First,  the  board  had  shown  the  utter  absurdity  of  the  claim  in 
the  Democratic  report,  that  the  entire  domestic  product  was  in- 
creased in  price  by  the  amount  of  the  duties,  and  that  96  per 
cent,  of  domestic  consumption  was  controlled  by  the  4  per  cent, 
of  importations. 

They  had  shown  that  domestic  competition  had  forced  home 
prices  down  to  and  in  many  cases  below  the  difference  in  the 
unit  cost  of  the  product,  and  that  many  of  the  existing  rates  of 
duty  were  useless,  unnecessary  and  ineffective  for  protective 
purposes. 

On  this  subject  the  board  said  as  follows : 

"On  the  other  hand  prices  in  this  country  on  the  fabrics  just  re- 
ferred to  are  not  increased  by  the  full  amount  of  the  duty.  A 
collection  of  representative  samples  was  made  in  England  of  goods 
ranging  from  those  which  cannot  be  imported  at  all  to  those  which 
are  imported  continually.  These  were  then  matched  with  a  collec- 
tion of  samples  of  American-made  cloths,  which  were  fairly  com- 
parable, and  the  mill  prices  compared  for  the  same  date.  It  is 
found  that  on  goods  entirely  excluded  the  nominal  rates  of  duty 
would  reach  an  ad  valorem  rate  of  150  or  even  over  200  per  cent., 
but  that  the  American  fabric  is  actually  sold  in  the  market  at 
from  only  60  to  80  per  cent,  higher  than  similar  goods  sold  abroad. 
On  sixteen  samples  of  foreign  goods;  for  instance,  none  of 
which  are  imported,  the  figures  are  as  follows : 

Total  of  foreign  prices $41.84 

Duties  which  would  have  been  assessed  had  they 

been  imported    76.90 

Foreign  price,  plus  the  duty,  if  imported 118.74 

Actual  domestic  price  of  similar  fabrics 69.75 

Thus,  though  the  nominal  duties  on  such  fabrics  equal  184  per 
cent,  the  actual  excess  of  the  domestic  price  over  the  foreign 
price  on  similar  fabrics  of  this  kind  is  about  67  per  cent.  This 
is  the  result  of  domestic  competition." 

The  excessive  duties  were  at  once  discarded  and  the  new  bill 
was  based  on  the  difference  in  conversion  cost  as  ascertained  by 
the  Tariff  Board. 

Second,  the  board  had  shown  that  the  compensatory  duties  on 
the  wool  imported  in  the  fabric  were  greater  than  would  have 
been  collected  if  the  wool  required  to  make  the  fabric  had  been 
imported  in  the  raw  state,  and  that  a  pound  rate  on  wool  had 
applied  to  the  entire  weight  of  the  fabric,  including  the  cotton  or 
other  material  contained  therein. 

The  compensatory  rates  ascertained  by  factory  tests  made  by 
the  board  were  at  once  accepted  precisely  as  reported,  and  made 
to  apply  only  to  the  wool  contained  in  the  imported  fabric.  The 
other  practice  of  years  is  still  unchanged  in  the  Democratic  bill. 

Third,  the  board  had  shown  that  carpet  wool,  which  constituted 
60  per  cent,  of  all  wool  imported,  was  no  longer  produced  in  this 
country,  and  was,  therefore,  a  non-competitive  importation. 

It  was  at  once  made  practically  free,  by  a  drawback  of  99 
per  cent.,  of  the  duty  when  used  in  carpet  manufacture,  and  the 
duty  on  the  finished  carpets  was  reduced  by  *  more  than  one-half 
accordingly.  The  Democratic  bill  continued  a  duty  of  20  per  cent, 
on  carpet  wool  for  revenue  purposes. 

With  these  and  other  changes  the  rate  on  Schedule  K,  as  a 
whole,  in  the  Republican  bill  was  made  materially  lower  than  the 
Democratic  so-called  revenue  bill,  and  yet  by  a  fair  and  just  appli- 
cation of  rates  on  competitive  importations  only,  based  upon  the 
Tariff  Board  Report,  it  was  kept  protective  in  every  item. 


30  THE  TARIFF. 


THE  COTTON    SCHEDULE. 


As  on  wool,  so  on  cotton,  the  Democratic  bill  was  purely  guoss- 
work,  reported  and  passed  on  a  vote  of  a  Democratic  caucus. 
Neither  bill  ever  had  a  public  hearing,  and  both  were  the  outcome 
of  private  conferences  between  Democratic  members  and  interested 
parties,  with  no  opportunity  for  cross-examination  by  Republican 
members  of  the  committee.  This  was  in  direct  contrast  with  the 
procedure  in  preparing  the  Payne  bill  three  years  ago,  when  eight 
thousand  printed  pages  of  testimony  was  taken  in  public  hearings 
in  the  presence  of  manufacturers,  importers,  consumers  and  before 
the  full  committee. 

When  the  Democratic  bill  was  before  the  House,  Mr.  Hinds,  of 
Maine,  asked  Mr.  Underwood  if  it  was  a  fact  that  the  bill  left  out 
entirely  the  principle  of  protection,  and  he  replied:  "Absolutely 
so  far  as  my  knowledge  is  concerned."  It  was  well  adapted  to 
its  purpose  as  enunciated  by  a  Congressman  from  North 
Carolina,  when  he  said :  "We,  in  the  South,  intend  to  make  New 
England  mills  come  and  put  their  mills  in  the  South  or  else  go 
out  of  business."  Without  regard  to  merit,  or  necessity  for  pro- 
tection, it  put  unnecessarily  high  duties  on  plain  woven  low-grade 
products,  the  principal  product  of  one  section  of  the  country  and 
low  duties  on  high-grade  cloths  and  knit  goods,  the  special  prod- 
ucts of  other  sections. 

The  sum  and  substance  of  it  was  high  duties  and  no  revenue 
from  the  cloth  fabrics  used  by  the  poor ;  on  the  fine  knit  fabrics, 
used  by  the  rich,  low  duties,  large  revenues  and  a  young  and 
growing  industry  strangled. 

The  report  of  the  Tariff  Board  on  the  Cotton  Schedule  was  a 
revelation  to  the  whole  world,  except  the  Democratic  members  of 
the  Ways  and  Means  Committee  who  promptly  repudiated  it  and 
reintroduced  in  the  Second  Session  of  the  Sixty-second  Congress 
the  identical  bill  which  had  been  the  product  of  guesswork  the 
year  before. 

Again,  as  on  the  wool  bill,  the  Republican  vote  of  the  House 
of  Representatives  was  united  in  favor  of  a  revision  of  the  Cotton 
Schedule  made  in  accordance  with  the  report  of  the  Tariff  Board 
and  in  co-operation  with  its  members  and  experts. 

The  Republican  bill  showed  a  reduction  of  taxation  on  the 
schedule  as  a  whole,  very  considerably  below  the  Democratic  bill, 
but  by  the  adjustment  of  rates  on  more  or  less  competitive  im- 
portations, according  to  the  facts  shown  in  the  board's  report,  the 
principle  of  protection,  based  on  the  difference  in  cost  of  produc- 
tion, was  maintained  as  to  every  item  in  it. 

The  report  in  this  case,  as  on  wool,  showed  the  effective  power 
of  domestic  competition  when  unhampered  and  uncontrolled  by 
combinations  to  regulate  the  domestic  selling  price  of  the  products 
of  a  developed  industry,  and  fully  justified  the  removal  of  duties 
which  had  been  necessary  in  the  formative  period  of  cotton  manu- 
facturing, but  which  now  have  become  inoperative,  both  as  to 
maintaining  prices  or  preserving  markets.  It  was  a  clear  demon- 
stration of  the  benefits  of  the  protective  policy  to  the  consumer 
and  producer  alike. 


PROTECTION    VS.    REVENUE    ONLY. 

Comparison  of  the  Tariff  Board  schedules  on  wool  and  cotton 
presented  by  the  Republicans  in  the  House,  with  the  Chemical 
Schedule  for  revenue  only  presented  by  the  Democrats  t()  which 
reference  has  previously  been  made,  proves  the  irreconcilable  con- 
flict between  the  two  tariff  systems. 

Under  the  protective  policy,  as  illustrated  in  the  wonderful 
progress  of  the  cotton  industry  as  domestic  costs  are  lessened,  it 
follows  that  the  free  list  of  finished  products  can  be  gradually 
enlarged  or  tariffs  materially  reduced,  and  at  the  same  time  the 
American  wage  scale  and  standard  of  living  maintained,  or 
what  is  better  yet,  tariffs  reduced  in  part  and  a  higher  wage 
scale  and  better  standard  of  living  made  possible  for  the  men  and 
women  employed  in  industrial  pursuits. 


THE  TARIFF.  31 

Under  the  "revenue  only"  policy,  with  raw  materials  increased 
in  cost  by  a  revenue  duty  and  with  rates  on  the  finished  product 
cut  below  the  difference  in  cost  of  production,  there  is  no  possible 
place  from  which  that  reduction  can  come  except  from  the  wages 
of  labor. 

It  is  not  a  question  of  the  amount  of  taxation,  for  in  the 
aggregate  that  must  be  the  same  in  either  case  for  the  expenses 
of  government  must  be  met.  It  is  simply  and  solely,  whether  in 
applying  those  taxes,  it  shall  be  done  in  such  a  way  as  to  en- 
courage and  develop  our  own  industries  or  the  industries  of 
Europe. 

It  is  whether  we  shall  make  life  better,  and  better  worth  living 
here,  or  sacrifice  our  own  people  to  the  uplifting  of  the  people  of 
other  lands. 

It  is  a  question  of  plenty  of  work  and  good  wages,  or  no  work 
or  low  wages,  and  it  is  for  the  American  people  to  decide  which 
of  these  policies  they  wish  to  apply  to  themselves. 


PROGBESS  OF  PBOTECTION. 

No  man  better  understood  the  fundamental  meaning  of  the 
protective  policy  than  William  McKinley,  and  his  last  public 
declaration  of  vision  and  prophecy  at  Buffalo,  on  September  5, 
1901,  was  an  inspiration  to  the  American  people  for  a  change  of 
methods,  but  an  adherence  to  the  principle  of  protection  for 
which  he  had  fought  for  a  lifetime. 

He  said: 

"We  have  a  vast  and  intricate  business  built  up  through  years 
of  toil  and  struggle,  in  which  every  part  of  the  country  has  its 
stake,  which  will  not  permit  of  either  neglect  or  undue  selfishness. 
No  narrow,  sordid  policy  will  subserve  it.  The  greatest  skill  and 
wisdom  on  the  part  of  manufacturers  and  producers  will  be  re- 
quired to  hold  and  increase  it.  Our  industrial  enterprises  which 
have  grown  to  such  great  proportions  affect  the  homes  and  occu- 
pations of  the  people  and  the  welfare  of  the  country.  Our 
capacity  to  produce  has  developed  so  enormously  and  our  products 
have  so  multiplied  that  the  problem  of  more  markets  requires  our 
urgent  and  immediate  attention.  Only  a  broad  and  enlightened 
policy  will  keep  what  we  have.  No  other  policy  will  get  more. 
In  these  times  of  marvelous  business  energy  and  gain  we  ought  to 
be  looking  to  the  future,  strengthening  the  weak  places  in  our 
industrial  and  commercial  systems,  that  we  may  be  ready  for 
any  storm  or  strain.  .  .  .  The  period  of  exclusiveness  is  past. 
The  expansion  of  our  trade  and  commerce  is  the  pressing  problem. 
.  .  .  If  perchance  some  of  our  tariffs  are  no  longer  needed  for 
revenue  or  to  encourage  and  protect  our  industries  at  home,  why 
should  they  not  be  employed  to  extend  and  promote  our  markets 
abroad?" 

With  uplifted  hand  and  solemn  vow,  Theodore  Eoosevelt 
pledged  himself  to  the  American  people  *to  continue  the  policies 
of  his  martyred  predecessor,  but  new  issues  were  brought  to 
the  front,  and  for  three  and  one-half  years  no  action  was  taken 
looking  toward  "new  markets  and  the  expansion  of  our  trade 
and  commerce." 

In  1904  the  Republican  Party  declared  "its  belief  in  the  adop- 
tion of  all  practical  methods  for  the  further  extension  of  our 
foreign  markets,  and  intrusted  this  great  question  to  the  Presi- 
dent and  Congress,"  but  again  new  issues  were  raised  and  the 
political  energies  and  activities  of  the  people  were  turned  in  other 
directions. 

In  1908  the  Republican  Party  declared  unequivocally  for  tariff 
revision  and  fixed  the  date,  and  under  the  leadership  of  William 
Howard  Taft  began  this  work.  Three  years  have  passed  and  in 
the  clear  light  of  actual  results  the  measure  of  that  work  can 
now  be  taken  by  the  comparison  with  other  legislation,  which  is 
here  submitted  and  following  that  by  a  showing  of  the  operations 
of  the  Dingley  law  for  its  last  two  years,  and  of  the  Payne  law 
from  its  enactment  to  July  1,  1912. 


32 


THE  TARTFF. 


Comparison  of  Tariffs. 

Imports  of  merchandise  into  the  United  States,  showing  the 
percentage  thereof  free  of  duty,  customs  receipts,  and  aver- 
age ad  valorem  rate  of  duty,  during  the  35  months'  opera- 
tion of  the  Payne  Tariff  Law,  August  5,  1009,  to  June  30, 
1912,  compared  toith  like  results  under  the  entire  operation 
of  the  McKinley,  Wilson,  and  Dingley  Tariffs,  respectively : 


Imports. 

Per 

cent 
free. 

Customs 
receipts. 

Average 
ad  valorem  on- 

Entire  period  of — 

Free. 

Dutiable 

Total. 

Dutiable 

Total 
imports. 

McKinley   Law. 

(a)  47  months 

Monthly    average 

Million. 

$1,642.1 

34.9 

Million. 

$1,454.0 

30.9 

Million. 

$3,096.0 

65.8 

53.0 

Million. 

$684.8 

14.6 

Per  cent 
47.1 

Per  cent 
22.1 

Wilson  Law. 

(b)  35  months 

Monthly    average 

1,060.4 
30.9 

1,132.7 
32.4 

2,213.1 
68.3 

48.8 

485.0 
13.9 

42.8 

21.9 

Dingley  Law. 

(c)   144  months 

Monthly    average 

5,428.5 
37.7 

6,821.5 
47.4 

12,250.0 
85.1 

44.8 

8,121.8 
21.7 

45.8 

25.5 

Payne  Law. 

(d)  35  months 

Monthly    average 

2,368.2 
67.7 

2,256.9 
64.5 

4,625.1 
132.2 

51.2 

928.8 
26.5 

41.2 

20.1 

(a)  Includes  October  1  to  5,  1890,  under  Act  of  1883;  and  August  28  to  31,  1894, 

under  Act  of  1894. 

(b)  Excludes  last  four  days  of  August,  1894,  included  under  McKinley  Law,  and 

includes  July  24  to  31,  1897,  under  Act  of  1897. 

(c)  Excludes  last  eight  days  of  July,  1897,  included  under  Wilson  Law;  excludes 

August  1  to  5,  1909,  included  under  Payne  Law. 

(d)  Includes  August  1  to  5,  1909,  under  Act  of  1897. 

NOTE.— A  reduction  of  about  $55,000,000  was  caused  in  customs  receipts  under 
the  McKinley  Act,  due  to  reduced  imports  in  the  closing  months  under  that  Act 
in  anticipation  of  passage  of  Wilson  Tariff,  whose  revenues  were  correspondingly 
increased.  Likewise  a  reduction  of  about  $45,000,000  was  caused  in  customs 
receipts  under  the  Dingley  Law,  due  to  heavy  imports  in  the  closing  months 
under  the  Wilson  Law,  whose  revenues  were  correspondingly  increased.  The 
high  percentage  of  free  imports  under  the  McKinley  Law  was  largely  due  to  the 
fact  that  under  that  Act  sugar  was  on  the  free  list.  Of  merchandise  other  than 
sugar  imported  under  the  McKinley  Law,  39.56  per  cent  was  free  of  duty. 

Department  of  Commerce  and  Labor,  — 

Bureau  of  Statistics, 
July  15,  1912. 


Dingley  Law,  1908,  1909.       Payne  Law,  1910,  1911,  1912. 


A 

Average 

© 

is 

ad  val- 

orem rate 

a 

D 
>-» 

1 

9 

i| 

m 

o 

s 

■ 
g 

o 

of  duty 
on— 

I 

s 
s 

33 

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4) 

a 
i 

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3 

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3 

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o 

4-> 

an 

V 

o 

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^ 

3 

i 

£€ 

8 

Dollars. 

Dollars. 

Dollars. 

Per 

cent. 

Dollars. 

Per 
cent. 

Per 
cent. 

Dollars. 

1908 

1,860,773,346 

1,194,341,792 

525.6O3.30SM4.O1 

668,738,484 

42.78  23.96  286,113,130 

1909 

1,663,011,104 

1,311.920,224 

599,550,639  45.70 

712,363,585 

42.21  22.92  300,711,934 

1910 

1,744,984,720 

1,556,947,430 

755.311,396  48.53 

801,636,034 

41.63!21.43i333,683,445 

1911 

2,049,820,195 

1,527,226,105 

776,972,509  50.87 

750,258,586 

41. 92^20. 59:314, 497, 071 

1912 

2,204,222,088 

1,653,426,174 

881,743,144  53.32 

771.6S3.030 

40.34118.82  311,257,348 

THE  TARIFF.  !  '■>  33 

What  are  the  results? 

Never  but  two  years  in  the  whole  history  of  the  Nation  has 
the  percentage  of  free  importations  been  as  great  as -in  the  fiscal 
year  of  1912,  and  those  two  years  were  with  free  sugar  under  the 
McKinley  law. 

Never  but  five  years  in  our  history  has  the  rate  of  duty  on 
all  importations  been  as  low  as  in  1912. 

Never  in  any  year,  since  the  beginning  of  the  Civil  War,  in  1861, 
when  governmental  expenses  were  enormously  increased,  has  the 
rate  of  duty  on  all  importations  been  as  low  as  in  1912. 

That  rate  for  the  year  1912  is  18.82  per  cent.,  which  is  less 
than  the  rate  for  the  entire  period  of  the  Dingley  law  by  26.1  per 
cent.,  less  than  that  of  the  Wilson  law  by  14.06  per  cent,  and  less 
than  that  of  the  McKinley  law,  even  with  free  sugar,  by  14.8  per 
cent. 

Never  since  the  close  of  the  Civil  War  has  any  year  shown 
so  low  a  rate  on  dutiable  importations  only  as  1912,  except  in 
1873  and  1874  under  a  Republican  tariff,  and  in  1896  under  a 
Democratic  one. 

The  rate  on  dutiable  importations  only,  for  1912,  was  40.34  per 
cent,  which  was  11.9  per  cent,  less  than  for  the  whole  period  of 
the  Dingley  law,  5.7  per  cent,  less  than  the  Wilson,  and  14.3  per 
cent,  less  than  the  McKinley  law. 


MAXIMUM    AND   MINIMUM    SYSTEM. 

Under  the  maximum  and  minimum  system  of  rates  provided  for 
the  first  time  in  our  history,  by  the  Payne  bill,  President  Taft  at 
once  began  negotiations  with  all  of  the  commercial  nations  of  the 
world  for  the  admission  of  our  products  into  their  market  places 
on  equal  terms  with  other  countries,  and  in  1912  this  Nation  sold 
abroad  $2,204,224,088  worth  of  its  products,  as  against  $1,663,- 
011,104  worth  in  1909,  an  increase  of  $541,210,984. 

In  1912  we  bought  from  other  nations  $1,653,426,174  worth  of 
their  products,  as  against  $1,311,920,224  worth  in  1909,  an  increase 
of  $341,505,950. 

Including  the  trade  of  the  Philippines,  Porto  Rico  and  Hawaii, 
the  foreign  trade  of  the  United  States  for  1912  will  total  more 
than  four  billions  of  dollars,  and  of  the  importations  more  than 
one  billion  dollars  worth  went  straight  to  the  consumer  without 
one  cent  of  tax  upon  it. 

The  prophecy  of  William  McKinley  is  being  fulfilled,  and  the 
"period  of  exclusiveness  is  past." 

Under  the  Payne  Bill  the  Customs  Court  was  established,  by 
which  speedy  and  economical  adjustment  of  all  disputed  customs 
questions  are  now  made. 


TARIFF  BOARD. 

But  more  than  all  and  inaugurating  a  new  system  of  tariff- 
making,  the  Payne  Bill  provided  for  a  Tariff  Board,  at  first  a 
partisan  body,  named  to  assist  the  President  in  instituting  the 
maximum  and  minimum  tariff  system.  It  was  promptly  followed 
by  a  demand  from  the  business  organizations  of  the  country  for 
the  establishment  of  a  non-partisan,  permanent  Tariff  Com- 
mission, to  be  appointed  by  the  President  and  confirmed  by  the 
Senate.  Men  of  all  shades  of  political  opinion,  with  commercial, 
industrial  and  agricultural  associations,  united  in  the  request,  and 
a  Republican  House  and  Senate  gave  it  hearty  support,  but  the 
proposition  was  defeated  by  a  Democratic  filibuster  in  the  closing 
hours  of  the  Sixty-first  Congress. 

William  Howard  Taft  at  once  met  the  situation  by  adding  two 
Democrats  to  the  Tariff  Board  of  three  Republicans  previously 
named,  and  it  is  from  this  board  of  five  men  that  the  two  unani- 
mous reports  on  the  cotton  and  wool  schedules  have  come,  and 
upon  and  in  accordance  with  which  revision  of  both  schedules  has 
been  attempted  by  the  Republicans  and  defeated  by  the  Democrats 
in  the  House  of  Representatives, 


34  THE  TARIFF. 

It  Is  under  such  a  system  that  the  tariffs  of  Europe  are  now 
made.  Germany  went  twenty-seven  years,  from  1879  to  1906, 
without  a  general  tariff  revision.  Meanwhile  trade  agreements 
with  other  nations  and  many  single  changes  were  made. 

Great  Britain  has  had  no  general  tariff  revision  in  sixty-six 
years,  but  single  changes  have  been  made  almost  every  year  as  a 
part  of  the  financial  budget. 

France  went  eighteen  years  without  a  general  revision,  and 
during  that  time,  under  the  supervision  of  a  tariff  commission, 
thirty-eight  separate  acts  affecting  three  hundred  and  forty-eight 
rates  were  passed,  and  the  business  interests  of  France  never 
knew  it  so  far  as  any  commercial  disturbance  was  concerned.  It 
ought  to  be  so  here,  and  would  be  with  an  independent,  non- 
partisan, permanent  tariff  commission,  such  is  the  Republican 
Party  has  declared  for  in  its  platform,  and  which  the  Democratic 
Party  has  repudiated,  even  starving  to  death  the  present  Tariff 
Board  by  refusing  any  appropriation  in  this  Congress  for  its  con- 
tinuance. In  the  United  States  we  have  had  four  general  tariff 
revisions  in  twenty  years,  and  now  in  a  time  of  marked  pros- 
perity, with  the  promise  of  abundant  crops,  with  an  expanding 
domestic  trade  and  a  foreign  commerce  increasing  by  leaps  and 
bounds,  a  fifth  revision  is  demanded  by  the  Democratic  Party, 
with  the  distinct  announcement  that  the  protective  policy  of  ^fifty 
years  shall  be  reversed  on  the  ground  that  this  great  Nation  has 
no  constitutional  right  or  power  to  adjust  its  own  system  of  taxa- 
tion to  the  rule  laid  down  by  Andrew  Jackson,  that  "the  duties 
upon  articles  of  foreign  growth  and  manufacture  should  be  so 
applied  as  to  place  our  own  in  a  fair  competition  with  those  of 
other  countries." 

Over  against  this  is  the  solemn  pledge  of  William  Howard  Taft 
in  accepting  the  Republican  nomination  for  the  presidency  in  the 
White  House  in  Washington,  on  August  1,  1912. 

"The  American  people  may  rest  assured  that  should  the  Re- 
publican Party  be  restored  to  power  in  all  legislative  branches  all 
the  schedules  in  the  present  tariff,  of  which  complaint  is  made, 
will  be  subjected  to  investigation  and  report  by  a  competent  and 
impartial  tariff  board,  and  to  the  reduction  or  change  which  may 
be  necessary  to  square  the  rates  with  the  facts." 

Between  these  two  policies  and  the  inevitable  results  of  each, 
the  American  people  must  choose  in  the  coming  election. 


THE    DEMOCRATIC    TARIFF    MEASURES    OF    1911-12. 

At  the  beginning  of  the  Sixty-second  Congress  Democratic 
leaders  assured  the  country  that  no  tariff  legislation  would  be 
attempted   which   would   injure   any   legitimate   industry. 

At  it«  close,  with  full  knowledge  of  what  had  been  attempted, 
their  candidate,  in  his  speech  of  acceptance,  says : 

It  Is  obvious  that  the  changes  we  make  should  be  made  only  at  such 
a  rate  and  in  such  a  way  as  will  least  interfere  with  the  normal  and 
healthful  course  'of  commerce  and  manufacture ;  but  we  shall  not  on 
that  account  act  with  timidity,  as  if  we  did  not  know  our  own  minds, 
for  we  are  certain  of  our  ground  and  of  our  object. 

These  are  the  promises.     What  is  the  performance  thus  far? 

A  change  to  absolute  free  trade  on  industries  represented  by 
10,104  establishments,  using  capital  to  the  amount  of  $4,450,- 
735,803,  employing  1,374,333  wage  earners,  to  whom  $676,460,220 
of  wages  are  annually  paid,  and  now  turning  out  annually 
$5,566,198,340  worth  of  American  products. 

In  addition  the  avowed  elimination  of  protection  and  a 
reduction  to  a  basis  of  "revenue  only"  on  other  industries  repre- 
sented by  131,100  establishments,  using  capital  to  the  amount  of 
$7,734,385,889,  employing  2,821,614  wage  earners  to  whom 
$1,461,911,295  of  wages  are  annually  paid,  and  now  turning 
out  annually  $7,996,111,987  worth  of  American  products. 

The  total  of  the  manufactures  of  the  United  States,  as  shown 
by  the  Census  of  1910.  was  20  billion  dollars.  Here  is  a  cold 
proposition   from  the  Democratic  Party,  as  the  very  first  work 


THE  TARIFF.  35 

of  its  Democratic  House  of  Representatives,  to  absolutely  remove 
all  duties  on  merchandise  entering  the  country  in  direct  com- 
petition with  5y2  billion  dollars'  worth  of  our  manufactures, 
and  to  also  remove  all  protective  features  of  the  duty  on  other 
articles  competing-  with  another  8  billion  dollars'  worth  of  our 
manufactures.  This  makes  13%  billion  dollars'  worth  of  our 
manufactures,  or  two-thirds  of  the  total  product  of  our  manu- 
facturing establishments,  which  it  is  proposed  to  expose  to  the 
full  competition  of  all  the  world,  either  by  removing  all  duty,  or 
reducing  the  duty  to  a  "revenue  only"  basis. 

The  so-called  "Farmers'  Free  List"  bill  alone  removed  all 
duties  on  articles  of  which  the  production  in  the  United  States 
amounts  to  nearly  five  billion  dollars  per  annum,  and  gives 
employment  to  one  million  three  hundred  thousand  persons, 
whose  wages  amount  to  six  hundred  and  fifty  million  dollars 
per  annum.  The  number  of  establishments  producing  the 
articles  which  this  bill  proposed  to  expose  to  the  unrestricted 
competition  of  the  cheap  labor  of  the  world  is  more  than 
•ten  thousand,  and  the  invested  capital  more  than  four  billion 
dollars. 

Of  the  iron,  steel,  and  other  metal  products,  represented  by 
Schedule  C  of  the  tariff  law,  which  the  Democratic  tariff  re- 
form measure  proposes  to  reduce  to  a  "tariff  for  revenue  only" 
basis,  the  annual  products  in  the  United  States  exceed  four  and 
a  half  billion  dollars  in  value,  employing  nearly  one  and  a  half 
million  persons,  paying  over  nine  hundred  million  dollars  in 
wages,  and  having  invested  capital  of  nearly  five  billion  dollars. 

Of  tne  articles  included  in  the  cotton  schedule,  on  which  the 
Democratic  bill  proposed  to  reduce  to  a  "tariff  for  revenue  only" 
basis,  the  annual  manufacture  in  the  United  States  amounts  to 
nearly  one  and  a  half  billion  dollars  in  value,  the  wage  earners 
three  quarters  of  a  million  in  number,  the  annual  wages  paid 
more  than  three  hundred  million  dollars,  and  tne  invested  capital 
one  and  a  third  billion  dollars. 

Of  the  articles  included  in  the  wool  schedule,  likewise  re- 
duced to  a  "tariff  for  revenue  only"  basis,  the  value  of  the 
annual  product  in  the  United  States  is  considerably  more  than 
one  billion  dollars,  the  number  of  persons  employed  nearly  a 
half  million,  and  their  annual  wages  more  than  two  hundred 
million  dollars. 

Of  the  articles  included  in  the  chemical  schedule,  also  re- 
duced to  a  "tariff  for  revenue  only"  basis,  the  value  of  the  prod- 
ucts in  the  United  States  is  over  eight  hundred  million  dollars, 
the  number  of  wage  earners  over  one  hundred  thousand,  and 
the  wages  about  fifty-five  million  dollars  per  annum. 

When  we  reflect  that  the  total  value  of  all  the  manufactures 
of  the  country  is  but  about  20  billion  dollars,  and  that  the  Demo- 
cratic Party  has  passed  bills  removing  protection  from  13y2  bil- 
lion dollars'  worth  of  manufactures,  or  two-thirds  of  the  entire 
manufactured  product  of  the  country,  we  can  see  how  com- 
pletely our  manufacturers  must  expect  to  face  foreign  competi- 
tion without  the  slightest  degree  of  protection  in  case  of  the 
election  of  a  Democratic  President  and  Congress  in  1912. 

President  Taft  has  stood  like  a  rock  against  tariff  measures 
which  reduced  the  duty  below  a  point  which  will  afford  a  reason- 
able profit  to  our  manufactures,  interposing  veto  after  veto  to 
save  them  from  destruction,  but,  with  a  free  trade  or  "tariff 
for  revenue  only"  President  in  the  White  House,  and  that  ele- 
ment in  control  of  both  branches  of  Congress,  the  manufacturers 
of  the  country  and  their  millions  of  employees  may  expect  that 
the  last  shred  of  protection  will  be  swept  awayv 

In  view  of  these  facts  the  American  people  are  commended 
to  a  prayerful  consideration  of  Luke,  chapter  23,  verse  31,  which 
reads : 

For  if  they  do  these  things  in  a  green  tree,  what  shall  be  done  in  the 
dry? 

(See  tables  pages  36,  37.) 


36 


THE  TARIFF. 


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THE  TARIFF. 


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38  THE  TARIFF. 

BRIEF  HISTORY  OF  THE  TARIFFS   OF  THE  UNITED   STATES. 

Protection  to  American  labor  and  industry,  the  chief  issue 
between  the  two  great  parties  to-day,  was  one  of  the  leading 
motives  which  led  to  the  Constitution — in  fact,  said  Webster, 
"Without  that  provision  in  the  Constitution  it  never  could  have 
been  adopted."  It  is  not  to  be  wondered  at  then  that  the  first 
revenue  law  placed  upon  our  statute  books  provided  for  the 
encouragement  and  protection  of  manufacturers.  While  the  list 
of  articles  enumerated  was  small  as  compared  to  the  extended 
schedule  of  to-day,  yet  the  law  was  found  to  be  most  effective 
in  inaugurating  an  industrial  policy  and  an  industrial  advance, 
which  has  continued  with  more  or  less  force  and  with  compara- 
tively few  interruptions  to  the  present  day.  This  first  tariff 
law  continued  without  material  change  until  1812,  when  the 
rates  of  duty  were  doubled,  largely  in  order  to  obtain  additional 
revenue  with  which  to  carry  on  the  war  with  Great  Britain 
then  in  progress.  The  increase  in  tariff  rates,  coupled  with  the 
prohibitions  of  non-intercourse,  threw  us  on  our  resources  and 
resulted  in  the  establishment  of  many  new  industries,  which, 
in  spite  of  the  ravages  of  war,  brought  immense  increase  of 
national  wealth  and  business  activity. 

In  a  special  message  to  Congress,  February  20,  1815,  President 
Madison  asked — 

"Deliberate  consideration  of  the  means  to  preserve  and  promote  the 
manufactures  which  have  sprung  into  existence  and  attained  an  unparal- 
leled maturity  throughout  the  United  States  during  the  period  of  the 
European  wars." 

I  The  law  of  1812  terminated  on  February  17,  1816,  by  its  own 
provision,  one  year  after  the  ratification  of  the  Treaty  of  Ghent. 
Fearing  that  the  duties  existing  before  the  war  would  not  afford 
sufficient  protection  to  the  newly  established  industries,  it  was 
the  determination  of  the  leaders  of  the  time  that  those  duties 
should  be  increased  in  the  new  law  of  1816,  and  the  intention 
was  to  make  the  tariff  a  thoroughly  protective  one ;  yet  it  proved 
a  failure,  as  the  framers  of  that  tariff  had  not  anticipated  the 
inundation  of  goods  with  which  our  country  would  be  flooded 
from  abroad  and  particularly  from  England  because  of  the 
stocks  that  had  accumulated  there  for  several  years.  We,  there- 
fore, experienced  our  first  great  industrial  depression,  which 
lasted  until  1824,  when  the  first  thoroughly  protective  tariff  law 
was  enacted,  by  which,  in  the  words  of  the  late  President  Mc- 
Kinley :  "The  nation  was  quickened  into  new  life,  and  the  entire 
country  under  the  tariff  moved  on  to  higher  triumphs  in  indus- 
trial progress,  and  to  a  higher  and  better  destiny  for  all  of  its 
people."  In  1828  still  higher  duties  were  substituted.  The  op- 
eration of  the  law  brought  great  dissatisfaction  in  the  South, 
and  led  to  the  compromise  tariff  of  1832,  which  provided  for  a 
gradual  reduction  every  two  years  until  only  20  per  cent  should 
remain.  Long  before  the  final  reduction,  however,  the  panic  of 
1837  came  upon  the  country,  bringing  disaster  on  every  hand 
and  the  greatest  business  depression  which  the  country  had  up 
to  that  time  known. 

The  election  of  the  Whigs  in  1840  was  followed  by  the  tariff 
of  1842 — an  adequate  protection  measure — and  a  revival  of  in- 
dustry and  prosperity  immediately  followed.  But  the  Democrats 
again  came  into  power  in  1844,  and  under  the  leadership  of  the 
Secretary  of  the  Treasury,  Robert  J.  Walker,  of  Mississippi,  a 
new  law  was  framed  in  1846  which  remained  in  force  until  1857, 
when  the  duties  were  further  reduced  and  when  another  severe 
panic  followed  with  accompanying  distress  to  all  phases  of  com- 
merce and  industry.  -  This  period  from  1846  to  1860  was  accom- 
panied by  the  nearest  approach  to  free  trade  in  our  history, 
and  while  the  country  enjoyed  more  or  less  progress  and  periods 
of  prosperity  in  certain  industrial  lines,  owing  largely  to  de- 
mands abroad  for  our  agricultural  products,  due  to  foreign  wars 
and  famines,  yet  in  spite  of  these  favorable  condil  ious,  the 
so-called  Walker  Tariff  and  tariff  of  1857  brought  widespread 
ruin  to  .many  of  our  industries  and  checked  our  industrial 
progress, 


THE  TARIFF.  39 

When  the  Republicans  came  into  power  in  1861,  they  were 
confronted  with  a  country  nearly  bankrupt,  with  an  empty 
Treasury,  with  industries  prostrated,  with  expenditures  exceed- 
ing receipts,  and  with  an  unfavorable  balance  of  trade.  Mr. 
Morrill,  of  Vermont,  then  Chairman  of  the  Ways  and  Means 
Committee,  framed  a  bill  on  protective  tariff  lines,  the  first 
measure  enacted  by  the  Eepublican  Party,  and  the  Republican 
Party  has  from  that  time  to  this  persistently  and  consistently 
advocated  and  enacted  tariff  laws  which  during*  their  operation 
have  not  only  afforded  sufficient  revenue,  but  have  given  ample 
protection  to  American  labor  and  industry  against  the  competi- 
tion of  cheaper  labor  abroad.  This  first  law,  due  to  the  wisdom 
of  Republican  leaders,  was  in  no  way  intended  to  be  a  war 
measure,  and  after  the  war  broke  out  and  during  four  years 
of  its  continuance,  it  was  repeatedly  amended  to  meet  existing 
conditions.  'After  the  close  of  the  war  and  during  the  years 
which  followed  numerous  changes  were  made,  reducing  many 
of  the  high  rates  made  necessary  as  revenue  producers  during 
the  war  period,  but  the  Republican  principle  of  protection  was 
retained  so  long  as  the  legislative  and  executive  power  remained 
in  the  hands  of  the  Republican  Party. 

The  McKinley  law  enacted  in  1890  was  accepted  by  all  Repub- 
licans and  Protectionists  as  the  best  tariff  law  that  had  ever 
been  framed  up  to  that  time.  Under  its  operation  the  country 
was  at  the  height  of  its  prosperity  and  progress  in  1892,  when 
suddenly  to  the  consternation  of  the  industrial  world  a  Demo- 
cratic President  was  elected,  and  with  him  a  Democratic  Senate 
and  House  of  Representatives.  Anticipating  the  enactment  of 
a  tariff  law  largely  for  revenue  only,  a  financial  and  industrial 
panic  came  over  the  country,  which  continued  until  it  was  ar- 
rested by  the  enactment  of  the  so-called  Dingley  Tariff  in  1897. 
Carrying  out  their  threat,  the  Democrats  framed  and  passed 
a  low  tariff  bill  in  1894,  which  became  a  law  without  the  signa- 
ture of  th«  President  and  remained  in  force  until  July  24,  1897. 

In  1897  the  Dingley  law,  a  distinctly  protective  measure,  was 
exacted,  and  under  it  the  United  States  enjoyed  marked  progress 
and  prosperity,  ^  The  importation  of  manufacturers'  raw  material, 
a  test  of  the  manufacturing  activity  of  the  country,  grew  from 
less  than  $200,000,000  to  $477,000,000,  the  exports  of  manufac- 
tures from  about  $300,000,000  to  over  $700,000,000,  and  the  indi- 
vidual bank  deposits  from  $5,000,000,000  to  $13,000,000,000. 

By  1908,  however,  conditions  had  so  changed  in  the  United 
States  as  to  suggest  a  revision  of  the  tariff  framed  a  dozen  years 
earlier,  and  the  Republican  Party  at  its  National  Convention  of 
that  year  pledged  itself  to  a  prompt  revision  upon  the  basis 
that  "the  true  principle  of  protection  is  best  maintained  by  the 
imposition  of  such  duties  as  will  equal  the  difference  between 
the  cost  of  production  at  home  and  abroad,  together  with  a 
reasonable  profit  to  American  industries." 

In  carrying  out  this  pledge  the  Republican  Congress  framed 
and  adopted  the  measure  known  as  the  Payne  Tariff  Law,  which 
went  into  operation  August  5,  1909.  Necessarily,  this  new 
measure  was  framed  without  an  opportunity  to  base  its  rates 
upon  the  difference  in  cost  of  production  at  home  and  abroad, 
because  there  had  been,  up  to  that  time,  no  existing  machinery 
of  government  to  obtain  this  information.  So  the  Payne  law 
was  framed  upon  the  best  information  then  available,  and  in 
this  act  itself  provision  was  made  for  a  maximum  and  mini- 
mum tariff  and  for  the  creation  of  a  Tariff  Board  to  obtain 
information  from  abroad  on  cost  of  production,  upon  which  read- 
justments of  the  tariff  law  might  be  made  from  time  to  time, 
and  schedule  by  schedule,  as  the  information  so  obtained 
might  suggest  and  justify. 

That  the  Payne  law,  though  confessedly  framed  without  the 
information  from  abroad  necessary  for  a  complete  application 
of  the  pledges  of  1908  with  reference  to  comparative  production 
at  home  and  abroad,  has  done  splendid  work  can  not  be  doubted 
by  those  who  study  its  results.  There  were  654  decreases  in 
duty,  220  increases  and  1,150  items  of  the  dutiable  list  in  which 


40  THE  TARIFF.  ' 

the  rates  were  unchanged.  Duties  were  decreased  on  articles 
which  had  a  consumption  value  of  nearly  $5,000,000,000  per  an- 
num and  advanced  on  those  articles  which  had  a  consumption 
value  of  le'ss  than  $1,000,000,000.  The  bill  gave  free  hides  and 
free  oil,  reduced  the  dut}'  on  iron  ore  75  per  cent,  on  coal  33  1/3 
per  cent,  on  lumber  37%  per  cent,  on  all  classes  of  iron  and 
steel  manufactures  very  greatly ;  made  large  cuts  in  the  rates 
on  the  necessaries  of  life,  and  to  offset  this  loss  in  revenue 
made  large  increases  in  the  rates  on  luxuries.  While  certain 
features,  especially  the  cotton  and  woolen  schedules,  were  not 
satisfactory  to  the  President,  he  signed  the  bill  in  the  belief  that 
these  could  and  would  be  adjusted  when  the  necessary  informa- 
tion for  intelligent  action  thereon  should  become  available 
through  the  investigation  by  the  proposed  Tariff  Board. 

The  practical  results  of  the  working  of  the  Payne  Tariff  Law 
have  been  a  source  of  gratification  to  those  who  have  followed 
it  and  compared  its  workings  with  those  of  its  predecessors 
during  the  past  22  years.  The  following  official  table  showing 
the  value  of  the  free  and  dutiable  merchandise  imported,  the 
ad  valorum  rates  of  duty  and  the  duties  collected  under  the  en- 
tire operation  of  the  McKinley,  the  Wilson  and  the  Dingley  laws 
respectively,  and  under  the  Payne  law  to  the  end  of  the  fiscal 
year  1912,  and  the  monthly  average  during  the  entire  operation 
of  each  law,  shows  that  the  Payne  law  nas,  despite  the  criticism 
heaped  upon  it,  made  a  fine  record  in  the  matter  of  importations 
free  of  duty,  low  ad  valorum  rates  of  duty  and  yet  revenues 
sufficient  to  meet  the  requirements  of  the  Government.  Atten- 
tion is  especially  called  to  the  fact  that  the  Payne  law,  which 
on  June  30,  1912,  had  been  in  operation  just  the  same  number 
of  months  as  that  in  which  the  Wilson  law  operated,  showed 
average  monthly  imports  free  of  duty  more  than  double  that 
of  the  Wilson  law,  a  larger  percentage  of  the  total  imports  free 
of  duty  than  did  the  Wilson  law,  lower  ad  valorum  rates  of 
duty,  and  yet  average  monthly  revenues  practically  twice  those 
produced  by  the  Wilson  law. 


Our  Principal  Tariff  Laws. 

1789,  July  4  . . . .  Specific  and  ad  valorem  rates,  latter  from  5  to 

15  per  cent. 

1790,  August  10. Specific  and  ad  valorem  rates,  latter  from  3  to 

15y2  per  cent. 

1791,  March  3  .  .This  act  only  affected  "spirits"  paying  specific 

duties. 

1792,  May  2 Specific  and  ad  valorem  rates,  latter  from  7y2  to 

15  per  cent. 

1794,  June  7 . . . .  Specific   and   ad  valorem   rates,   latter   from    10 

to  20  per  cent. 

1795,  January  29.This  act  affected  but  few  articles  paying  spe- 

cific and  ad  valorem  rates. 

1797,  March  3  ..This  act  affected  but  few  articles  paying  spe- 
cific and  ad  valorem  rates. 

1797,  July  8.... This  act  only  affected  salt  paying  a  specific 
duty. 

1800,  May  13  ...This  act  affected  but  few  articles  paying  spe- 
cific and  ad  valorem  rates. 

1804,  March  26  .This  act,  commonly  ealled  "Mediterranean 
fund,"  imposing  an  additional  duty  of  2y9 
per  cent,  in  addition  to  the  duties  now  im- 
posed by  law. 

1804,  March  27  .This  act  affected  but  few  articles  paying  spe- 
cific rates. 

1812,  July  1 This  act  imposed  DOUBLE  DUTIES,  known  as 

WAR  DUTIES. 

1813,  July  29... This    act    only    affected    salt    paying    a    specific 

duty. 
181«,  February  5.This  act  continued  the  double  duties  to  30th  of 
June,  1817. 


THE  TARIFF.  41 

1816,  April  27... Specific  minimum  and  ad  valorem  rates,  latter 
from  7y2  to  30  per  cent. 

1818,  April  20... This  act  affected  but  few  articles  paying  spe- 

cific rates. 

1819,  March  3  ..This   act   only   affected  "wines"   paying   specific 

rates. 

1824,  May  22  . . .  Specific,  minimum,  compound,  and  ad  valorem, 
latter  from  12  to  50  per  cent.,  the  first 
really  Protective  tariff.  Eesults  were  most 
beneficial. 

1828,  May  19  ...Known  as  the  Tariff  of  Abominations.  Spe- 
cific, minimum,  compound  and  ad  valorem, 
latter  from  20  to  50  per  cent. 

1828,  May  24  ...This  act  only  affected  "wines"  paying  specific 
rates. 

1830,  May  20  ...This  act  only  affected  "coffee,  tea,  and  cocoa" 
paying  specific  rates,  and  reducing  the  rates. 

1830,  May  29  . .  .This  act  only  affected  "molasses"  paying  specific 
rates. 

1830,  May  29  ..  .This  act  only  affected  "salt"  paying  specific 
rates. 

1832,  July  13  . .  .This  act  only  affected  "wines  of  France"  paying 
specific  rates. 

1832,  July  14  . .  .  Specific,  minimum,  compound,  and  ad  valorem, 

the  latter  from  5  to  50  per  cent. 

1833,  March  2  ..Compromise  act — looking  to  a  reduction  of  du- 

ties to   20  per  cent. 

1841,  Sept.  11... Specific    and   ad   valorem,   latter   from   12%    to 

20  per  cent. 

1842,  August  30. Specific,  minimum,  compound,  and  ad  valorem, 

the  latter  from  1  to  50  per  cent. 

1846,  July  30  ..  .The  rates  of  duty  imposed  by  this  act  were  ex- 
clusively ad  valorem,  and  arranged  by 
schedules. 

1857,  March  3  ..A  further  reduction  of  rates  which  were  ex- 
clusively ad  valorem,  arranged  by  schedules. 

1861,  March  2  .  .Went  into  effect  April  12,  1861.  Intended  to 
raise  the  necessary  revenue  for  the  Govern- 
ment expenditures  and  afford  protection  to 
our  labor   and  industries. 

1861,  August  5.  .First  of  the  war  tariffs,  large  increase  in  duties. 

1861,  Dec.  24  ...Duties  increased  on  sugar,  tea  and  coffee. 

1862,  July  14  . .  .Wenf  into   effect  August   2,    1862.     Further   in- 

crease of  rates. 

1863,  March     3 ; 
1864,  April    20, 

June  30;    1865,  I     Bills    changing    and    generally     increasing 
March  5 ;  1866,  (    duties. 
March  15,  July 
28     

1867,  March  2  .  .Kates    increased    on    wool    and   woolens,    giving 

great  benefit  to  those  industries. 
1870,      July       14, 

December  20 . .  General    changes.     Free    list    largely     reduced. 

Duty  of  $28  per  ton  on  steel  rails. 

1872,  May  1 Tea  and  coffee  made  free. 

1872,  June  6 Went  into  effect  August  1,  1872.     Reduction  of 

10  per  cent.     Increased  free  list. 
1875,  February  8.Eevised    statute,    with    slight    and   unimportant 

changes. 

1874,  June  22... Known    as   the    "Little    Tariff    Bill."        General 

changes. 

1875,  March  3  ..Bates  increased  on  sugar.     Repeal  of  the  10  per 

cent  reduction  of  Act  of  June  6,  1872 

1879,  July  1  .  .  .  .Quinine  made  free. 

1880,  July  14... A  few  unimportant  changes.  r 

1882,  May    6  and 

December  3..  Repeals  discriminating  duty. 

1883,  March  3  .  .Went   into   effect   July   1,    1883.     Known   as   the 

Tariff    Commission    Bill.     General   revision, 


42  THE  TARIFF. 

reduction  and  increased  free  list.  Severe 
blow  to  wool  industry. 

1890,  October  l.Went  into  effect  October  6,  1890.  Known  as 
the  McKinley  Bill.  Changes  from  ad  val- 
orem to  specific  rates.  Enlarged  free  list. 
Sugar  made  free,  a  bounty  being  substi- 
tuted.    Beciprocity  law. 

1894,  August  27. Known  as  the  Gorman-Wilson  Bill.  Became  a 
law  without  the  President's  signature.  Gen- 
eral reduction  of  duties.  Wool  put  on  free 
list.  Besults,  both  anticipatory  and  actual, 
were  disastrous  to  all  industry  and  labor.^ 

1897,  July  24... Known  as  the  Dingley  Law.  A  distinctively 
protective  tariff,  under  which  general  pros- 
perity prevailed  in  all  lines  of  industry, 
trade  and  transportation.  In  operation  12 
years. 

1909,  August  5.. Known  as  Payne  Tariff  Law — Protective,  but  a 
decided  reduction  in  many  rates  of  duty. 
Besulted  in  large  increase  in  imports  of 
free  merchandise,  low  ad  valorem  rates  of 
duty  and  increased  revenue. 

What  is   the  Purpose   of  a  Tariff  t 

The  primary  idea  in  levying  a  tax  upon  merchandise  entering 
a  community  or  State  was  to  require  persons  from  abroad  trad- 
ing in  that  community  to  bear  their  proper  share  in  the  public 
expenditures.  The  tranquillity  and  order  of  the  community  and 
hence  its  commercial  possibilities,  were  maintained  by  the  gov- 
ernment, for  whose  support  the  local  producers  and  merchants 
were  taxed,  and  it  was  held  that  merchants  from  abroad  desir- 
ing to  enjoy  the  privilege  of  trading  in  that  community  should 
contribute  their  proper  share  to  the  maintenance  of  the  govern- 
ment, which  assured  commercial  privileges,  and  that  they  should 
contribute  a  relatively  larger  percentage  of  the  value  of  the 
merchandise  sold  than  was  required  of  the  local  dealer  because 
the  foreign  mrechant  carried  away  with  him  his  profits,  while 
the  domestic  producer  or  dealer  expended  his  profits  in  the  home 
community  in  the  support  of  his  family  or  in  the  employment  of 
other  members  of  the  community.  Hence  the  tariff — a  tax  upon 
merchandise  entering  a  community  from  abroad. 

DANGEE   FEOlf    OUTSIDE    COMPETITION    INCREASING. 

Originally  the  danger  to  domestic  industries  from  foreign  com- 
petition was  much  less  than  at  the  present  time.  Merchandise 
brought  into  any  country  from  abroad  must  first  bear  the  cost 
of  transportation,  and  in  times  when  the  cost  of  transportation 
was  great,  and  when  goods  were  necessarily  transported  by 
animal  power  and  by  sailing  vessels  only,  this  high  cost  of 
carriage  was  of  itself  a  protection  to  the  domestic  producer  in 
any  country.  True,  the  producer  of  merchandise  just  across 
the  border  line  of  a  country  had  an  enormous  advantage  over  the 
producer  a  thousand  or  five  thousand  miles  distant,  but  as  onbfc 
a  small  proportion  of  the  producers  were  located  near  to  the 
border  line  such  countries  did  not  find  it  necessary  to  establish 
high  tariffs  to  protect  their  own  producers  or  manufacturers. 
The  distance  which  foreign  goods  must  be  carried  and  the  cost 
of  transportation  over  the  distance  alone  serve  to  create  a  pro- 
tective wall  for  the  domestic  producer,  f  In  late  years  these 
conditions  of  distance  and  transportation  have  absolutely 
changed.  The  railroad  and  the  modern  steamship  have  reduced 
the  cost  of  transportation  compared  with  that  in  the  early  part 
or  even  in  the  middle  of  the  century  just  ended ;  while  the  tele- 
graph and  the  telephone  have  annihilated  distance  and  time. 
Merchandise  from  the  interior  of  Europe,  ordered  by  telephone, 
telegraph,  and  cable,  transported  from  its  place  of  production 
by  trolley  road,  canalized  rivers,  or  boats  operated  by  steam  or 
electricity,  or  by  railway  to  the  Atlantic,  and  thence  by  great 


THE  TARIFF.  43 

steamsjjaps,  built  to  carry  hundreds  of  carloads  at  a  single 
y°ya8m  across  the  ocean,  and  again  transported  to  the  interior 
of  th#  United  States  by  the  cheapest  land  transportation  ever 
known  to  man,  can  be  placed  at  the  door  of  the  consumer  in  the 
Mississippi  Valley  for  a  very  small  percentage  of  the  cost  of 
transporting  the  same  at  the  middle  of  the  last  century. 


CHEAP  FREIGHTS    HAVE  DESTROYED   NATURAL  PROTECTION. 

As  a  result  the  protection  which  distance  and  the  cost  of 
transportation  afforded  to  the  local  producer  has  disappeared, 
and  without  a  protective  tariff,  established  by  the  Government, 
he  has  as  his  direct  competitor  the  low-priced  labor  of  any  and 
every  part  of  the  world.  The  cheap  labor  of  the  densely  popu- 
ulated  countries  of  Europe,  the  140  million  low-priced  workers 
of  Hussia,  the  300  million  people  of  India,  whose  average  wage 
is  but  a  few  cents  per  day,  and  the  400  million  workers  of  China 
are  to-day  as  much  the  competitors  of  the  workman  of  the 
United  States  as  though  they  were  located  but  just  across  the 
border.  Modern  methods  of  transportation  and  communication 
have  brought  these  great  masses  of  producers  to  our  very  doors, 
and  without  the  protection  which  the  tariff  affords  would  place 
that  cheap  labor  in  as  close  competition  with  our  own  as  it 
would  have  been  a  half  century  ago  if  located  but  a  hundred 
miles  away.  , 

As  an  example  of  the  reduction  in  cost  of  transportation 
may  be  cited  the  fact  that  the  annual  average  freight  rate  on 
wheat  from  Chicago  to  Liverpool,  by  the  cheapest  method  of 
transportation,  in  1873  was  40  cents  per  bushel  and  in  1903 
eight  cents  per  bushel,  or  but  one-fifth  that  of  only  30  years 
earlier.  Comparing  conditions  now  with  those  of  the  early  part 
of  the  last  century  the  reduction  is  still  greater,  and  the  cost 
of  transportation  at  the  present  time  may  safely  be  said  to  be 
less  than  one-tenth  of  that  then  existing.  An  illustration  of 
the  reduction  in  cost  of  transportation  through  modern  methods 
is  found  in  the  fact  that  the  census  of  1880  showed  that  the 
railways  could  transport  a  ton  of  wheat  for  a  given  distance  as 
cheaply  as  a  single  bushel  could  be  transported  the  same  dis- 
tance by  horse  power,  and  railway  rates  have  fallen  practically 
one-half  since  that  time.  That  high  authority  the  Encyclopedia 
Britannica  states  in  its  1903  edition  that  the  mechanic  in  Liver- 
pool may  now  pay  with  one  day's  wages  the  entire  cost  of  trans- 
porting, a  year's  supply  of  oread  and  meat  for  one  man  from 
Chicago  to  that  city. 

These  facts  illustrate  how  completely  modern  methods  have 
destroyed  the  protection  which  the  local  producer  formerly  had 
against  foreign  competitors,  and  explain  the  reason  why  modern 
governments  have  found  it  necessary,  one  by  one,  to  adopt  the 
protective  system,  until  now  many  men  in  the  most  ardent  and 
chief  remaining  supporter  of  the  nonprotective  system,  the 
United  Kingdom,  are  seriously  discussing  the  adoption  of  a 
protective  tariff.  This  gradual  destruction  of  the  natural  pro- 
tection formerly  afforded  by  distance  and  cost  of  transporta- 
tion accounts  for  the  fact  that  it  has  been  found  necessary  to 
maintain  the  protective  tariff  on  the  various  industries  as  they 
have  developed,  and  that  this  necessity  for  maintaining  protec- 
tion for  those  industries  has  meantime  been  recognized  by  all 
other  leading  manufacturing  countries  of  the  world  whose  in- 
dustries were  developed  even  before  those  of  the  United  States, 
except  in  the  case  of  the  United  Kingdom,  whose  people  are 
now  clamoring  for  a  return  to  protection  of  their  long  estab- 
lished domestic  industries.  This  reduction  in«  cost  of  trans- 
portation is  indeed  one  of  the  chief  causes  of  the  steady  move- 
ment toward  protection  which  has  characterized  the  history 
of  the  world  during  the  last  half  century.  The  fact  that,  with 
improved  methods  of  transportation  and  a  narrowing  of  dis- 
tances and  cheapening  of  cost  of  transportation,  the  whole 
world  lias  become  the  next-door  neighbor  of  each  community 
has    compelled    that    community    to    establish   tariff   duties    of    a 


44  THE  TARIFF. 

character  which  would  reduce  the  competition  offered  by  the 
cheap  labor  of  those  communities  against  which  distance  no 
longer  affords  protection. 

Practically  all  of  the  500,000  miles  of  railway  and  16  million 
tons  of  steamship  tonnage  with  which  the  world  is  now  supplied 
have  been  created  since  the  middle  of  last  century;  the  world's 
international  commerce  has  quadrupled  while  the  world's  pop- 
lation  was  increasing  but  50  per  cent,  and  during  that  very 
period  the  nations  of  the  world  have  one  by  one  found  it 
necessary  to  establish  tariff  protection  to  take  the  place  of  that 
protection  which  distance  and  high  cost  of  transportation  for- 
merly afforded. 

TRUSTS    HAVE  LONG   FLOURISHED   IN    FBEB  TRADE   ENGLAND. 

No  one  familiar  with  the  history  of  trusts  and  great  combi- 
nations in  other  parts  of  the  world  can  for  a  moment  accept  as 
accurate  the  assertion  that  the  tariff  is  responsible  for  the  ex- 
istence of  organizations  of  this  general  character,  whether  un- 
der the  title  of  trusts  or  otherwise.  Mr.  Blaine,  in  1888,  on 
returning  from  a  visit  to  Europe,  declared  in  his  speech  opening 
the  Presidential  campaign  of  that  year  that  trusts  and  com- 
binations to  control  prices  even  at  that  early  date  existed  in 
free-trade  England  in  large  numbers ;  or,  as  Senator  Dolliver 
has  recently  expressed  it,  "England  was  even  then  plastered  all 
over  with  trusts."  In  October,  1895,  a  steel-rail  trust  which 
embraced  the  steel-rail  manufacturers  of  Great  Britain  was  or- 
ganized, and  on  February  5,  1896,  the  London  Ironmonger  an- 
nounced the  details  of  its  agreement,  the  chief  among  them 
being  that  "there  is  to  be  no  underselling."  In  1895  the  Shef- 
field Telegraph  published  the  draft  of  a  scheme  proposing  the 
combination  of  200  iron  firms  in  the  various  cities  of  England 
for  the  purpose  of  regulating  the  prices  of  all  classes  of  iron. 
In  1897  the  details  of  the  combination  between  the  great  arma- 
ment manufacturing  firms  were  announced.  Some  of  the  great 
combinations  in  England  for  the  concrol  of  prices  of  articles  in 
common  use  were  organized  as  early  as  1890,  among  them 
the  following:'  The  Salt  Union,  Limited,  with  a  capital  of 
$10,000,000 ;  «in  the  same  year,  the  Alkali  Company,  combining  43 
manufacturing  establishments,  with  a  capital  of  $30,000,000 ;  the 
J.  &  P.  Coates  Company,  thread  manufacturers,  in  1896,  a  com' 
bination  of  four  businesses,  with  a  capital  of  $27,000,000;  an- 
other cotton  thread  organization,  a  year  later,  combining  15 
manufacturing  establishments  with  a  capital  of  $14,000,000;  a 
combination  of  cotton  spinners  in  1898,  combining  31  establish- 
ments with  a  capital  of  $30,000,000;  in  the  same  year  a  com- 
bination of  the  dyeing  interests,  combining  22  establishments 
with  a  capital  of  $22,000,000 ;  also  in  the  same  year  a  combina- 
tion of  the  Yorkshire  Wool  Combers,  combining  38  establish- 
ments with  a  capital  of  $12,000,000;  also  in  1898  a  combination 
of  60  calico  printing  establishments  with  a  capital  of  $46,000,000 ; 
in  1900  a  combination  of  28  wall  paper  manufacturers  with  a 
capital  of  $21,000,000,  and  in  the  same  year  a  combination  of 
46  establishments  of  cotton  and  wool  dyeing  organizations  with 
a  capital  of  $15,000,000.  In  the  decade  1890-1900  the  public 
announcements  of  combinations  in  free-trade  England  included 
328  different  business  concerns  amalgamated  into  15  great  or- 
ganizations with  a  total  capital  of  $230,000,000,  while  a  very 
large  number  of  minor  organizations  and  those  which  were  not 
made  public  should  be  added  to  the  list  to  render  it  complete. 
Many  great  combinations  have  been  organized  in  free-trade  Eng- 
land since  1900,  and  are  still  being  organized,  but  this  history 
of  the  decade  in  which  great  combinations  of  capital  of  this 
character  were  common  in  all  parts  of  the  world  where  manu- 
facturing capital  is  plentiful  is  sufficient  to  show;  that  such 
combinations  and  organizations  are  not  confined  to  protection 
countries,  but  on  the  contrary  flourish  with  equal  vigor  in  the 
one  free-trade  country  in  which  a  sufficient  amount  of  capital 
exists  to  justify  the  organization  of  combinations  of  this  kind. 


THE  TARIFF.  45 

EXPORT    PRICE   REDUCTION    IN    FREE    TRADE    ENGLAND. 

Exportation-  at  prices  below  those  of  the  home  market  is  not 
in  any  sense  the  result  of  or  accomplished  by  the  aid  of  a 
protective  tariff.  It  is  practiced  more  freely  in  free-trade  Great 
Britain  than  in  any  other  country.  United  States  Consul  Rufus 
Fleming-,  writing-  from  his  post  in  Edinburgh,  Scotland,  in  an 
official  report  on  this  subject  says: 

"  'It  is  the  policy  of  British  manufacturers  to  maintain  prices 
in  the  home  markets  at  the  highest  possible  level  and  to  make 
whatever  concessions  may  oe  necessary  in  foreign  markets,*  said 
the  manager  director  of  a  leading  British  metal-working1  com- 
pany to  me.  He  referred  to  the  industries  in  general,  excepting 
such  as  are  based  largely  upon  the  manufacture  of  low-grade 
goods  for  the  foreign  trade.  There  can  be  no  doubt  that  this 
manufacturer  spoke  with  full  knowledge  of  the  subject.  His 
opinion  is  corroborated  by  investigation  in  various  departments 
of  production.  Cutting  prices  in  foreign  markets  to  meet  com- 
petition, or  to  prevent  competition,  as  the  case  may  be,  is  a  com- 
mon practice,  the  length  to  which  it  is  carried  depending  alto- 
gether on  circumstances,  chiefly  on  stocks  and  labor  conditions. 
When  a  considerable  surplus  remains  on  the  hands  of  the  pro- 
ducer the  effort  is,  to  avoid  overloading  the  home  market  and 
thus  reducing  the  price  of  the  bulk  of  the  product,  to  sell  the 
surplus  in  foreign  countries  at  the  oest  price  ootainaole. 

"At  all  times,  even  when  great  trade  conditions  at  home  and 
abroad  are  excellent,  it  is  the  rule  in  British  industries  to  quote 
lower  prices  to  foreign  ouyers  and  British  exporters  than  to 
the  average  domestic  trader.  The  difference  in  favor  of  the  for- 
eigner or  exporter  ranges  from  4  to  6  per  cent.  The  British 
maker  of  an  important  machine  informs  me  that,  although  he 
has  no  competition,  he  quotes  the  machine  to  customers  in 
Belgium  and  one  or  two  other  countries  on  the  Continent  at 
15  per  cent  less  than  the  price  at  which  it  is  sold  in  this 
country.  The  reason  is  that  these  Belgian  and  other  Continental 
firms  will  not  pay  more  than  a  certain  amount  for  it,  and  he 
comes  to  their  terms  in  order  to  obviate  the  danger  of  compe- 
tition arising  from  the  invention  and  manufacture  of  a  simi- 
lar apparatus  in  Belgium  or  elsewhere:  He  told  me  that  he 
would  sell  abroad,  in  the  present  state  of  trade,  at  any  price 
he  could  get  above  cost.  Another  example  of  sales  made  in  a 
foreign  market  at  much  below  home  prices  has  fallen  directly 
under  my  notice.  I  have  seen  invoices  of  a  British  firm  of  steel 
wire  manufacturers  to  German  buyers  in  which  the  prices  were 
fully  20  y2  per  cent  lower  than  the  prices  quoted  to  home  cus- 
tomers. This  reduction  was  not  due  to  an  extraordinary  sur- 
plus, but  principally  to  a  determination  to  put  a  certain  line  of 
goods  into  a  competitive  market." 


PRESENT    TARIFF    SYSTEMS    OF    THE    WORLD. 

Three  types  of  tariff  systems  have  been  adopted  by  leading 
nations  during  the  more  recent  period.  The  earliest  type  is  the 
single,  or  "autonomous,"  tariff.  It  is  made  up  of  schedules  or 
rates  which  apply  uniformly  to  imports  from  all  countries,  no 
favor  or  discrimination  being  shown  to  any  one  of  them.  It  is 
also  called  "autonomous"  because  it  is  the  result  of  domestic 
legislation  only,  with  regard  primarily  to  the  wants  and  inter- 
ests of  national  industry. 

The  best  example  of  an  autonomous,  non-protectionist  tariff 
is  presented  by  the  British  tariff,  the  duties  of  which  are  purely 
fiscal  in  character  and  therefore  not  adapted  for  change  or  re- 
duction by  tariff  agreements. 

The  tariff  systems  adopted  by  most  countries  of  the  European 
continent  differ  from  the  British  system,  each  tariff  having  a 
double  column  of  rates.  The  rates  in  the  second  columns  are  of 
course  never  higher  than  in  the  first  column,  and  as  a  rule—' 
lower. 


46  THE  TARIFF. 

In  case  this  double  set  of  rates  is  the  result  primarily  of 
domestic  legislation  and  the  mere  application  of  these  rati 
the  various  countries  the  result  of  international  bargaining,  the 
tariff  is  designated  as  a  "maximum  and  minimum"  tariff.  Ex- 
amples  of  this  system  are  presented  by  the  tariffs  of  France, 
Spain,  and  Norway.  Whenever  this  second  set  of  rates  is  pri- 
marily not  the  result  of  domestic  legislation  but  of  international 
bargaining,  such  a  tariff  is  spoken  of  as  a  "general  and  conven- 
tional" tariff.  Typical  examples  of  the  conventional  system  are 
the  German,  Austro-Hungarian,  Italian,  Swiss,  and  Russian 
tariffs. 

It  can  not  be  said  that  any  of  the  three  forms  of  tariffs  de- 
scribed is  peculiarly  suited  to  a  protective  system.  The  German 
general  and  conventional  tariff  and  the  French  maximum  and 
minimum  tariff  are  both  moderately  protective,  while  among  the 
single  tariff  countries  Great  Britain  with  its  free  trade  system 
and  Portugal  with  its  extreme  protection  are  alike  to  be  found. 
In  its  strictest  form  the  theory  of  free  trade  is  opposed  to  the 
concession  of  tariff  reductions  in  favor  of  particular  countries, 
and  countries  adhering  to  that  doctrine  must  consequently  em- 
ploy the  single  tariff. 


THE    MAXIMUM    AND    MINIMUM    SYSTEM    DESCRIBED. 

As  may  be  seen  from  the  short  definitions  just  given,  both  the 
"maximum  and  minimum"  and  the  "general  and  conventional" 
tariff  systems  presuppose  international  bargaining  and  agree- 
ments. The  difference  between  the  two  systems  is,  that  in  the 
case  of  the  maximum  and  minimum  tariff  systems  the  legislative 
body  of  the  country  from  the  outset  fixes  the  limits  within 
which  concessions  to  foreign  countries  may  be  made  by  the 
Executive.  After  this  type  of  tariff  has  been  adopted  by  the 
national  legislature  the  domestic  producer  is  assured  of  a  mini- 
mum degree  of  protection  which  can  not  be  reduced  by  the  Ex- 
ecutive through  negotiations  with  foreign  countries.  Further- 
more, the  legislature  may  restrict  the  number  of  articles  td 
which  two  sets  of  rates  are  applicable.  For  example,  the  French 
tariff  provides  only  for .  a  single  rate  of  duties  on  the  principal 
breadstuffs. 


THE  CONVENTIONAL  SYSTEM   DESCRIBED. 

In  the  case  of  the  general  and  conventional  tariff  systems  the 
legislature  fixes  from  the  outset  one  set  of  duties  only,  which 
is  sometimes  called  the  autonomous  set,  being  the  result  of  au- 
tonomous national  legislation.  The  process  by  which  the  second 
set  of  duties  is  attained  is  normally  as  follows :  Country  A  and 
Country  B,  both  having  passed  their  autonomous  tariffs,  open 
negotiations  through  specially  appointed  agents  with  the  view 
of  obtaining  reciprocal  concessions  from  the  rates  found  in  the 
respective  autonomous  tariffs.  Assuming  that  Country  A  is  an 
exporter  of  agricultural  and  mining  products,  its  negotiators 
naturally  will  attempt  to  obtain  reductions  of  duty  on  the  above 
products  without  paying  attention  to  the  autonomous  rates 
found  in  the  tariff  of  Country  B  on  articles  in  the  exportation 
of  which  their  country  is  not  interested.  In  case  Country  B  is 
an  exporter  of  textiles  and  chemicals  the  negotiators  represent- 
ing Country  B  will  be  interested  in  having  the  rates  on  these 
products  only  reduced  by  Country  A.  If  the  concessions  granted 
by  one  side  are  found  to  be  equivalent  to  those  granted  by  the 
other,  new  sets  of  rates  will  be  constructed  which,  as  a  rule, 
will  be  lower  in  either  tariff  than  the  rates  on  the  same  articles 
adopted  originally  by  the  legislatures  of  the  two  countries. 
Sometimes  the  result  of  such  negotiations  is  that  some  conven- 
tional rate  adopted  does  not  differ  from  the  original  autonomous 
rate,  but  is  merely  "fixed"  or  "bound"  for  the  period  of  time 
during  which  the  tariff  agreement  is  to  last.  The  conventional 
tariff  schedule  wnich  results  from  such  negotiations  is  therefore 


THE  TARTFF.  47 

composed  of  reduced  and  "bound"  or  "fixed"  rates.  The  gen- 
eral schedule  may  be  changed  at  any  time  without  violating  any 
of  the  provisions  of  the  treaty ;  the  conventional  rates  must  re- 
main in  force  during  the  life  of  the  treaty  and  may  be  changed 
only  by  the  consent  of  both  parties,  although  they  may  be  re- 
duced by  the  conclusion  of  additional  treaties. 

Such  negotiations  usually  are  carried  on  witn  more  than  one 
country  and  result  in  reductions  or  binding  of  rates  on  various 
groups  of  articles  in  the  exportation  of  which  the  particular 
countries  are  interested.  In  case  a  country  does  not  care  to 
enter  into  such  special  tariff  negotiations,  relying  merely  on  the 
most  favored  nation  clause  in  its  commercial  treaty  with  the 
other  country,  all  the  conventional  rates  accorded  to  other  coun- 
tries as  the  result  of  special  negotiations  are  granted  to  the  first 
country  as  a  matter  of  course.  For  example,  the  United  King- 
dom, by  reason  of  its  most  favored  nation  clause,  obtained 
without  special  negotiations  all  the  conventional  rates  granted 
by  Germany  in  1905-1906  to  Russia,  Austria-Hungary,  Italy,  Swit- 
zerland, Belgium,  Servia,  Roumania,  Sweden,  Bulgaria  and 
Greece.  Inasmuch  as  the  greater  part  of  the  countries  also  con- 
cluded commercial  agreements  with  each  other  and  extended 
the  concessions  granted  to  any  one  of  them  to  all  others  having 
most  favored  nation  clauses  in  their  treaties,  it  follows  that  all 
concessions  granted  originally  only  to  one  country  in  the  cycle 
are  applicable  to  importations  from  all  other  countries  entitled 
to  such  concessions  by  reason  of  their  most  favored  nation 
clause.  It  is  seen  therefore  that  the  application  of  the  original 
general  tariff  adopted  by  the  legislature  is  considerably  modi- 
fied by  the  conclusion  of  commercial  treaties  and  that  the  con- 
ventional rates  ar«  the  ones  normally  applied.  These  rates 
come  into  force  by  legislative  enactment,  each  tariff  conven- 
tion or  treaty  with  its  set  of  new  conventional  rates  being  sub- 
ject to  sanction  by  the  legislature.'  The  conclusion  of  such 
tariff  treaties  on  the  part  of  the  negotiators  therefore  presup- 
poses not  only  an  expert  knowledge  of  the  export  industries, 
for  which  concessions  are  to  be  obtained,  but  also  of  the  limits 
of  concessions  from  the  rates  of  the  general  tariff  which  may  be 
granted  without  endangering  the  adoption  of  the  tariff  treaty 
by  the  legislature  of  their  own  country.'  For  it  must  be  under- 
stood that  the  terms  of  the  treaty  can  not  be  modified  by  the 
legislature,  which  merely  reserves  the  right  to  adopt  or  reject 
the  treaty  as  a  whole.  In  the  case  of  the  maximum  and  mini- 
mum tariff,  unless  the  right  to  grant  all  or  certain  minimum 
rates  for  equivalent  concessions  is  specially  conferred  upon  the 
Executive  by  the  legislature,  a  similar  legislative  sanction  is 
necessary,  though  from  what  has  been  said  above,  it  is  manifest 
that  the  scope  and  freedom  of  the  negotiators  is  more  limited 
and  restricted. 


DIFFERENCE    BETWEEN    THE    CONVENTIONAL    AND    THE    MAXIMUM    AND 
MINIMUM    SYSTEMS. 

The  most  important  difference  between  the  two  types  of  the 
double  tariff  system  is  that  the  maximum  and  minimum  tariff 
leaves  the  Government  free  to  change  either  the  maximum  or 
minimum  rates  whenever  circumstances  and  changed  industrial 
conditions  make  such  action  advisable.  All  that  the  Govern- 
ment binds  itself  to  do  with  regard  to  the  foreign  country  is 
to  accord  to  it  its  minimum  tariff.  As  the  French  negotiators 
put  it  in  their  letter  to  the  Canadian  delegates  during  the  nego- 
tiations of  their  existing  reciprocity  treaty,  "it  is  a  principle 
in  French  customs  legislation  that  the  Administration  can  not 
renounce  its  right  to  revise  or  modify  the  tariff.'"  Under  the  sys- 
tem of  conventional  tariffs  the  contracting  powers  specify  the 
exact  rate  of  duty  to  be  respectively  applied  to  each  other's  prod- 
ucts, and  while  the  general  rates  may  be  moved  up  or  down 
during  the  lifetime  of  the  treaty,  the  conventional  rates  can 
not  be  raised  during  this  period  except  by  mutual  consent.  In 
order  to  insure  stability  of  rates,  tariff  conventions,  as  a  rule, 
are  concluded  for  a  certain  number  of  years — not  less  than  five, 


48  THE  TARIFF. 

but  usually  for  a  longer  period,  ten  or  even  twelve  years, 
it  is  plain  that  either  system  has  its  advantages  and  disadvan- 
tages and  no  a  priori  judgment  regarding  the  respective  merits 
of  the  two  systems  is  possible. 

The  Position  of  the  United  States. 

The  Payne-Aldrich  Tariff  of  August  5,  1909,  adopted  the  prin- 
ciple of  maximum  and  minimum  rates,  the  tariff  rates  men- 
tioned therein  constituting  the  minimum  tariff,  while  the  maxi- 
mum rates  are  higher  by  25  per  cent  ad  valorem.  The  minimum 
rates  apply  to  the  products  of  all  countries,  which  do  not  unduly 
discriminate  against  imports  from  or  exports  to  the  United 
States.  For  the  purpose  of  ascertaining  whether  such  discrim- 
inations were  practiced  and  in  order  to  eliminate  them  where 
possible,  the  newly  established  Tariff  Board  in  conjunction  with 
the  State  Department  undertook  a  careful  examination  of  all 
existing  foreign  tariffs.  As  the  result  of  such  examination  and 
negotiations  with  certain  foreign  governments,  the  President  by 
individual  proclamations  extended  the  benefit  of  the  new  mini- 
mum rates  to  all  the  various  foreign  countries.  Under  the 
terms  of  Section  2  of  the  1909  tariff,  the  minimum  rates  may 
be  withdrawn  at  any  time  upon  90  days'  notice  whenever  the 
President  is  satisfied  that  the  conditions  which  led  to  the  issu- 
ance of  the  original  proclamation  no  longer  exist.  The  nego- 
tiations with  Germany  resulted  in  the  extension  to  the  United 
States  of  the  then  existing  conventional  rates  of  the  German 
tariff.;  In  the  case  of  France  negotiations  lasted  until  March  29, 
1910,  when  the  new  French  tariff  and  a  separate  measure  regu- 
lating the  importation  of  United  States  products  were  enacted. 
Under  this  arrangement  American  products  covered  by  93  tariff 
numbers  are  admitted  at  the  minimum  rates,  including  the  25 
so  admitted  under  the  former  arrangement  and  68  additional 
numbers,  of  which  44  cover  manufactured  articles.  In  addition 
certain  articles,  practically  all  manufactures,  included  under 
23  different  tariffs  numbers,  are  admitted  at  the  rates  of  the 
old  tariff,  which  rates  are  in  most  cases  intermediate  between 
the  maximum  and  minimum  rates  of  the  new  tariff.  These  lat- 
ter rates  are  "bound"  or  "fixed,"  i.e.,  cannot  be  advanced  except 
by  mutual  consent,  while  the  minimum  rates  conceded  are  sub- 
ject to  change  at  the  will  of  the  French  Government,  provided, 
of  course,  that  as  the  result  of  such  change  they  do  not  become 
discriminatory  against  the   United   States. 

The  new  tariff  preserved  the  reciprocity  convention  between 
the  United  States  and  Cuba,  by  the  terms  of  which  Cuban  products 
are  granted  a  20  per  cent  reduction  when  imported  into  this 
country,  while  American  products,  with  the  exception  of 
tobacco,  are  admitted  into  Cuba  at  rates  from  20  to  40  per  cent 
below  those  imposed  on  similar  articles   originating  elsewhere. 

An  interesting  feature  of  the  reciprocity  treaty  between  Cuba 
and  the  United  States  is  the  provision  in  Article  VIII  which 
limits  the  concession  on  Cuban  sugar  to  a  20  per  cent  reduction 
from  the  rates  provided  by  the  tariff  act  approved  July  24,  1897, 
and  specifies  that  no  sugar  from  a  foreign  country  shall  be  ad- 
mitted into  the  United  States,  during  the  life  of  the  reciprocity 
treaty  with  Cuba,  at  a  lower  rate  of  duty  than  that  provided  by 
the  tariff  act  approved  July  24,  1897. 

Trade  between  the  United  States  and  the  Philippine  Islands 
has  been  placed  on  a  free  trade  basis,  except  in  the  case  of  rice, 
which  is  left  dutiable,  and  sugar  and  tobacco,  of  which  only 
limited  quantities  are  admitted  into  this  country  free  of  duty. 

European  Interpretation  of  the  Most  Favored  Nation   Clause. 

Mention  has  been  made  of  the  "most  favored  nation  clause," 
by  reason  of  which  countries  obtain  more  favored  treatment 
freely  and  as  a  matter  of  course  without  special  negotiations 
or  equivalents.  Inasmuch  as  the  European  interpretation  of  this 
clause  differs  considerably  from  ours  a  few  words  of  explana- 
tion seem   necessary.     The   American  view  or   interpretation   of 


THE  TARIFF.  49 

this  clause  is  that  every  favor  or  concession  granted  by  a  treaty 
is  to  be  compensated  by  a  definite  and  positive  concession  of 
some  sort  in  return,  and  that  the  American  Government  reserves 
to  itself  the  right  to  judge  in  each  particular  case  of  the 
adequacy  of  the  return  favor  or  concession.  In  opposition  to 
this  construction  of  the  clause  the  one  now  accepted  by  Euro- 
pean countries  in  their  commercial  relations  is  that  all  conces- 
sions and  favors  given  to  a  third  party  shall  be  at  once  and  with- 
out any  special  return  extended  to  the  other  party  to  whom  most 
favored  nation  treatment  is  guaranteed.  The  result  is  that  a  na- 
tion having  been  granted  the  most  favored  nation  clause  by  its 
neighbor  is  assured  that  while  this  clause  is  in  force  it  will  not 
be  treated  less  favorably  than  any  other  nation.  In  the  first 
place,  then,  favors  or  concessions  given  to  any  other  country 
are  at  once  and  as  a  matter  of  course  given  to  all  other  na- 
tions entitled  to  most  favored  nation  treatment.  And,  second, 
these  concessions  are  given  without  any  special  compensation 
even  though  they  were  secured  by  the  first  country  in  return 
for  specific  and  important  concessions. 

Such  an  interpretation  of  the  clause  in  connection  with  a 
special  tariff  agreement  assures  to  the  parties  concerned  the 
maximum  possible  benefits  in  the  markets  of  the  other  con- 
tracting party.  Either  country  when  sufficiently  interested  has 
an  opportunity  of  obtaining  the  greatest  possible  concessions 
for  its  own  export  industries  by  granting  through  direct  nego- 
tiations return  concessions  on  its  own  general  rates.  Moreover, 
it  is  assured  that  subsequent  tariff  treaties  with  other  countries 
will  not  make  less  favorable  its  position  in  its  neighbor's  mar- 
ket, inasmuch  as  all  such  subsequent  concessions  and  favors 
granted  to  a  third  party  will,  as  a  matter  of  course,  and  without 
further  concessions  on  its  own  part,  be  extended  to  it  by  reason 
of  its  most  favored  nation  clause. 

It  is  therefore  seen  that  the  conventional  tariff  system  is 
closely  interwoven  with  the  most  favored  nation  clause.  The 
United  Kingdom,  having  duties  on  but  few  articles  and  no  con- 
cessions to  offer,  is  unable  to  make  special  tariff  agreements  and 
must  be  satisfied  with  benefits  reflected  to  it  merely  through  its 
most  favored  nation  clause.  For  no  matter  how  large  the  cir- 
cle of  countries  that  conclude  special  tariff  agreements  with 
conventional  rates,  it  is  plain,  from  what  has  been  said  above, 
that  the  reduction  or  "binding"  of  rates  will  apply  only  to  arti- 
cles which  constitute,  so  as  to  say,  the  special  field  of  the  re- 
spective countries.  These  reductions  or  concessions  may  or  may 
not  be  of  special  importance  to  other  countries  which  receive 
the  more  favorable  rates  through  the  most  favored  nation  clause 
only. 


Protection  creates  a  home  market,  'without  which  the  culti- 
vators of  land  in  America  would  be  but  little  better  off  than  our 
aborigines.— -Hon.    J.    S.    Morrill. 

Protection  furnishes  an  opportunity  for  every  person  to  find 
the  employment  best  adapted  to  his  or  her  genius  and  capacity 
that  Trill  secure  the  largest  income  or  the  greatest  happiness.— 
Hon.  J.   S.  Morrill,  In  the  "American  Economist." 

They  tell  us  that  a  protective  tariff  was  only  designed  for  infant 
Industries,  that  we  have  outgrown  that  infancy  and  are  no  longer 
in  need  of  the  duties  that  enabled  us  to  get  them  started.  We 
have  grown,  it  is  true.  Our  great  industrial  concerns  are  monsters 
now,  but  let  me  tell  you,  as  the  boy  said  who  waited  till  he  had 
grown  up  before  tackling  a  youthful  opponent,  the  other  fellow 
has   grown   up   too. — Hon.   James    S.    Sherman. 

But  the  most  gratifying  feature  of  this  picture  of  banking 
and  financial  conditions  In  our  country  Is  the  fact  that 
deposits  in  savings  banks— those  institutions  for  the  safe- 
keeping of  the  earnings  of  vrorkingmen  and  widows  and 
orphans  and  children  of  the  country — have  increased  from 
$550,000,000  In  1870  to  $4,213,000,000,  in  1911.  What  say  you 
business  men,  of  the  future  of  a  country  whose  vrorking- 
men and  working  women  and  children  have  four  billion 
dollars  laid  aside  for  a  "raiuy  day."— O.  P.  Austin. 


THE  ADVANCE  IN  THE  COST  OF  LIVING. 


The  increasing  cost  in  recent  years  of  the  common  necessaries 
and  comforts  of  life  has  presented  a  serious  problem  to  the 
masses  of  the  people,  not  alone  from  the  practical  side  of  ad- 
justing expenses  to  earnings,  but  also  as  to  the  political  and 
economic  side,  as  to  whether  the  advance  is  due  to  conditions 
peculiar  to  the  system  being  applied  in  our  government.  It  has 
been  charged  and  is  being  constantly  charged  that  it  is  due, 
in  some  mysterious  way,  to  the  protective  tariff  and  to  other 
conditions  assumed  to  be  related  to  the  protective  system. 

The  most  striking  feature  of  the  situation,  however,  is  that 
the  advance  is  not  confined  to  this  country  or  to  the  countries 
having  protective  tariffs,  but  is  world-wide,  and  that  in  every 
country  the  same  kind  of  an  agitation  is  going  on,  with  more 
or  less  effort  to  lay  the  blame  upon  "the  party  in  power,"  or 
upon  some  local  condition.  During  the  summer  of  1911,  serious 
disturbances  occurred  in  several  countries  of  Europe  as  a  re- 
sult of  the  prevailing  high  prices  for  food  supplies.  In  nearly 
all  countries  official  commissions  or  other  investigating  bodies 
have  been  appointed  to  search  for  the  cause  of  the  upward 
movement.  In  Great  Britain,  the  Board,  of  Trade,  which  is  an 
official  organization,  has  made  an  investigation  of  the  cost  of 
living  not  only  in  England  but  also  in  Germany,  France,  Bel- 
gium and  the  United  States.  In  this  country  a  select  com- 
mittee of  the  United  States  Senate  conducted  an  investigation 
which  extended  by  the  co-operation  of  our  consular  officials  to 
all  important  countries,  and  a  number  of  the  States  and  muni- 
cipalities carried  on  independent  inquiries.  Notable  among  the 
latter  were  those  made  by  the  State  of  Massachusetts  and  the 
municipality  of  New  York. 

INFLUENCE  OP  NEW   GOLD   SUPPLIES. 

These  investigations,  while  developing  many  conflicting  opin- 
ions as  to  minor  influences,  have  shown  a  notable  uniformity 
of  results  upon  some  important  phases  of  the  subject.  There 
is  general  agreement  that  the  rapid  increase  which  has  oc- 
curred in  the  supply  of  gold,  the  world's  measure  of  value,  has 
been  an  important  factor.  The  comparison  of  commodities  with 
gold  is  affected  of  course  by  the  supply  of  gold  as  well  as  by 
the  supply  of  commodities,  and  the  world's  stock  of  gold  has 
been  increasing  very  rapidly.  From  the  discovery  of  America 
in  1492  to  the  discovery  of  gold  in  California  and  Australia 
about  1850,  the  world's  gold  production  averaged  less  than  10 
million  dollars  per  annum.  From  1850  to  1890  it  averaged  about 
120  millions  per  annum.  Since  1890  the  increase  has  been  very 
vapid,  as  will  be  seen  by  the  following  table  of  gold  production 
of  the  world,  as  reported  annually  by  the  Bureau  of  the  Mint, 
United  States  Treasury  Department : 

1891 $130,650,000 

•    1892 146,815,100 

1893 157,494,800 

1894 181.175,600 

1895 198.763,600 

1896 202,251,600 

1897 237,073,700 

1898 286,879,700 

1899 , 306,724,100 

1900 255,634,500 

1901 263,374,700 

1902 , 296,737,600 

1903 327,702,700 

50 


ADVANCE   TN  COST  OP  LIVING.  51 

1904 $347,087,300 

1905 380. 288.700 

1906 402.503,000 

1907 41 2.960,600 

1908 442.476.900 

1909 454,145,700 

1910 454,703.900 

1911  (Estimated) 461,000,000 

The  precise  extent  to  which  these  new  supplies  of  gold  enter- 
ing- for  the  most  part  the  bank  reserves  of  the  principal  finan- 
cial centers  and  thus  becoming  the  basis  of  credit,  hive  affected 
prices  can  not  be  determined,  as  the  influence  is  an  intangible 
one,  but  it  is  generally  conceded  to  be  one  of  the  universal 
factors.  The  Bureau  of  Statistics  estimates  that  the  world's 
stock  of  gold  has  about  doubled  in  the  last  25  years,  and  in- 
creased approximately   50  per  cent  in  the  last  decade. 

That  the  leading  economists  and  students  of  the  world  believe 
the  increased  gold  production  one  of  the  basic  causes  of  the  ad- 
vance in  cost  of  living  can  not  be  doubted.  A  series  of  inquiries 
recently  made  among  this  class  of  our  own  people  shows  that 
this  is  the  view  of  a  large  number  of  men  whose  opinions  are 
worthy  of  thoughtful  attention.  Among  those  expressing  this 
opinion  were  Prof.  Irving  Fisher,  Professor  of  Economics  at 
Yale ;  Joseph  French  Johnson,  Dean  of  the  School  of  Commerce, 
New  York  University;  Henry  R.  Seager,  Professor  of  Economics, 
Columbia  University;  E.  W.  Kemmerer,  Professor  of  Economics, 
Cornell  University,  and  many  others. 

GAIN    OP   POPULATION    UPON    FOOD    SUPPLIES. 

In  the  United  States  there  are  also  local  causes  for  the  ad- 
vance, but  not  chargeable  to  the  protective  system.  One  of  these 
causes  is  the  rapid  growth  of  population  and  the  simultaneous 
disappearance  of  new  tillable  land  available  for  homestead  entry. 
Down  to  very  recent  years,  there  had  always  been  an  abun- 
dance of  free  or  cheap  raw  lands  to  which  our  population  con- 
stantly overflowed.  As  the  railroads  were  built  into  the  new 
prairie  States  emigrants  came  from  all  the  countries  of  Europe, 
eager  to  possess  themselves  of  homes  at  almost  no  cost  beyond 
that  of  occupancy.  The  man  with  capital  enough  to  provide  a 
team  of  horses,  wagon  and  plow  could  become  a  producer  of  the 
principal  staples.  One  direct  result  of  these  conditions  and  the 
rapid  settlement  which  ensued  was  that  it  kept  the  prices  of 
farm  products  very  low,  and  often  abnormally  low.  They  fre- 
quently brought  scarcely  enough  to  pay  laborer's  wages  to  the 
farmer  and  the  working  members  of  his  family.  The.  condition 
of  the  farmer  was  a  constant  subject  of  anxious  comment,  and 
it  was  frequently  asserted  that  the  farms  of  the  country  were 
covered  with  mortgages  which  never  could  be  paid. 

These  conditions  have  radically  changed.  There  are  no  more 
rich  prairies  open  to  settlement,  Population  has  spread  over 
them  and  crowded  out  on  the  borders  of  the  arid  region  where 
irrigation  is  necessary  to  sustain  crops.  The  lands  which  re- 
main require  the  expenditure  of  considerable  capital  for  drain- 
age, irrigation  or  clearing,  to  bring  them  into  cultivation.  The 
cities,  with  the  growth  of  the  manufacturing  industries,  con- 
tinue to  grow  rapidly  in  population,  and  the  growth  in  acreage 
of  land  in  cultivation  does  not  keep  pace  with  the  growing  de- 
mand for  food  and  other  farm  products. 

RISING   LAND   VALUES. 

The  effect  of  these  conditions  is  seen  in  the  rising  prices 
of  farming  lands,  the  average  value  of  all  the  farming  land  in 
the  United  States,  exclusive  of  buildings,  having  increased  108 
per  cent  from  the  census  of  1900  to  that  of  1910. 

The  average  value  per  acre  of  all  farms,  including  buildings, 
in  the  several  geographical  divisions  of  the  United  States,  as 
shown  by  the  1910  census,  and  the  percentnge  of  inerease  over 
the  value  shown  by  the  census  of  1900  is  given  on  the  following 
page: 


52 


ADVANCE  IN  COST  OF  LIVING. 


Value 
per  acre 
in  1910. 

Percentage 
of  Incri  ase 

from 
1900  to  1910. 

New  England: 

Maine 

j-       $36.45 

!•  $56.56 
!■   $75.25 

►  $49  92 

►  $23.96 
J-  $21.32 

1 

j*  $18.50 

J 

-  $22.16 
!■   $48.28 

New  Hampshire 

Vermont 

Massachusetts  

36.0 

Rhode  Island  

Connecticut   

Middle  Atlantic: 

New  York 

New  Jersey  

25.3 

Pennsylvania 

East  North  Central: 

Ohio  

Indiana  

Michigan    

80.3 

West  North  Central: 

Iowa  

North  Dakota 

149.7 

Nebraska  

South  Atlantic: 

Delaware   

Maryland 

106  1 

North  Carolina  _    

Georgia  _ 

Florida  

East  South  Central: 

Kentucky  

Alabama    

86.2 

Arkansas  

Oklahoma  

Mountain: 

Montana 

Idaho  

174.7 

Wyoming 

Colorado   

New  Mexico 

289.6 

Utah 

Washington  

159.2 

California  ___ —  | 

MOVEMENT   FROM   FARMS    TO    CITIES    AND   MANUFACTURING 

CENTERS. 

The  growth  of  urban  as  compared  with  rural  population,  as 
shown  by  the  last  four  censuses,  is  as  follows,  all  towns  of 
less  than  2,500  being-  included  in  "rural  population,"  and  all  of 
the  larger  towns  and  cities  in  the  group  designated  as  "urban  :" 


SHARE  WHICH  URBAN  AND  RURAL  POPULATION   FORMED,  RESPECTIVELY, 
IN   THE  TOTAL  POPULATION   OF  THE  UNITED   STATES. 


1910. 

1900. 

1890. 

1880. 

Per  cent. 
46.3 
53.7 

Per  cent. 
40.5 
59.5 

Per  cent. 
W.l 
63.9 

Per  cent. 
29.5 

70.5 

100 

100 

100 

100 

ADVANCE  IN  COST  OF  LIVING.  53 

In  the  last  ten  years  urban,  or  city,  population  increased  34.8 
per  cent,  and  rural  population  increased  but  11.2  per  cent.  The 
total  population  increased  21  per  cent  in  the  same  time,  while 
the  acreage  in  all  of  the  cereal  crops  (including  corn,  wheat, 
oats,  barley,  rye,  buckwheat,  Kaffir  corn  and  rice)  increased 
only  3.5  per  cent,  and  the  actual  yield  in  1909  was  only  1.6 
greater  than  in  1899. 

The  country  produced  58.4  bushels  of  the  cereals  (corn,  wheat, 
oats,  barley,  rye,  buckwheat,  Kaffir  corn  and  rice)  per  head 
of  population  in  1899,  and  only  49.1  bushels  in  1909.  Corn 
is  the  chief  meat-producing  crop  and  the  corn  crop  of  the 
United  States  is  75  per  cent  of  the  world's  crop.  The  acreage 
was  but  3.7  per  cent  greater  in  1909  than  in  1899,  and  the  yield 
was  actually  4.3  per  cent  less,  and  the  corn  crop  of  1911  was  less 
than  that  of  1909. 

The  hay  crop  of  1911  was  the  smallest  since  1895,  being  47,440,- 
000  tons,  compared  with  an  average  of  63,507,400  tons  for  the 
next  previous  five  years,  and  hay  is  a  vital  factor  in  the  price 
of  milk,  butter  and  beef. 

These  figures  show  the  conditions  now  affecting  the  pro- 
duction and  prices  of  food.  But  the  prices  of  clothing  and 
shoes  are  almost  as  directly  related  to  agricultural  conditions 
as  are  the  prices  of  meat  and  flour.  Cotton,  Wool  and  hides  are 
the  raw  materials  in  the  one  case,  as  corn,  wheat  and  hay  are 
in  the  other,  and  they  are  surrounded  by  the  same  general  con- 
ditions. The  cost  of  food,  clothing,  and  shelter  is  the  basis 
upon  which  the  entire  fabric  of  prices  is  constructed.  When  they 
go  up  wages  must  go  up,  and  through  wages  the  cost  of  all 
manufactured  goods,  of  transportation,  and  of  conducting  every 
kind  of  business  are  affected. 

it  is  generally  recognized  from  these  facts  that  one  of  the 
important  factors  in  the  rise  of  prices  in  the  United  States  is 
the  change  in  fundamental  conditions  affecting  the  supplies  of 
food  and  raw  materials.  The  more  complete  occupation  of 
the  country  has  affected  the  cost  of  primary  products.  We  are 
not  getting  as  much  for  nothing  as  we  did  in  the  years  when 
timber  was  counted  an  encumbrance  to  the  soil  and  land 
was  free  to  all  who  would  cultivate  it  or  grow  food  animals 
upon  its  unfilled  areas. 

Moreover,  this  change  in  conditions  within  the  United  States 
has  i0»idoubtedly  been  more  or  less  influential  upon  world  prices, 
for  the  United  States  in  the  past  has  been  one  of  the  largest 
sellers  of  food  stuffs  in  all  important  markets.  Our  exports  of 
wheat,  including  flour  in  terms  of  wheat,  were  but  69,000,000 
bushels  in  1911,  against  216,000,000  a  decade  earlier;  of  corn  66,- 
000,000  bushels,  against  213,000,000  in  1900;  of  cattle  150,000 
against  352,000,000  in  1901.  As  our  population  gains  upon  our 
own  supplies  we  have  less  to  sell  abroad,  and  the  world  has  no  new 
source  of  supply  able  to  take  the  place  of  the  United  States.  In- 
deed, in  European  countries  the  same  tendency  for  population 
to  gain  upon  food  supplies  is  evident.  Their  lands  were  long 
ago  quite  fully  in  cultivation,  but  the  population  goes  on  in- 
creasing. 

The  record  shows  that  the  class  of  commodities  which  have 
everywhere  had  the  greatest  advance  are  those  of  which  the 
United  States  was  formerly  a  large  exporter  and  upon  which 
prices  in  the  United  States  have  been  lower  than  in  Europe. 
Upon  the  prices  of  such  commodities  our  customs  tariff  plainly 
has  not  been  a  controlling  influence. 

BUREAU   OF  LABOR  FIGURES   ON  ADVANCE   OF  PRICES. 

The  Bureau  of  Labor  of  the  United  States  has  made  a  very 
careful  compilation  of  wholesale  prices  upon  257  common  com- 
modities, averaged  by  the  highest  and  lowest  prices  of  each 
month  in  every  year,  from  1890  to  1911,  inclusive. 

Its  figures  show  that  the  general  price  level  upon  all  these 
commodities  advanced  from  1900  to  1911  by  17  per  cent. 

Farm   products   advanced -. 47.9 

Food,  etc 26.0 


54 


ADVANCE  IN  COST  OP   LIVING. 


Cloths  and  clothing   12.0 

Fuel  and  lighting  1.2 

Metals  and  implements  decreased 0.9 

!     Lumber  and  building  materials  advanced 31.3 

Drugs  and  chemicals  advanced 4.0 

House  furnishing  goods  advanced 4.7 

Miscellaneous  commodities  advanced 19.5 

It  will  be  seen  that  the  largest  advance  was  in  farm  products 
and  the  next  largest  in  lumber  and  building  materials,  both  of 
•which  are  largely  traceable  to  the  general  cause  stated  above, 
and  in  the  matter  of  farm  products  can  not  be  charged  to  con- 
trol or  manipulation  by  trusts. 

Caution  should  be  observed  in  comparing  prices  with  past 
years  against  using  the  years  1894-1897  as  a  basis.  This  is  fre- 
quently done  for  the  purpose  of  making  the  advance  appear  as 
large  as  possible,  but  the  years  1896-97  were  during  a  period 
of  abnormal  conditions.  Prices  were  lower  then  than  in  the 
preceding  years  or  at  any  time  within  the  past  fifty  years.  Farm 
products,  particularly  during  those  years  of  low  tariff,  actual 
or  prospective,  were  so  depressed  that  conditions  in  agriculture 
were  ruinous. 

The  general  average  price  of  the  entire  list  of  257  commod- 
ities covered  by  the  Bureau  of  Labor  compilation  in  1911  was 
129.3  per  cent  of  the  average  of  the  same  commodities  for  the 
ten  years  1890-1899. 

RELATIVE    PRICES    OP    RAW    AND    MANUFACTURED    COMMO- 
DITIES,  1890  to   1911. 

The  Bureau  of  Labor  has  made  another  table,  showing  the 
changes  in  the  prices  of  raw  commodities  and  manufactured  goods 
separately,  for  each  year  since  and  including  1890.  The  fig- 
ures represent  the  percentage  of  each  year's  average,  based  on 
the  average  price  of  the  ten  years  1890-1899.  In  other  words, 
the  prices  of  raw  commodities  in  1890  averaged  115  per  cent  of 
the  prices  of  the  same  commodities  during  the  ten  year  period 
1890-1899,  and  in  1911  they  were  139.9  per  cent  of  the  same  base : 


Years. 

Raw 
commodities. 

Manufactured 
commodities. 

All 
commodities. 

1890 

115.0 

116.3 

107.9 

104.4 

93.2 

91.7 

84.0 

87.6 

94.0 

105.9 

111.9 

111.4 

122.4 

122.7 

119.7 

121.2 

126.5 

133.4 

125.5 

136.8 

139.7 

139.9 

112.8 

110.6 

105.6 

105.9 

96.8 

94.0 

91.9 

90.1 

93.3 

100.7 

110.2 

107.8 

110.6 

111.5 

111.3 

114.6 

121.6 

128.6 

122.2 

•123.9 

129.6 

126.6 

112.9 

1891 __ 

111.7 

1892  — 

106.1 

1893.     

105.6 

1894 

96.1 

1895 

93.6 

1896  ._ ___ 

90.4 

1897 

1898 

1899 

89.7 
93.4 
101.7 

1900 

110.5 

1901 

1902 

1903 

108.5 
112.9 
113.6 

1904 

113.0 

1905 

115.9 

1906 _. _. 

122.5 

1907 _ 

129.6 

1908 

12"  8 

1909 

1910 

131.fi 

1911 _ 

T29.3 

This  table  indicates  that  manufactured  goods  have  advanced 
less  than  raw  materials,  although  the  raw  materials  of  one 
column  enter  into  the  cost  of  the  manufactures  in  the  other 
column.  For  example,  hides  are  included  in  raw  commodities 
and  shoes  in  the  manufactured  goods. 


CANADIAN   PRICES   ALSO   ADVANCE. 

The  Canadian  Department  of  Labor  has  been  publishing  a 
similar  table  of  prices  and  percentages  for  261  commodities  in 
Canada,    using   average   prices    for   the   period    1890-1899    as   the 


ADVANCE  IN  COST  OF  LIVING.  55 

base.  This  table  shows  the  average  percentage  for  all  of  these 
commodities  in  1899  to  have  been  127.3  per  cent.  While  the  list 
of  commodities  is  not  identical  with  that  used  by  the  Bureau 
of  Labor  of  the  United  States  the  final  figures  are  so  near  each 
other  that  they  testify  to  each  other's  accuracy  and  show  that 
there  is  little  difference  between  the  general  levels  of  prices  in 
Canada  and  the  United  States. 

The  Massachusetts  Commission  sent  two  representatives  to 
Canada  to  investigate  conditions  there  with  particular  relation 
to  food  supplies.  The  one  reporting  upon  farm  products  said  : 
"The  low  prices  of  two  or  three  years  ago  and  the  high  price 
of  corn  caused  the  farmer  to  raise  fewer  hogs  and  cattle  and 
to  sell  his  corn.  I  heard  one  remark  frequently  that  the  boys 
of  this  generation  flock  to  the  cities,  securing  employment  on 
electric  cars,  in  factories  and  stores,  thus  leaving  the  farmer 
alone  to  hire  high-priced  help  of  an  undesirable  character,  or 
else  to  raise  just  enough  for  home  use,  thereby  allowing  90  per 
cent  of  producing  capability  to  be  idle." 

The  other,  reporting  upon  groceries,  said:  "Taking  into  con- 
sideration all  the  foregoing  data,  it  is  the  opinion  of  the  writer, 
based  on  his  observations  and  comparisons  as  far  as  he  has  gone 
in  the  research,  that  the  consumer  gets,  on  an  average,  fully 
as  much  value,  more  variety,  and  in  some  cases  a  better  article 
for  his  money  in  the  United  States  than  in  Canada." 

THE  ADVANCE  IN  PRICES  IS  WORLD  -WIDE. 

That  the  advance  in  prices  is  general  the  world  over,  and 
therefore  not  chargeable  to  tariffs,  trusts,  or  other  conditions 
local  to  the  United  States  is  evidenced  by  the  following  extracts 
from  consular  reports  and  other  reliable  sources  abroad  which 
it  will  be  noted  represent  all  parts  of  the  world  and  include 
countries  with  low  tariffs  as  well  as  others  with  protective 
tariffs. 

GREAT   BRITAIN. 

[From  Consul  A.  W.  Swalm,  Southampton.] 
During  the  past  five  years  there  has  been  an  advance  of  20 
per  cent  in  the  purchase  price  of  the  following  necessities  in 
the  markets  of  the  Southampton  consular  district :  Fresh  beef, 
mutton,  bacon,  hams,  butter,  eggs,  fruits,  tea,  dried  fruits,  sugar, 
coffee,  fuel,  tinned  goods,  women's  apparel,  footwear,  clothing, 
cotton  goods,  bedding,  furniture,  and  underwear.  All  these  ar- 
ticles enter  this  port  duty  free,  except  tea,  coffee,  sugar,  dried 
fruit,  and  those  things  which  have  an  added  sugar  content. 
There  has  been  an  advance  in  the  price  of  nearly  every  class 
of  raw  material.  The  price  of  flour  has  fluctuated,  but  is  classi- 
fied as  among  the  dearer  commodities. 

[From  Consul  Halstead,  Birmingham.] 

For  some  months  there  has  been  a  steady  increase  in  the  cost 
of  some  of  the  principal  articles  connected  with  the  grocery 
and  provision  trades,  which  has  made  the  price  to  the  consumer 
higher. 

Coffee  has  been  expensive  throughout  the  year  and  common 
tea  very  high,  while  rice  has  risen  because  of  short  crops. 
Sugar  has  been  steadily  advancing  since  it  became  apparent 
that  the  summer  drought  would  seriously  affect  the  beet  crops 
of  Germany  and  other  Continental  producers  of  beet  sugar. 

HIGHER  BRITISH    PRICES    FOR   FOOTWEAR. 

The  following  announcement  was  made  on  June  20  by  the  Fed- 
eration of  Boot  and  Shoe  Manufacturers  of  Great  Britain : 

In  view  of  the  coming  season's  trade  the  Federation  jof  Boot  and  Shoe 
Manufacturers  of  Great  Britain  have  further  considered  the  continuous  ad- 
vances in  the  prices  of  all  materials  used  in  the  manufacture  of  boots  and  shoes 
and  feel  It  incumbent  upon  them  to  warn  the  public  against  the  expectation 
of  being  able  to  purchase  the  same  quality  of  boots  and  shoes  at  the  same 
prices  as  hitherto.  To  continue  to  produce  boats  and  shoes  to  sell  at  present 
fixed  prices  means  the  use  of  inferior  leather,  which  is  invariably  injurious  to 
the  health  of  the  wearers,  and  is  not  economical  in  the  end  on  account  of  its 
bad  wearing  properties.  If  the  public  want  genuine  boots  and  shoes  during 
the  coming  season,  they  must  expect  to  pay  considerably  more  money  for  the 
former  standard  quality. 


*6 


ADVANCE  IN  COST  OF  LIVING. 


[From  Consul  General  John  L.  Griffiths,  London.] 
The  London   Daily  Mail   of  August   25   calls   attention  to  the 
increase  during-  the  last  15  years  in  the  prices  of  almost  all  the 
articles  of  food  which  enter  into  the  daily  consumption  of  the 
great  masses  of  people  in  London. 

The  following  table,  compiled  from  the  Fourteenth  Abstract  of 
Labor  Statistics  of  the  United  Kingdom,  issued  by  the  Board  of 
Trade,  shows  that  only  in  potatoes  was  there  a  decrease  in  price 
of  the  articles  enumerated. 

Tables  from  the  British  Government  statistics  referred  to 
show  the  percentage  variations  of  retail  prices  of  food  in  Lon- 
don in  the  15  years,  the  intervening  year  of  1900  being  taken  as 
the  unit  basis': 


Articles. 

1896. 

1900. 

1910. 

Articles. 

1896. 

1900. 

1910. 

Bread 

93 

100 

114.8 

Cocoa  

93.3 

100 

100 

Flour  

88.2 
92.2 

100 
100 

120.6 
113.5 

100 

100 

124  3 

Beef    

Jam,      treacle, 

Mutton 

89.7 

100 

104.4 

marmalade 

100 

100 

109.4 

Pork 

94 

100 

105.2 

Currants   

83.3 

100 

126.4 

Bacon   

78.1 

100 

138.9 

Raisins   

77.8 

100 

105.6 

Butter 

95.1 

100 

106.4 

Rice 

92.9 

100 

93.5 

Eggs 

91.2 

100 

112 

Tapioca    

80 

100 

105.8 

Cheese 

80.6 

100 

100 

Oatmeal  

100 

100 

113.9 

Tea  

90 

100 

100     . 

Potatoes   

88.5 

100 

80.1 

The  Co-Operative  Wholesale  Societies  (Ltd.)  have  prepared 
the  following  table  showing  the  increased  cost  of  certain  ar- 
ticles in  the  United  Kingdom  since  1898  : 


Articles. 

1898. 

1906. 

1910. 

Bacon  and  hams 

Butter   .__ 

Cents  per 

pound. 

9.92 

22.70 

10.48 

2.78 

6.48 

2.46 

2.98 

32.34 

Cents  per 

pound. 

13.28 

25.64 

13.10 

2.18 

9.78 

2.36 

a  3.66 

30.84 

Cents  per 
pound. 
16.38 
25  74 

Cheese   _ 

13  12 

Flour 

Lard  

Meal 

Sugar   

Tea 

2.46 
13.66 

2.32 
a  4.06 
30.96 

a  The  sugar  duty  Imposed  In  1901  was  reduced  from  $1.01  to  $0.44  in  1908. 

[From  Consul  Walter  O.  Hamm,  Hull,  England.  1 
Some  facts  and  figures  recently  published  here  and  elsewhere 
relating  to  the  rise  in  wages  and  the  cost  of  living  make  it  evi- 
dent that  conditions  in  England  in  these  respects  are  similar 
to  conditions  in  America.  The  figures  are  taken  from  Board  of 
Trade  returns  and  the  publications  of  co-operative  wholesale  so- 
cieties, or  were  obtained  by  personal  inquiry.  They  show  that 
where  there  has  been  a  moderate  advance  in  the  rate  of  wages 
there  has  been  a  much  greater  advance  in  the  cost  of  living. 

[From  Consul  H.  D.  Van  Sant,  Dunfermline.] 
According  to  several  of  the  leading  papers  of  Great  Britain, 
the  cost  of  living  in  luxuries  and  necessities,  food,  clothing,  and 
transport  has  increased  enormously  in  price  during  the  past 
nine  years.  At  the  present  time  the  increase  over  1902  is  in 
many  instances  more  than  25  per  cent,  and  the  average  increase 
in  22  leading  commodities  (as  worked  out  by  the  Economist)  is 
23  per  cent.  Since  the  coronation  of  King  Edward  VII  the 
price  of  foodstuffs  has  gone  up  a  fraction  over  two  shillings 
(48.6  cents)  on  the  pound  sterling  ($4.86G). 


GERMANY. 

[From  Consul-General  Frank  Dillingham,  Coburg.] 

During  the  five  years  last  past  the  cost  of  living  in  this  part 

of  Germany  in  particular,  and  throughout  the  Empire  generally, 

has  materially  increased.     In  this  duchy  and  city  it  has  doubled. 

This  increase  in  numerous  instances  has  caused  privations,  es- 


ADVANCE  IN  COST  OF  LIVING. 


57 


pecially  among  the  laboring  classes,  because  the  average  wage 
remains  the  same  as  it  was  when  the  necessities  of  life  co\st- 
50  per  cent  less. 

[From  Consul-General  A.  M.  Thackara,  Berlin.] 
Living  conditions  in  Germany,  as  in  most  parts  of  the  civil- 
ized world,  are  seriously  affected  by  the  continued  rise  in  the 
prices   of   food   products,   many   of   the   commodities   having   ad- 
vanced far  above  all  previous  records. 

[From  Consul-General  W.  L.  Lowrie,  Carlsbad,  Bohemia.] 
The  cost  of  living  has  increased  rapidly  in  the  last  ten  years 
in  western  Bohemia. 

Since  the  demonstrations  on  the  part  of  laboring  men  against 
the  high  cost  of  living,  meat  from  Argentina  has  been  admitted 
to  Austria-Hungary  and  5,000  kilos  (11,000  pounds)  were  placed 
on  sale  in  the  open  market  in  January.  This  was  sold  around 
16  cents  a  pound,  and  the  entire  shipment  was  sold  in  a  few 
hours.  The  prices  of  foodstuffs  being  so  high  here  and  the 
wages  low,  workmen  seldom  eat  meat,  but  live  on  soups,  black 
bread,  and  potatoes.  Owing  to  the  number  of  visitors  each  year, 
the  prices  quoted  are  below  rather  than  above  the  average. 
Rents  have  increased  enormously  in  the  last  ten  years. 

[From  Consul-General  Robert  P.  Skinner,  Hamburg.] 
The  prices  of  meat,  after  having  declined  somewhat  in  1906 
and  1907,  again  resumed  their  upward  tendency  in  spite  of  the 
satisfactory  development  of  German  cattle  breeding,  which  was 
always  pointed  to  as  likely  to  remedy  existing  conditions  unti- 
mately.     Nevertheless,  the  chamber  of  commerce  states : 

The  quantities  of  meat  offered  for  sale  do  not  show  a  decrease  and  the  market 
prices  of  cattle  are  now  lower  than  they  used  to  be,  but,  notwithstanding,  the 
cost  of  meat  mounts  up  hieher  for  the  reason  that  the  production  does  not  keep 
pace  with  domestic  consumption. 

[From  Consul  Brittain,  Prague,  Bohemia.] 
Since  1907  the  following  articles  have  advanced  in  price  as 
indicated  by  percentage,  and  for  the  better  qualities  even  greater 
advances  have  been  made:  Lard  17,  butter  20,  flour  50,  potatoes 
25,  buttermilk  10,  bread  40,  meal  60,  sugar  20,  veal  12,  pork  10. 
In  October  the  coffee  houses  in  Prague  made  a  further  advance 
in  prices,  averaging  10  per  cent.  Prices  of  fuel  have  also  ad- 
vanced, in  fact,  almost  every  article  entering  into  household  ex- 
penses has  advanced  in  price. 

[From  Consul  Talbot  J.  Albert,  Brunswick,  Germany.] 
The  increased  cost  of  living  due  to  the  higher  prices  of  food- 
stuffs is  the  cause  of  much  complaint  in  Germany.    The  advances 
shown  by  the  most  important     articles  of  food  during  the  past 
year  are  shown  by  the  following  table  of  wholesale  prices: 


Articles. 

February, 
1911. 

February, 
1912. 

Wheat 

bushels  a._ 

$1.26 

$1.38 

Rye 

~ - „do_„_ 

.97 

1.28 

Oats 

do..._ 

1.12 

1.S9 

Corn  

do—. 

.88 

1.21 

Barley  (cattle  feed)... 

— do.... 

.92 

1.20 

Peas    

17 

21 

Rye  flour  

do— 

.0203 

.0248 

Wheat  flour 

do. 

.0259 

.0273 

Wheat  bran  

do 

.0105 

.0155 

Rye  bran  ___ 

do— 

.0103 

.0155 

Straw   

100  pounds.. 

.486 

.605 

Hay 

do— 

.5076 

.8856 

Coffee i 

pound.. 

.1183 

.1415 

Sugar  

do— 

.0199 

.0332 

Table  beans _._ 

-do— 

.0324 

.0432 

Lentils   

do— 

.0216 

•      .0432 

Potatoes  

100  pounds.. 

.54 

1.188 

Beef 

pound.. 

.1728 

.1728 

Beef  (belly  piece) 

do— 

.1296 

.1404 

Pork   

do_... 

.1404 

.1404 

Veal  - 

do.... 

.1296 

.1612 

Mutton 

do- 

.1404 

.1404 

Hutter    

do 

.2376 

.30 

.1129 

.  2808 

Rgjfs .      

.36 

Lard   

.1021 

a  60  pounds. 


58  ADVANCE  IN  COST  OF  LIVING. 

The  only  article  in  the  above  table  showing-  a  decrease  is  lard, 
the  lower  price  of  which  was  due  to  the  scarcity  of  fodder,  which 
forced  the  farmers  to  slaughter  a  large  number  of  hogs  and 
throw  the  product  on  the  market.  The  scarcity  of  feed  also 
forced  the  sale  of  a  large  number  of  cattle,  which  accounted 
for  the  small  increases  in  meat  prices. 

AUSTRIA. 

[From  Consul  William  J.  Pike,  Relchenberg.] 
In  all  parts  of  Austria  meetings  have  been  held  recently  to 
protest  against  the  continuous  advance  in  the  prices  of  all  kinds 
of  foodstuffs.  The  public  meetings  are  generally  attended  by 
citizens  of  all  classes,  for  the  hard  times  caused  by  the  prevail- 
ing high  cost  of  living  are  experienced  not  only  by  the  working 
classes,  but  by  all  engaged  in  trade. 

There  was  recently  held  in  Eeichenberg,  the  principal  city  of 
northern  Bohemia,  such  a  meeting  of  protest,  which  was  at- 
tended by  many  thousand  citizens.  In  its  action  and  conduct 
the  body  did  not  take  on  a  political  character,  but  rather  a 
general  protest  of  citizens,  who,  freely  admitting  a  general  ad- 
vance in  the  scale  of  wages  in  all  branches  of  industry,  as  well 
as  great  industrial  awakening,  contended  that  prices  had  ad- 
vanced so  rapidly  in  all  food  products  as  to  have  the  effect  of 
creating  most  distressing  conditions. 

[From  Oonsul-General  Charles  Denby,  Vienna.] 
In  common  with  the  rest  of  the  world,  Austria  has  been  af- 
fected by  the  increased  cost  of  living,  and  complaints  are  made 
on  every  hand.  This  increase  has  been  explained  in  Austria  as 
due  to  a  variety  of  causes,  viz,  somewhat  to  increased  pro- 
duction of  gold,  though  the  demand  for  gold  has  also  largely 
increased ;  to  organizations  of  labor,  as  it  is  stated  that  every 
successful  strike  has  left  a  permanent  effect  on  the  price  of 
some  commodity ;  to  tariffs,  for  it  is  charged  that  Austrian 
producers  take  the  entire  benefit  of  the  tariff,  keeping  their 
prices  as  high  as  possible  without  encouraging  importation; 
but,  above  all,  this  increase  is*  said  to  be  due  to  the  advance, 
numerically,  in  population,  the  increase  in  education,  and  the 
rise  in  material  culture. 

Whatever  its  causes,  it  has  been  severely  felt,  not  more  by 
the  poorer  classes  than  by  those  of  moderate  means  depen- 
dent on  a  fixed  revenue  from  investments.  In  this  country,  as 
elsewhere,  the  increased  cost  of  living  has  been  unaccompanied 
by  an  increased  return  from  securities.  Kents  have  increased 
to  the  tenant,  provisions  are  dearer  to  the  consumer,  clothing 
costs  more,  but  the  revenue  from  bonds,  shares,  and  real  estate 
has  remained  at  the  same  level. 

FRANCE. 

[From  Consul-General  Frank  H.  Mason,  Paris.! 

The  increased  cost  of  the  ordinary  foodstuffs  in  Paris  and 
throughout  northern  France  has  become  the  most  generally  ab- 
sorbing topic  of  public  interest.  Partly  by  reason  of  the  long, 
hot,  dry  summer,  which  affected  disastrously  grass,  clover,  po- 
tatoes, and  garden  vegetables — practically  everything  except 
grapes  and  hops — the  prices  of  meats  and  produce  of  all  kinds 
advanced  during  the  month  of  September  to  figures  unprece- 
dented in  the  markets  of  Paris. 

The  papers  are  filled  with  cartoons  and  reports  which  de- 
scribe the  situation  and  show  comparisons  between  the  cost  of 
certain  staple  articles  now  and  at  the  corresponding  date  one 
year  ago.     Some  of  these  comparative  prices  are  given  below: 


Articles. 

1910. 

1911. 

Mutton 1.1  pounds- 
Beef  do 

Coffee . do 

Butter — do 

Sugar    —2.2  pounds— 

$0.17 
.32 
.32 
.40 
.36 
.16 
.24 
.05 

$0.28 
.42 
.40 
.46 
.44 
.22 
35 

Milk 1.05  quarts— 

.07-. 10 

ADVANCE  IN  COST  OF  LIVING. 


59 


[From  Consul  James  E.  Dunning,  Havre.] 
The  cost  of  living  in  this  city  (Havre)  has  considerably  in- 
creased in  the  past  ten  years,  and  is  constantly  the  subject  of 
French  comment  and  continual  complaint  on  the  part  of  those 
whose  salaries  remain  unchanged.  Moreover,  there  is  every  in- 
dication that  the  augmentation  of  prices  will  continue.  The 
consulate  has  received  from  a  recent  authority  the  following 
statement  showing  the  percentage  of  increase  in  the  cost  of 
food,  fuel,  etc.,  during  the  period  of  five  years :  Bread,  15  ;  beef, 
22 ;  veal,  14 ;  mutton,  25 ;  butter,  14 ;  cheese,  25 ;  fish,  50 ;  pre- 
served fish,  35;  fresh  vegetables,  15;  dry  vegetables,  30;  mac- 
aroni, etc.,  20 ;  condiments,  25 ;  pastry,  25 ;  edible  oils,  15 ;  pe- 
troleum, 10 ;  naphtha,  30 ;  coal,  34 ;  charcoal,  24 ;  coffee,  25 ;  choc- 
olate, 25;  candles,  10;  crockery,  30.  This  authority  concludes 
that  the  cost  of  ordinary  articles  of  household  consumption 
has,  during  five  years,  increased    on  an  average  of  25  per  cent. 

[From  Consul-General  Skinner,  Marseilles.] 
The  cost  of  many  articles  of  food  increased  considerably  dur- 
ing the  past  decade,  among  the  articles  being  the  following,  the 
price  representing  2.2  pounds :  Bacon,  salted,  46  to  48  cents ; 
beef,  ordinary  cuts,  42  to  48  cents ;  and  ham,  46  to  52  cents. 
During  the  decade  the  price  of  chicken  increased  from  68  to 
77  cents  each ;  and  eggs,  per  dozen,  from  23  to  34  cents. 


ITALY. 

[From  Consul  Frank  Deedmeyer,  Leghorn.] 
The  cost  of  living  has  increased  very  rapidly  at  Leghorn  dur- 
ing the  last  two  years,  especially  as  regards  food  products. 
Wages  of  factory  employees  and  of  common  laborers,  including 
domestic  servants,  are  to-day  75  per  cent  higher  than  in  the 
spring  of  1909. 

The  following  list  gives  the  prices  of  the  ordinary  items  which 
enter  into  the  cost  of  living : 


Articles. 


1911. 


Wine per  quart. 

Bread  per  pound. 

Meats  do 

Coffee  — do 

Butter  __ do — 

Olive  oil per  quart- 
Fish  per  pound- 
Salt  do... 

Sugar   do.__ 

Potatoes do — 


$0,055-0.092 

$0,118-0.137 

.026-  .035 

.035-  .053 

.088-  .210 

.184-  .315 

.263-  .832 

.438-  .480 

.219-  .263 

.307-  .350 

.912-1.824 

1.461-1.828 

.078-  .175 

.157-  .263 

.053 

.053 

.131 

.144 

.014 

.018 

Men's  clothing  sold  in  1909  for  $11.58  to  $16.40  per  suit,  and 
in  1911  for  $13.50  to  $17.37.  In  1909  a  five-rdom  apartment  rented 
for  $4.82  to  $6.75  per  month,  and  in  1911  for  J&6.75  to  $9.65. 
Apartments  of  10  to  12  rooms  rented  for  $9.65  to  $15.44  per 
month  in  1909,  and  $13.50  to  $19.30  in  1911.  Domestic  ser- 
vants received  $2.32  to  $2.86  per  month  in  1909,  and  $4.83  to 
$6.75  in  1911. 

[From  Consul  Michelson,  Turin,  Italy.] 
The  cost  of  living  increased  over  the  already  high  level  of 
1909.  Turin  was  especially  affected  (particularly  as  regards 
rent)  by  the  increase  in  the  cost  of  living.  The  rise  in  the 
price  of  commodities  during  the  year  was  brought  prominently 
before  the  Italian  Parliament,  but  no  legislation  regarding  it 
was  enacted.  The  price  of  meat  in  the  Department  remained 
high,  as  in  1908  and  1909,  but  for  a  different  reason.  In  those 
years  the  high  price  was  due  to  the  very  poor  hay  and  forage 
crops,  but  in  1910,  a  year  of  abundant  hay  and  forage,  farmers 
limited  sales  as  much  as  possible  in  order  not  to  lower  profits. 
Up  to  a  few  years  ago  the  Department,  and  Italy  as  a  whole, 
exported  cattle ;  now  cattle  are  imported,  the  value  of  the  re- 
ceipts in  1910  being  about  double  those  in  1908  and  1909. 


60 


ADVANCE  IN  COST  OF  LIVING. 


[From  Consul  Charles  M.  Caughy,  Milan.] 
In  no  place  in  Italy  is  the  increased  cost  of  living  more 
keenly  felt  than  in  Milan,  and  the  reasons  for  it  appear  for 
the  most  part  fictitious.  The  cost  of  flour  has  increased  from 
38  lire  (lira  —  19.3  cents)  per  220  pounds  in  1908  to  45  lire  in 
1910,  bread  from  0.40  lira  per  2.2  pounds  to  0.48  lira;  sugar  from 
1.42  lira  per  2.2  pounds  to  1.50  lira,  rice  from  0.40  lira  per 
2.2  pounds  to  0.48  lira,  milk  from  0.23  lira  per  liter  to  0.30 
lira,  eggs  from  0.80  lira  per  dozen  to  1.60  lira.  The  cost  of 
butter  has  increased  15  per  cent,  coffee  10  per  cent,  vegetables 
in  general  15  per  cent,  and  fruit  30  per  cent.  The  price  of 
meat  is  steadily  increasing,  and  is  practically  prohibitive  to 
many  people.  The  price  of  beef  for  roasting  has  risen  from 
2.20  lira  per  2.2  pounds  in  1904  to  2.80  lira  in  1910,  fillet  from 
3.20  to  3.50  lira,  liver  from  2.50  to  3.50  lira,  and  kidney  from 
1.80  to  2.50  lira.  The  following  table  shows  the  prices  of  a 
number  of  farm  and  dairy  products  in  Lombardy  in  1904  and 
1908: 


Articles. 

1904. 

1908. 

Wheat 

Lire. 
23.70 
17.80 
17.00 
20.30 
10.30 
62.70 

107.50 

11.60 

2.41 

85.00 

Lire. 

27.06 

Rye 

Oatg 

Rice  _ 

Hay  

|  i  j 

Mi 

I'M 

do 

do. 

__              _______  ___^.-__ 

19.40 
19.20 
22.55 
13.00 
69.40 

Live  swine  

Milk  ._•_ 

do. 

26.5  gallons— 

132.65 
15.60 

Butter 

Cheese 

-— - 

2.2  pounds.. 

220  nounds 

2.65 
175.00 

House  rents  have  advanced  about  30  per  cent  in  three  years. 
It  is  practically  impossible  to  rent  a  house  or  an  apartment 
for  less  than  three  years,  the  rent  payable  six  months  in  ad- 
vance, and  the  tenant  very  seldom  has  the  privilege  of  rerent- 
ing. 

[From  Consul  J.  A.  Smith,  Genoa,  Italy.] 

The  past  few  years  have  witnessed  a  general  increase  through- 
out Italy  in  the  cost  of  living.  This  has  been  especially  notice- 
able in  the  larger  cities  and  has  extended  to  practically  every 
variety  of  food  product,  but  more  particularly  to  meats.  In 
no  city  in  the  Kingdom  has  the  situation  been  more  keenly  felt 
than  in  Genoa,  and  it  is  only  in  Rome  that  prices  of  meat  have 
equaled  those  at  Genoa.  The  present  (June)  local  prices  for 
various  food  products  in  Genoa,  which  have  shown  little  If 
any  advance  during  the  past  year,  are  as  follows,  per  pound : 
Wheat  flour,  5y2  cents;  bread,  5%  cents;  butter,  30  to  35  cents; 
sugar,  15  cents;  beef,  25  to  35  cents;  veal,  23  to  35  cents;  chick- 
ens, 25  to  30  cents;  lamb,  20  to  23  cents;  pork,  20  to  23  cents; 
coffee,  40  to  50  cents.  Eggs  are  from  24  to  48  cents  per  dozen, 
and  milk  six  to  nine  cents  per  quart. 


SWITZERLAND. 

[From  Consul  D.  I.  Murphy,  St.  Gall,  April  28,  1911.] 
The  Swiss  Statistical  Society  Issues  a  quarterly  bulletin  giv- 
ing prices  of  the  articles  of  food  found  upon  the  tables  of  the 
working  classes.  The  editor  of  this  bulletin  uses  the  reports 
from  the  police  departments  of  the  capitals  of  the  22  Swiss  Can- 
tons and  eight  equally  important  centers  of  population.  An 
analysis  of  the  bulletins  from  January,  1905,  to  January,  1911, 
indicates  largely  increased  cost  of  living.  Not  only  food,  but 
rents,  clothing,  and  almost  every  article  used  in  the  household 
have  gone  up  within  the  same  period.  There  has,  however,  been 
no  proportionate  increase  in  the  wages  of  working  people. 
But  four  kinds  of  meat  are  quoted  in  the  report — beef,  veal, 
pork  and  bacon.  These  have  gone  up  in  price  25  per  cent  since 
January,   1905. 


ADVANCE  IN  COST  OP  LIVING. 


61 


DENMARK. 

[Prom   Minister  Maurice  P.    Egan.] 

From  statistics  prepared  for  the  Danish  Rigsdag  in  1908,  be- 
fore the  introduction  of  a  bill  suggesting  the  increase  of  salary 
for  certain  Danish  officials,  it  appears  that  the  cost  of  the 
necessaries  of  life  during  the  six  previous  years  had  increased 
15  to  20  per  cent,  and  that  wages  had  increased  in  the  same 
period  10  to  15  per  cent. 

The  following  statement  shows  the  average  price  of  leading 
foods,  per  Danish  pound  (1.1  American  pounds),  in  Copenhagen 
in  1905in  1905,  1907  and  1909 : 


Articles. 

1905. 

1907. 

1909. 

Bacon  - 

Cents. 
15 
15 
28 
31 
9  to  15 

3 
16 
18 

5% 
16 

Cents. 
16% 
16% 
29 
47 
10  to  17 

3 

18 
19 

5 
17 

Cents. 
24 

Beef  

__do 

16 

Butter 

Eggs 

Fish 

Flour 

Margarln 

score— 

pound— 

"™"I"™"~— "~"— "do"" 

29 

48 

9  to  17 

3% 

19 

Pork 

Sugar  

Veal 

do. 

— . do 

_    _                               do 

17% 
'5% 
17 

The  foregoing  are  average  prices  for  average  qualities.  The 
prices  of  beef,  pork,  and  veal  of  the  best  quality  range  up  to 
33,  24,  and  24  cents  per  Danish  pound,  respectively. 

The  price  of  other  articles  of  food,  such  as  vegetables  and 
fruit,  for  which  no  statistics  are  available,  have  increased  say 
20  per  cent  in  the  last  six  years,  and  the  better  qualities  of 
clothing,  boots,  shoes,  etc.,  have  also  advanced  considerably  in 
price. 

BELGIUM. 
[From  Consul  H.  Abert  Johnson,  Liege.] 
Up  to  the  present  time  Belgium  enjoyed  special  advantages, 
which  enabled  her  to  compete  successfully  with  the  leading  in- 
dustrial nations  of  the  world,  owing  to  the  fact  that  employers 
in  all  lines  of  industry  we're  able  to  obtain  an  adequate  supply 
of  workmen  at  salaries  decidedly  lower  than  those  current  in 
other  industrial  countries.  According  to  the  latest  reports, 
however,  this  advantageous  state  of  affairs  is  not  destined  to 
continue  for  an  indefinite  period  in  this  country,  as  the  marked 
increase  in  the  cost  of  living  that  has  been  more  or  less  general 
throughout  the  world  has  been  especially  exemplified  in  the 
case  of  Belgium. 

GREECE. 
[From  Consul  General  Horton,  Athens.] 
Formerly  Athens  was  a  very  cheap  place  in  which  to  live, 
but  in  recent  years  the  price  of  articles  of  food  and  necessities 
have  advanced  until  they  are  as  high,  if  not  higher,  than  in  Amer- 
ica. The  cost  per  pound  in  United  States  currency  of  some  of 
the  principal  articles  are :  Butter,  $1.03  ;  beans,  five  cents ;  boiled 
ham,  $1.04 ;  raw  ham,  45  cents ;  beef,  sirloin,  17  cents,  and  fillet, 
38  cents ;  lamb,  32  cents ;  pork  chops,  18  cents ;  leaf  lard,  19 
cents ;  and  sugar,  10  cents.  Eggs  sell  for  33  cents  per  dozen ; 
salmon,  54  cents  per  pound  can;  fresh  milk  (cow's),  54  cents 
per  gallon ;  oatmeal,  50  cents  per  pound  package ;  petroleum, 
75  cents  a  gallon ;  and  coke,  $10  per  ton. 


HOLLAND. 

[FTom  Consul  Frank  W.  Mahin,  Amsterdam.] 
The  material  increase  in  the  price  of  foodstuffs  during  the 
past  six  morrths  in  the  Amsterdam  district  is  generally  attrib- 
uted to  the  remarkably  hot  and  dry  summer,  but  certain  ob- 
servers of  eoonomic  conditions  and  tendencies  argue  that  it  is 
in  the  main  a-nly  a  continuation  of  a  movement  which  has  ex- 


62  ADVANCE  IN  COST  OF  LIVING. 

isted  for  the  past  15  years.  It  is  pointed  out  that  the  lowest 
price  of  foodstuffs  in  this  country  in  recent  years  was  reached 
in  1896,  and  that  since  then  prices  have  steadily  mounted.  The 
following  comparative  table,  using-  the  year  1898  as  a  basis,  ap- 
peared in  a  recent  official  agricultural  report : 


Commodities. 

1898. 

1904. 

1910. 

Beef 

100 

115 

119 

Pork  

100 

104 

141 

Eggs  _. 

100 

108 

156 

Butter 

100 

113 

128 

Ham  

100 

127 

133 

Wheat 

100 

106 

118 

Potatoes  (for  flour) 

100 

118 

129 

Sugar  (beet) .; 

100 

108 

126 

It  appears  therefrom  that  prices  of  important  foodstuffs  in- 
creased 16  to  55  per  cent  in  12  years. 


V 


SPAIN. 

[From  Consul  Robert  Frazer,  Jr.,  Valencia.] 


As  an  outcome  of....,  much  popular  dissatisfaction  with  the 
high  cost  of  foodstuffs  in  Spain,  the  ministry  has  taken  the 
matter  up,  and  a  royal  decree*,  under  date  of  September  9,  has 
been  issued  in  response  to  the  ministry's  representations.  In 
comparison  with  American  standards,  a  few  factors  entering 
into  the  cost  of  living  are  cheap,  but  the  remainder,  where 
wages,  as  in  this  district,  range  from  36  cents  to  a  maximum 
in  the  skilled  trades  of  72  to  90  cents  per  day,  are  much  higher 
in  proportion  to  the  purchasing  power  of  the  people  than  in 
the  United  States.  Rent,  wine  (which  is  here  as  much  a  staple 
as  is  bread),  vegetables,  fruits,  and,  for  those  who  can  afford 
to  have  servants,  wages  are  not  expensive ;  but  the  following 
statement  of  foodstuffs  retailed  in  Valencia  at  the  prices  given 
per  kilo  of  2.2  pounds  will  show  that  complaints  about  high 
living  are  well  founded:  Beef  for  soup,  bonless,  36  cents;  with 
bone,  22  cents;  sirloin  steak,  54  cents;  tenderloin,  70  cents; 
veal,  72  cents;  pork,  fresh  and  salted,  36  to  45  cents;  mutton, 
36  to  40  cents;  pork  sausage,  43  cents;  blood  and  fat  sausage, 
25  cents;  whole  ham,  63  cents;  choice  cuts  of  boneless  ham, 
$1.06 ;  butter,  $1.06 ;  lard,  45  cents ;  sugar,  21  cents ;  coffee,  72  to 
90  cents;  tea,  56  cents  to  $1.20.  Flour  costs  90  cents  per  25 
pounds. 

[From  Consul  Norton,  Malaga,  Spain.] 

This  district  was  free  from  the  labor  troubles  which  disturbed 
business  conditions  in  many  parts  of  the  Kingdom  during  1910. 
Nevertheless,  the  problem  of  greatly  increased  cost  of  living 
is  as  acute  here  as  in  the  United  States.  As  far  as  wages  are 
concerned  the  mechanic  and  the  laborer  of  the  district  are  little 
better  off  than  10  years  ago,  and  the  purchasing  power  of  the 
masses  continues  to  be  small.  All  necessities  of  life  have  gone 
up  steadily  in  price  and  there  does  not  seem  to  be  any  im- 
mediate relief.  The  high  price  of  meat  has  occupied  the  atten- 
tion of  the  press  and  people  during  the  past  year. 

RUSSIA. 

[From  Consul-General  J.  H.  Snodgrass,  Moscow.] 
The    increased   cost   of   living   throughout   Russia    is    perhaps 
felt  more  keenly  in  Moscow  than  in  any  other  city  of  the  Em- 
pire.    Conditions  have  become  so  serious  that  many  plans  have 
been  mooted  for  the  relief  of  the  people. 


JAPAN. 

[From  Consul  George  N.  West,  Kobe.] 
According  to  an  article  in  Osaka  Asahi,  prices  have  gone  up 
in  Japan  over  twofold  in  the  last  20  years,  while  the  purchas- 
ing value   of   the   currency  has    sensibly   declined.     Taking  the 


ADVANCE  IN  COST  OP  LIVING.  63 

average  rate  of  prices  in  January,  1887,  at  100,  and  the  value 
of  the  currency  at  the  same  time  at  100,  the  rate  of  prices  in 
1910  would  be  228  and  the  value  of  currency  43,  according  to 
a  table  published  by  the  Bank  of  Japan. 

Another  table  published  by  the  same  bank  shows  that  the 
advance  in  the  prices  of  imported  goods  has  been  comparatively 
small,  while  the  rise  in  the  price  of  goods  produced  for  the 
home  market  and  for  export  has  been  greater.  Compared  with 
the  advance  in  prices  in  other  countries,  the  Japanese  rate  of 
advance  has  been  about  two  per  cent  greater  than  that  In 
London  and  New  York. 

CHINA. 

[From  Consul  J.  C.  McNally,  Nanking,  China.] 
It  is  a  matter  of  grave  concern  to  the  missionaries  and  other 
permanent  residents  of  this  part  of  China  to  observe  from  year 
to  year  the  increasing  cost  of  living,  which,  of  course,  includes 
every  item  of  household  expense.  From  conversations  with  re- 
liable business  men  and  missionaries  who  have  spent  a  great 
many  years  in  this  part  of  China,  it  is  learned  that  the  cost  of 
merchandise,  as  well  as  operating  expenses  of  business  or  house- 
hold, has  very  materially  increased  in  the  past  10  years.  The 
increased  cost  of  living  for  the  Chinese  compels  the  foreigner 
to  meet  the  advance  in  wages,  for  they  must  pay  twice  as  much 
rent  for  their  houses  and  150  per  cent  more  for  rice  than  they 
did  10  years  ago.  There  is  a  general  increase  in  rent,  servants' 
wages,  food,  clothing,  and  transportation  of  from  25  to  100  per 
cent  over  that  of  10  years  ago.  The  following  table,  furnished 
by  a  Shanghai  business  man  of  standing,  shows  the  increased 
cost  of  the  various  articles  of  daily  use : 


Articles. 


Per  cent 
advance. 


Stoves  and  scales 

Cooking  utensils  __ 

Fresh  and  canned  milk 

Coffee  and  tea 

Fresh  meat 

Eggs 

Chickens 

Sugar,  made  in  Hongkong- 
Sugar,  American  cube 

Butter  

Canned  vegetables 

Ham  and  bacon,  Anur.can. 
Flour,  American  


20  to  25 

25 

25 

20 

S3  to  40 

100 

150 

10 


ASIA    MINOR. 

[From  Consul  W.  W.  Masterson,  Harput,  Asia  Minor.] 
One  of  the  inexplicable  things  in  connection  with  this  country 
is  the  remarkable  increase  in  the  price  of  everything,  as  there 
is  not  one  article  that  goes  into  any  of  the  relations  of  life  that 
has  not  almost  doubled  in  price  during  the  past  five  years. 
While  even  now  these  prices  may  appear  low  to  those  living  in 
countries  where  the  cost  prices  are  greater,  to  these  people, 
with  the  small  circulation  per  capita,  and  their  small  bus- 
iness and  small  wages,  these  increases  are  as  hard  and  high  as 
they  would  be  to  those  living  in  other  countries  where  the  in- 
crease is  greater  but  where  the  per  capita  of  money  in  circula- 
tion is  also  greater.  If  this  country  were  on  the  seacoast,  where 
the  people  depended  to  a  great  extent  on  the  import  and  export 
trade,  it  would  be  in  keeping  there  with  the  balance  of  the 
world  to  notice  this  increase,  but  in  the  middle -of  Asia  Minor, 
so  far  inland  that  the  greater  proportion  of  the  things  consumed 
are  produced  locally,  the  increase  seems  inexplicable.  If  the 
country  were  filling  up  by  immigration  this  increase  would  be 
explainable,  but  there  is  a  steady  stream  of  Armenian  emigra- 
tion to  the  United  States,  with  some  few  Kurds  and  Turks  in 
addition,  and  the  population  is  gradually  diminishing;  still  the 
prices  continue  to  rise. 


64 


ADVANCE  IN  COST  OP  LIVING. 


List  of  some  of  the  more  important  articles  used,  with  prices, 
in  1905  and  1910: 


Articles. 

1905. 

1910. 

Wheat 

$1.60 

1.00 

2.40 

.16 

.10 

.22 

1.92 

.16 

.32 

7.20 

.16 

$4.32 

2.60 

3.60 

.20 

.14 

Barley 

Sheep   _ 

Sugar  

Rice,  home  grown 

do 

Soap   . 

do 

48 

Petroleum     

3  60 

Cotton,  raw 

28 

Cocoons    

do 

64 

Silk 

do 

8  64 

Wool 

-do... . 

.48 

The  rent  for  fields,  for  houses,  and  for  the  little  shops  in  the 
markets  have  kept  full  pace  with  the  increase  in  the  prices  of 
the  necessities  of  life  and  the  increase  in  wages. 

SYRIA. 

[Prom  Consul  Hollis,  Beirut,  Syria.] 
Outside  of  staple  articles,  such  as  coffee,  sugar,  petroleum,  and 
a  few  others  of  less  importance,  the  cost  of  living  has  increased 
20  to  50  per  cent  within  the  past  year.  The  prices  of  meats 
have  risen  over  30  per  cent,  and  butter  in  proportion ;  flour, 
20;  potatoes,  25;  vegetables,  50;  fruits,  50;  clothing,  20;  fuel, 
30,  and  rents  from  25  to  40  per  cent.  Household  servants  and 
similar  employees  demand  from  50  to  75  per  cent  more  than  for- 
merly, and  common  labor  has  increased  from  23  to  35  per  cent. 

CHILE. 

[Prom  Consul  Alfr«fl  A.  Winslow,  Valparaiso,  Chile.] 
The  cost  of  living  has  increased  greatly  in  Chile  during  the 
past  four  years,  which  has  made  it  very  hard  for  the  working 
people  of  the  country.  Kents  in  the  cities  of  Valparaiso  and 
Santiago  have  increased  so  much  that  the  working  people  must 
live  in  poor  shacks  in  order  to  make  ends  meet.  This  has  led 
to  the  discussion  in  Congress  of  the  question  of  the  Govern- 
ment building  workingmen's  homes  in  these  cities  that  can  be 
furnished  at  a  normal  rental. 

There  are  several  reasons  advanced  for  this  increase  in  living 
expenses,  such  as  the  earthquake  of  August  15,  1906,  which  raised 
rents ;  the  general  increase  of  prices  of  provisions  throughout 
the  world ;  and  the  fluctuation  of  the  paper  currency  of  the 
country.  For  quite  a  time  since  1906  the  value  of  a  peso  has 
been  as  low  as  15  cents  United  States  currency,  during  which 
time  prices  in  Chilean  paper  were  marked  up  to  meet  the  gold 
value,  but  these  prices  have  not  been  reduced,  which  means  an 
increase  of  about  50  per  cent  at  the  present  value  of  a  peso. 
It  seems  to  be  the  general  opinion  that  the  high  prices  of 
Chilean  farm  products,  as  well  as  higher  rents,  have  come  to 
stay.  Wages  have  advanced  fully  50  per  cent  since  1906.  The 
cost  of  living  in  the  interior  towns  is  much  cheaper,  but  even 
there  the  increase  is  40  per  cent  to  50  per  cent  for  the  four  years. 
The  increased  cost  of  living  in  Valparaiso  is  plainly  set  forth 
in  the  following  statement,  published  in  a  leading  local  news- 
paper, giving  the  monthly  household  expenses  of  a  family  in 
moderate  circumstances,  composed  of  three  adults  and  two  chil- 
dren, in  1906  and  1910.  The  prices  have  been  converted  into 
American  currency  on  the  basis  of  one  peso  equaling  27  cents  in 
1906  and  23  cents  in  1910. 


Item. 

1906. 

1910. 

Rent  

$20.25 
51.30 
4.05 
3.24 
6.75 
8.10 

$46.00 

Meat  and  vegetables 

83.95 

Bread  

10  35 

7.36 

13.80 

14.95 

Total 

93.69 

176.41 

ADVANCE  IN  COST  OF  LIVING.  65 

The  following-  statement  shows  the  wholesale  prices  of  food- 
stuffs in  Valparaiso  in  1906  and  1910,  in  American  currency : 


Articles. 

1906. 

1910. 

Beef 

._ 2.2  pounds-- 

$0.18 
2.43 

35.00 
2.43 

14.85 
6.02 

12.40 

24.06 

$0.24 

100  pounds-- 

3.68 

Butter 

do 

46.00 

Flour 

do 

2.99 

100  pounds 

25.30 

do  _ 

5.84 

Brazilian  coffee  

Olive  oil 

do.— 

case  of  40  bottles— 

13.87 
23.72 

It  will  be  noted  by  the  foregoing  table  that  the  principal 
increases  in  the  cost  of  foodstuffs  are  in  the  products  of  the 
country. 

MEXICO. 
[From  Consul-General  Canada,  Vera  Cruz,  Mexico.] 

The  cost  of  living  in  the  city  has  doubled  during  the  past 
10  years,  and  only  the  well-to-do  can  afford  to  buy  foreign 
food  products;'  Laborers'  wages  have  advanced  from  38  cents  in 
1893  to  62  cents  in  1911  for  10  hours'  work.  The  increases  in 
clerks'  salaries  have  not  kept  pace  with  the  advance  in  laborers' 
pay,  and  they  range  from  about  $25  to  $75  per  month.  Me- 
chanics earn  $1  to  $2  per  day. 

ARGENTINA. 

[From  Consul-General  R.  M.  Bartlemen,  Buenos  Aires.  1 
The  high  cost   of  the  first  necessities   of   life  was   no   doubt 
a   prime    factor   in   the   year's   labor    difficulties.      The    price    of 
second-quality  bread  advanced  70  per  cent  in  10  years. 

AUSTRALIA. 

[From  Vice  Consul-General  H.  D.  Baker,  Sydney.] 
During  the  past  10  years  the  increase  in  cost  of  living  in  New 
South  Wales  amounts  to  an  average  of  20  per  cent.  The  tariff 
has  had  nothing  to  do  with  the  increase  in  price  of  meat.  But 
of  all  advances  there  is  none  more  striking  than  the  advance 
in  coal.  It  costs  more  to  furnish  a  house  now  than  it  did  in 
1900. 

[From  Consul  Magelssen,  Melbourne,  Australia.] 
In  the  last  few  years  much  has  been  heard  of  the  increased 
cost   of  many  household   commodities,   and  the   question   is   one 
which  touches  the  interests  of  all. 

ADVANCE  IN  PRICES  IN  FOREIGN  COUNTRIES  AS  EVIDENCED 
BY    IMPORT    PRICES. 

One  of  the  most  accurate  methods  of  determining  the  advance 
or  decline  in  prices  abroad  is  through  the  valuation  of  foreign 
merchandise  imported,  as  reported  by  the  Collectors  of  Customs 
to  the  Bureau  of  Statistics,  Department  of  Commerce  and  Labor. 
The  law  under  which  the  collectors  report  the  value  of  the 
merchandise  imported  requires  that  the  stated  value  of  the 
article  imported  shall  be  "the  price  at  which  such  merchandise 
is  freely  offered  for  sale  be  the  actual  market  value  or  whole- 
sale price  thereof,  at  the  time  of  exportation  to  the  United 
States,  in  the  principal  markets  of  the  country  whence  ex- 
portd ;  that  such  actual  market  value  shall  be  held  to  be  the 
price  at  which  such  merchandise  is  freely  offered  for  sale  to 
all  purchasers  in  said  markets,  in  the  usual  wholesale  quanti- 
ties." The  stated  value  on  all  merchandise  imported  may 
therefore  be  accepted  as  probably  the  most  accurate  measure- 
ment of  the  average  wholesale  prices  of  these  articles  in  the 
world  markets,  for,  since  these  markets  are  in  constant  com- 
petition with  each  other,  the  prices  stated  by  the  importers  as 
the  wholesale  prices  in  the  country  from  which  imported  may 
be  accepted  as  a  fair  average  valuation  of  the  merchandise  in 
question   in   the   various  markets   of   the   world.     In   nearly   all 


66 


ADVANCE  IN  COST  OP  LIVING. 


cases  the  imports  of  any  given  article  when  totalized  by  the  Col- 
lectors of  Customs  and  the  Bureau  of  Statistics  represent  nu- 
merous markets.  The  aggregation  of  these  quantities  and 
values  and  the  average  prices  thus  produced  gives  a  broad  gen- 
eral view  of  world  prices  outside  the  United  States.  This  op- 
portunity of  measuring  the  relative  advance  in  prices  through 
a  comparison  of  average  wholesale  prices  in  markets  outside  the 
United  States  with  those  of  earlier  years  is  therefore  especially 
valuable  in  determining  whether  the  advance  in  prices  is  or  is 
not  local  to  the  United  States.  The  following  table  shows  the 
import  value,  and  thus  the  average  value  in  the  world  markets 
in  which  produced,  of  certain  leading  articles  imported  in  1897 
and  at  intervals  since  that  time.  Other  tables  of  a  similar  na- 
ture may  be  found  by  consulting  the  index . 

While  it  should  not  be  understood  from  this  statement  that  all 
articles  imported  from  foreign  countries  show  higher  prices  in 
1911  than  in  any  or  all  earlier  years,  yet  a  study  of  the  figures 
above  referred  to  will  show  clearly  that  the  advance  in  prices 
which  has  been  so  sharply  observed  in  the  United  States  is  also 
distinctly  marked  in  foreign  countries. 

Average  import  prices  in  the  month  of  March,  18$7  to  1912. 

[Represents  prices  in  foreign  countries.] 


Articles 


Chemicals,  drugs,  etc. : 

Bark,    cinchona,    etc —lb- 

Gums,    Camphor,    crude lb- 
Potash,  nitrate  of lb- 
Cotton,  raw 

Manufactures        of:        Cloth, 

not   bleached sq.    yd- 

Fibres,   vegetable,    etc.: 
Plax  ton- 
Hemp  ton. 

Is  tie  or  tampico  fiber ton- 
Jute  —.ton- 
Manila  ton- 
Sisal  grass  ton- 
Hides  and  skins,  other  than 
fur  skins: 

Goatskins lb- 
All  other,  except  hides  of 
cattle lb- 
Hides  of  cattle lb. 

India  rubber lb. 

Iron  and  steel  and  manufac- 
tures of: 

Pig  iron ton. 

Tin      plates,       terne      plates, 

etc lb. 

Silk,  raw lb. 

Sugar  (Cane),  Not  above  No._ 
16 lb- 
Above  No.  16 lb 

Tin      in     bars,      blocks,      pigs, 

etc.    lb 

Wood:     Boards,     planks,     etc. 

M  ft. 

Wool:  Class  1— clothing lb- 
Class    2— combing It) 

Class  3— carpet  lb. 

Manufactures  of:    Cloths lb- 
Zinc     or     spelter,      in     blocks, 
pigs  or  old lb 


March— 


1897    1900    1906    1910    1911    1912 


.048 
.289 

.0-20 
.112 


219.51 
126.00 
49.95 
29.82 
79.67 


.220 

JOS 
.117 
,501 


22.90 

.023 

2.87 

.020 
.024 

.128 

10.27 
.171 
.200 
•  111 
.667 

.033 


$0,193 
.294 
.027 
.136 

.094 

296.18 
133.65 
73.30 
33., 59 
135.84 
166.23 


.272 


.174 
.130 


36.21 


.035 
4.63 


.254 
12.01 


.212 
.097 


.053 


$0,085 
.360 
.033 
.151 

.123 

278.79 
176.80 
89.71 
64.25 

183.83 
148.70 


.300 

.182 
.146 
.766 


28.81 

.030 
3.25 

.0202 
.032 

.342 

17.23 
.213 
,t?8 

.133 
1. 


$0,081 
.306 
.029 
.186 

.083 

300.56 
167.21 
68.06 
44.39 
114.31 
107.40 


.284 


.153 
1.15 


23.40 


.0>9 
3.13 


.041 

.314 

18.77 
.255 
.268 
.137 
1.07 

.046 


$0,076 
.293 
.032 
.208 

.107 

335.15 
178.40 

77.58 
74.30 
125.60 
100.81 


-.202 
.133 


32.32 
.0U 


.022 
.034 


19*70 

.237 

.254 

.126 

1.17 


.051 


$0,072 
.295 
.036 
.178 

.105 

357.56 
235.27 
91.81 
57.51 
122.97 
110.71 


.234 

.181 
.152 
.838 


36.33 

.061 
3.19 

.032 
.0W 

.414 

17.81 

.211 

.944 

.121 

1.150 

.010 


SOME   FIGURES   WHICH    SHOW    I1V    PART   WHY   THE    COST    OP 
LIVING    IS    RISING. 

[Based  upon  data  published  in  the  Statistical  Abstract  of  the  United  States,  1911.] 
The  amounts  of  the  attached  table  are  taken  from  the  Statis- 
tical Abstract  of  the  United  States  for  1911,  and  it  is  to  be  noted 
that  they  compare  the  year  1911  with  the  year  1891,  twenty-one 
years  prior  to  the  present  time.  Comparisons  of  different  years 
will  of  course  produce  different  results,  but  the  accompanying 
deduction   explains    conditions   as   to   the   present   time,    and    a 


ADVANCE  IN  COST  OF  LIVING.  67 

further  investigation  would  show  that  it  reflects  a  trend  show- 
ing- reasons  for  the  increasing-  cost  of  living. 

A  method  of  percentage  of  increase  rather  than  the  figures 
showing  actual  increases  is  the  best  way  of  arriving  at  some 
conclusions  regarding  why  things  are  as  they  are.  If  we  can 
show  that  the  percentage  increase  in  the  necessaries  of  life  has 
not  kept  pace  with  the  percentage  increase  of  population,  the 
familiar  law  of  supply  and  demand  will  give  the  conclusion 
that  not  so  much  is  being  produced  per  capita  as  in  former 
years,  and  hence  prices  must  necessarily  be  higher. 

One  point  should  be  borne  in  mind  especially,  and  that  is  the 
percentage  increase  of  population  of  46.9  per  cent.  With  this 
percentage  increase  of  49.6  per  cent  all  the  other  percentage 
increases  should  be  compared,  and  if  they  are  found  to  be  lower 
than  the  population  increase,  it  must  necessarily  show  that  by 
reason  of  a  lessened  supply  prices  are  higher.  That  this  is  so 
will  be  shown  by  the  following  table : 

Percentage    Increase 
1911  over  1891 

Population    46.9 

Cattle     14.4 

Sheep     23.5 

Swine 29.6 

Wool     11.8 

Wheat    1.6 

Corn 22.9 

The  above  table  shows  that  the  population  increase  has  been 
in  all  cases  higher  than  the  increase  in  the  production  of  the 
necessaries  of  life. 


SOME  FIGURES  WHICH  SHOW  IN  PART  WHY  THE  COST  OF  LIVING  IS 
RISING.  TAKEN  FROM  THE  STATISTICAL  ABSTRACT  OF  THE  UNITED 
STATES   FOR   1911. 


Number  on  January  1,  of  years  named,  of — 


Population. 

Cattle. 

Sheep. 

Swine. 

1891 

1911 

63,844,000 
93,792,509 

52,895,239 
60,502,000 

43,421,136 
53,633,000 

50,625,106 
65,620,000 

29,948,509 
46.9 

7,006,761 
14.4 

10,211,864 
23.5 

14,994,894 

29.6 

Production  of  Staples 

Named  in  1891  and  1911. 

Wool  (lbs.) 

Wheat(bush.) 

Corn  (bush.) 

Money  in 
circulation. 

1891    

285,000,000 
318,547,900 

611,780,000 
621,338,000 

2,060,154,000 
2,531,488,000 

1,497,440,307 

i8li     

3,214,002,596 

33,547,900 
11.8 

9,558,000 
1.6 

471,334,000 

22.9 

1,716,562,289 

114.6 

World's    gold 
produc- 
tion,  oz. 

Average    num- 
ber wage 

earners,    Mfg. 
in  U.   S. 

Persons  engaged  in  agri- 
culture in  U.  S. 

1890 

5,749,306 
21,996,297 

4,251,613 
*6;615,046 

S,565,9"76 

1910... 

12,070,672  (estimated) 

Increase 

16,246,991 
2^2.6 

55.6 

3,504,740 

Per  cent 

40.9 

'Exclusive  of  neighborhood  industries   and  hand  trades,   included  wltii  figures 
tor  1890. 


68  ADVANCE  IN  COST  OF  LIVING. 

J.  Stuart  Mill  shows  that  an  increase  in  the  circulation  of 
money  lowers  its  value  and  purchasing  power,  when  the  increase 
of  money  is  greater  than  that  of  population.  Figures  above 
show  that  the  increase  of  money  in  circulation  has  been  over 
twice   as  great  as  that  of  population. 

It  is  interesting  to  note,  especially  with  regard  to  wheat,  the 
production  of  food  commodities  has  not  kept  pace  with  the 
increase  of  population.     This  is  very  significant. 

INCREASING  PRODUCTION  OP  GOLD. 

Economists  have  assigned  the  increasing  production  of  gold 
as  a  factor  in  the  increasing  cost  of  living.  Gold  is  a  denomi- 
nator of  value  and  must  be  obtained  in  exchange  for  labor  spent 
in  obtaining  it.  If,  therefore,  improved  methods  of  mining  give 
rise  to  an  increasing  supply  of  gold  at  a  lessened  cost  per  unit 
of  weight,  it  must  necessarily  follow  that  gold  increasing  much 
more  rapidly  than  other  commodities,  it  will  take  more  and 
more  gold  to  buy  the  same  units  of  the  necessaries  "of  life.  Our 
figures  show  that  while  the  population  has  increased  49.6  per 
cent,  the  world's  production  of  gold  has  increased  282:6  per  cent 
— an  increase  six  times  as  great  as  that  of  population. 

GOLD  PRODUCTION  OF  THE   WORLD,  1492-1912. 

The  following  table  shows  in  condensed  form  the  gold  produc- 
tion of  the  world  from  the  discovery  of  America  to  the  present 
time,  1492  to  January  1,  1912.  It  will  be  seen  that  the  annual 
average  production  at  the  present  time  is  twice  as  much  as  the 
annual  average  during  the  decade  ending  with  1900,  four  times 
the  annual  average  during  the  forty  years  ending  with  1890,  and 
fifty  times  as  much  as  the  annual  average  from  1492  to  1850, 
the  date  of  the  great  gold  discoveries  in  California  and  Aus- 
tralia. 

Annual  average  gold  production  of  the  world,  1492  to  1912. 

Pftrir.fi  Annual 

renod-  Average,  Dollars. 

1493-1850    8,500,000  ' 

1850-1890  120,200,000 

1890-1900  : 210,100,000 

1900-1905  322,620,000 

1905-1910  433,359,000 

1911  (estimated)  463,249,000 

MANUFACTURING     POPULATION     VS.     AGRICULTURAL     POPU- 
LATION. 

The  tendency  of  the  times  is  for  people  to  aggregate  in  large 
cities  and  to  devote  themselves  to  manufacturing,  commercial 
and  distributing  occupations  rather  than  to  agricultural  em- 
ployments. The  natural  result  of  this  will  be  to  have  propor- 
tionately fewer  people  raising  the  necessaries  of  life  for  a  pro- 
portionately greater  number  of  people.  That  this  is  so  will  be 
seen  by  the  statistics  on  another  page,  in  wrhich,  between 
1890  and  1910,  the  average  number  of  wage  earners  in  manu- 
facturing pursuits  in  the  United  States  increased  55.6  per  cent, 
while  those  engaged  in  agriculture  increased  40.9  per  cent.  It 
will  be  noted  that  the  percentage  increase  of  the  manufacturing 
population  was  in  excess  of  the  percent  ge  increase  in  popula- 
tion itself;  while  the  percentage  increase  in  agricultural  popu- 
lation was  less  than  the  increase  in  total  population. 

RELATIVE    ADVANCE    IN    PRICES    IN    PRINCIPAL    COUNTRIES. 

The  rise  in  the  prices  of  commodities,  which  has  been  almost 
steady  since  1897,  with  slight  depressions  in  1901,  1904.  1908  and 
1911,  is  being  used  by  many  as  an  argument  against  the  Repub- 
lican administration's  policy  concerning  the  tariff.  It  is  claimed 
that  the  rise  in  prices  is  directly  due  to  the  tariff  legislation.     If 


ADVANCE  IN  COST  OF  LIVING. 


09 


this  were  true,  or  if  the  tariff  legislation  during  the  past  sixteen 
years  had  had  any  appreciable  effect  upon  the  general  upward 
trend  of  prices,  this  upward  trend  would  necessarily  be  confined 
to  the  United  States  and  to  such  other  countries  as  have  pursued 
a  similar  tariff  policy  during  that  period.  This,  however,  is  not 
borne  out  by  the  established  facts. 

For  many  years  statisticians  in  the  employ  of  the  various 
governments  and  private  economic  organizations  have  been  con- 
structing index  numbers  based  upon  the  aggregate  prices  of 
leading  commodities.  The  following  quotation  from  the  Century 
Dictionary  explains  the  method  and  use  of  these  index  numbers : 

"In  tracing  the  movement  of  the  prices  of  a  number  of  commodities 
taken  collectively,  or  of  the  wages  of  employees,  the  method  of  index 
numbers  is  generally  used.  These  index  numbers,  for  commodities,  are 
computed  as  follows:  A  certain  number  of  commodities  (for  which  the 
course  of  prices  is  to  be  ascertained)  is  chosen,  and  the  aggregate  price  of 
specified  quantities  of  these  articles,  at  a  certain  fixed  time,  or  the  aver- 
age of  the  aggregate  prices  for  a  fixed  period,  it  taken  as  a  base  and  is  de- 
signed as  100.  The  aggregate  prices  of  the  same  or  similar  commodities  at 
other  times  are  then  calculated  as  percentages  of  the  one  aggregate  which 
constitutes  the  base.  This  base  varies  in  the  different  series  of  index 
numbers  which  have  been  presented  by  statisticians.  In  the  United  States 
Senate  Finance  Committee's  report  the  prices  and  the  wages  for  the 
year  1860  are  each  taken  as  the  base,  and  the  prices  and  wages  in  each 
of  the  other  years  are  percentages  of  this,  the  aggregate  prices  and 
wages  being  higher  or  lower  than  in  1860  as  the  figures  are  above 
or  below  100  respectively.  In  Sauerbeck's  index  numbers  of  prices  in 
England,  the  average  of  the  aggregate  prices  for  the  eleven  years  1867- 
1877  is  taken  as  the  base,  i.  e.,  100.  In  the  United  States  Bureau  of  Labor 
index  numbers  of  prices  and  wages  the  average  of  the  aggregates  for 
the   period    1890-1899   is   taken    as    the   base." 

All  the  index  numbers  used  in  this  Text  Book  have  been  re- 
duced to  the  last  mentioned  base. 

In  the  table  and  chart  which  follow,  the  index  numbers  of 
wholesale  prices  in  the  United  States,  Canada,  United  Kingdom, 
France  and  Germany  are  shown  side  by  side.  It  will  be  observed 
that  the  general  trend  of  prices  in  all  these  countries  has  been 
the  same,  and  the  similarity  in  the  fluctuations  is  striking: 


Relative  Wholesale  Prices  in  Five  Leading  Countries. 

[Sources:  United  States,  Bulletin  of  the  United  States  Bureau  of  Labor  No. 
99;  Canada,  Wholesale  Prices  in  Canada,  1910,  p.  7;  United  Kingdom,  France, 
Germany,  Journal  of  the  Royal  Statistical  Society,  Vol.  LXXV,  Part  I,  p.  29.] 


Year. 

United 
States. 

Canada. 

United 
Kingdom. 

France. 

Germany. 

1890 

1891 

1892 

113 

112 

106 

106 

96 

94 

90 

90 

93 

102 

111 

109 

113 

114 

113 

116 

123 

130 

123 

127 

132 

129 

110 

109 

103 

103 

97 

96 

93 

92 

96 

100 

108 

107 

109 

111 

111 

114 

120 

126 

121 

121 

125 

109 
109 
103 
103 
95 
94 
92 
94 
97 
103 
114 
106 
105 
105 
106 
109 
117 
121 
.  Ill 
112 
118 
121 

109 

109 

103 

107 

98 

92 

90 

91 

96 

105 

112 

105 

106 

105 

104 

106 

115 

122 

111 

112 

118 

110 
111 
104 

1893  -  

102 

1894 

94 

1895 

92 

1896         

91 

1897 

94 

1898 

99 

1899     

104 

1900 

111 

1901..   

107 

1902 

103 

1903 

109 

1904 

1P05 

111 
114 

1906 

123 

1907  -    

133 

1908 

120 

1909 

124 

1910 

128 

1911 

*  , 

The  "Wilson  bill  was  enacted  Into  law.  The  proof  of  the 
pudding  is  In  the  eating.  There  were  three  million  men 
working  in  the  productive  industries  and  on  their  pro- 
duets  that  were  thrown  out  of  employment.  The"y,  learn- 
ing thron^'h  their  stomachs  as  to  the  effects  of  it,  helped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  and  mountains  will  fall  "upon  you  apiin.  I  hope, 
in    1912,   and    I    know    in    1914   and    1910.— Ex-Speaker    Cannon. 


70 


ADVANCE  IN  COST  OP  LIVING. 


Course  of  Wholesale  Prices  in  Five  Leading  Countries 


ma 

1811 

\m 

189) 

ISM 

S91 

m 

IMZ 

MS 

MM 

MM 

1901 

1902 

IW3 

I9M 

1*03 

m 

m 

IKS 

MM 

in* 

MM 

184 

United  States 

182 
130 

128 

126 

124 

122 

120 

11)4 

US 

112 

110 

108 

10(1 

104 

102 

loo 

08 

/        96 
1         04 

1)2 

DO 

182 

lao 

128 

Canada 

s 

s~ 

0+ 

126 
124 
122 

120 

118 

lie 

114 

112 

no 

108 

loe 

104 

itfa 

100 

,        08 

>       06 
/        04 

'         02 

oo 

126 

124 
122 

United  Kingdom 

120 

118 

,    no 

:  !§ 

no 

108 

100 

104 

102 

100 

OS 

oe 

04 

02 

00 

,         126 
124 

France 

122 

120 

'      118 

t     116 

*14 

112 

!    no 

108 

100 

104 

102 

IOO 

08 

oe 

04 

02 

oo 

126 
124 
122 

Germany 

120 

118 

116 

114 

112 

no 

108 

106 

104 

102 

IOO 

OS 

06 

04 

02 

OO 

The  Republican  Party  was  born  because  of  a  principle,  and  It 
has  lived  and  grown  because  of  principles  too  sound  to  be  over- 
thrown, too  deep  to  he  effaced. — Hon.  James   S.  Sherman. 

The  price  of  wheat  is  fixed  by  the  law  of  supply  and  demand, 
which  is  eternal i  sold  has  not  made  Ions  crops  or  short  crops, 
hiK'h  prices  or  low  prices. — Maj.  Melviuley  to  Homestead  working- 
iugmen,    September    12,    1896. 


The  hum  of  Industry  has  drowned  the  voice  of  calamity,  and 
the  voice  of  despair  is  no  longer  heard  in  the  United  States,  and 
the  orators  without  occupation  here  are  now  looking  to  the 
Philippines  for  comfort.  As  we  opposed  them  when  they  were 
■tending  against  indiiNl  rial  progress  at  home,  we  oppose  them 
now  as  they  are  standing  against  national  duty  in  our  island 
possession   in   the  Pacific. — President   McKinley. 


ADVANCE  IN  COST  OF  LIVING. 


71 


A  further  proof  that  tariff  legislation  is  not  responsible  for 
the  present  high  prices  is  the  fact  that  the  rise  in  prices  has 
been  greater  in  raw  products,  nearly  all  of  which  are  free  of 
duty,  than  in  the  products  of  the  manufacturing  industries, 
nearly  all  of  which  are  dutiable.  This  is  shown  in  the  following 
table  and  chart : 


Relative  prices  of  raw  and  manufactured  commodities,  by  years, 
1890  to  1911,  and  by  months,  January  to  December,  1911,  and 
per  cent  of  increase  in  prices  for  1911  over  each  preceding  year, 
and  for  December,  1911,  over  each  preceding  month  or  year. 


[Source:     Bulletin  No.  99, 

U.  S.  Bureau  of  Labor. 

) 

Raw 

commodities. 

Manufactured 
commodities. 

All  commodities. 

Per  cent  of 

Per  cent  of 

Per  cent  of 

Rela- 

increase— 

Rela- 

increase— 

Rela- 

increase— 

Year  or 
month. 

£1 

4>   S3 

a  ft - 

Si 

=->    . 
S3  ^ 

«  S3 

<y>  ft  ~ 

Jo 

w  . 

«   M 
«  S3 

tive 

J*3  2 

tive 

.    <" 

-X3  a 

tive 

g£ 

-xj  a 

price. 

>  bo 
o  a 

&  o  O 

price. 

>  50 

o  a 
-1 

X2  o3  g 

price. 

>  bo 
°.S 

.Q  s3  g 

3     *> 

Doc 
ver 

'din 
ear 

*  « 

aoS» 

§S 

• 

fla 

0o«* 

aa 

n° 

aoa>, 

1—1 

' 

1890 - 

115.0 

21.7 

26.8 

112.3 

12.7 

11.4 

112.9 

14.5 

14.4 

1891 

116.3 

20.3 

25.4 

110.6 

14.5 

13.1 

111.7 

15.8 

15.7 

1892 

107.9 

29.7 

35.1 

105.6 

19.9 

18.5 

1(36.1 

21.9 

21.8 

1893 

104.4 

34.0 

39.7 

105.9 

19.5 

18.1 

105.6 

22.4 

22.3 

1894 

93.2 

50.1 

56.4 

96.8 

30.8 

29.2 

96.1 

34.5 

84.4 

1895 

91.7 

52.6 

59.0 

94.0 

34.7 

33.1 

93.6 

88.1 

38.0 

1896 

84.0 

66.5 

73.6 

91.9 

37.8 

36.1 

90.4 

43.0 

42.9 

1897 

87.6 

59.7 

66.4 

90.1 

40.5 

38.8 

89.7 

44.1 

44.0 

1898 

94.0 

48.8 

55.1 

93.3 

35.7 

34.1 

93.4 

38.4 

38.8 

1899 

105.9 

32.1 

37.7 

100.7 

25.7 

24.2 

101.7 

27.1 

27.0 

1900 

111.9 

25.0 

30.3 

110.2 

14.9 

13.5 

110.5 

17.0 

16.9 

1901 

111.4 

25.6 

30.9 

107.8 

17.4 

16.0 

108.5 

19.2 

19.1 

1902 

122.4 

14.3 

19.1 

110.6 

14.5 

13.1 

112.9 

14.5 

14.4 

1903 

122.7 

14.0 

18.8 

111.5 

13.5 

12.2 

113.6 

13.8 

13.7 

1904 

119.7 

16.9 

21.8 

111.3 

13.7 

12.4 

113.0 

14.4 

14.3 

1905 

121.2 

15.4 

20.3 

114.6 

10.5 

9.2 

115.9 

11.6 

11.5 

1906 

126.5 

10.6 

15.3 

121.6 

4.1 

2.9 

122.5 

5.6 

5.5 

1907 

133.4 

4.9 

9.3 

128.6 

1.6 

2.7 

129.5 

.2 

.2 

1908 

125.5 

11.5 

16.2 

122.2 

3.6 

2.4 

122.8 

5.3 

5.2 

1909 

136.8 

2.3 

6.6 

123.9 

2.2 

1.0 

126.5 

2.2 

2.1 

1910 

139.7 

.1 

4.4 

129.6 

2.3 

3.5 

131.6 

1.7 

1.8 

1911 

139.9 

4.2 

126.6 

1.2 

129.3 

.8 

«.  I'rlot- «    o(.  all 


I 


The  above  table  and  chart  show  the  prices  of  all  raw  commo- 
dities and  all  manufactured  products,  lumped  together  in  the  two 
respective  groups.  It  is,  however,  interesting  in  this  connection 
to  also  study  the  course  of  prices  of  the  commodities  which  make 
up  these  groups. 


72 


ADVANCE  IN  COST  OF  LIVING. 


Cotton. 

Raw  cotton  is  on  the  free  list,  and  the  United  States  supplies 
the  greater  part  of  the  world  with  this  commodity.  Cotton 
manufacture*  are  protected  by  the  tariff.  The  following  chart 
shows  the  course  of  prices  of  raw  cotton  and  a  few  represen- 
tative articles  of  cotton  manufacture.  It  will  be  observed  that 
while  the  price  of  raw  cotton  was  much  higher  in  1911  than  in 
1890,  the  prices  of  calico  and  cotton  hosiery  have  fallen  mate- 
rially : 


Actual  and  relative  wholesale  prices  of  raw  cotton,  calico  and 
cotton  hosiery. 


[Compiled  f 

rom  Bulletin  No.  99 

,  U.  fe 

.  Bureau  of  Labor.] 

Calico: 

Hosiery: 
men's  cot- 
ton half 

Hosiery: 

Hosiery: 
somen's  cot- 
ton hose, 

Hos- 

Cotton: 

American 

nose, 

less, 

black, 

senm- 

fast 
20  to 

women's  cot- 

seamless, 

upland, 

standard 

ton  hose, 

fast   black, 

iery: 

middling. 

print? 

combed 

26-ounce, 
176  needles, 
single  thread 
carded  yarn. 

aver- 

64 by 

64. 

22  ounce, iw 
needles  single 

threaded, 
carded  yarn. 

peeler  yarn. 

age. 

8  . 

ftd 
[3 

1 

a 

8 

i 

■g  » 

'5 

V 

t-. 
ft 

■S  . 

03 

i 

ft 

a.fc 
as 

i 

• 
0. 

<x>  O 

<D 

<v 

w  ft 

<D 

a>  ft 

a> 

v  ft 

• 

■ 

tfl  ft 

> 

bfl^ 

> 

bfltN 

5 

tC  rM 

> 

60 -M 

> 

> 

03  n 

+2 

03 

1. 

> 

"5 
M 

03  rH 

I* 

2 

SSrH 

&  S3 

5s 

"3 

03  rH 

"■3 
J 

« 

S3 
3 

1890 

.11089 

142.9 

.0650 

117.5 

1.2740 

133.3 

1.2250   131.6 

129.7 

1891—. 

.08600 

110.8 

.0575 

104.0 

1.1760 

123.1 

1.1270   121.1 

122.8 

1892 

.07686 

99.0 

.0650 

117.5 

1.0780 

112.8 

1.0780    115.8 

117.4 

1893 

.08319 

107.2 

.0625 

113.0 

1.0535 

110.3 

"T966  "I02T7 

1.0535    113.2 

109.4 

1894 

.07002 

90.2 

.0550 

99.5 

.9800 

102.6 

1.900    102.7 

.9800    105.3 

100.8 

1895 

.07298 

94.0 

.0525 

94.9 

.9065 

94.9 

1.875 

101.4 

.8575      92.1 

94.4 

1896 

.07918 

102.0* 

.0525 

94.9 

.8330 

87.2 

1.875 

101.4 

.7840      84.2 

90.5 

1897 

.07153 

92.2 

.0500 

90.4 

.7840 

82.1 

1.850 

100.0 

.7595      81.6 

86.7 

1898 

.05972 

76.9 

.0450 

81.4 

.7850 

76.9 

1.800 

97.3 

.7105 

76.3 

83.4 

1899 

.06578 

84.7 

.0483 

87.3 

.7350 

76.9 

1.750 

94.6 

.7350 

78.9 

82.5 

1900 

.09609 

123.8 

.0525 

94.9 

.7840 

82.1 

1.900 

102.7 

.7595 

81.6 

87.3 

1901 

.08627 

111.1 

.0500 

90.4 

.6860 

71.8 

2.000 

108.1 

.6615 

71.1 

85.9 

1902 

.08932 

115.1 

.0500 

90.4 

.7350 

76.9 

1.850 

100.0 

.7350 

78.9 

85.2 

1903 

.11235 

144.7 

.0504 

91.1 

..7840 

82.1 

1.875 

101.4 

.8085 

86.8 

90.1 

1904 

.12100 

155.9 

.0529 

95.7 

.6370 

82.1 

1.800 

97.3 

.7595 

81.6 

89.2 

1905 

.09553 

123.1 

.0517 

93.5 

.6370 

82.1 

1.750 

94.6 

.7840 

84.2 

87.5 

1906 

.11025 

]42.0 

.0550 

99.5 

.6615 

85.3 

1.900 
2.025 

lOt. 7 

.7595 

81.6 

89.7 

1907 

.11879 

153.0 

.0602 

121.0 

.7350 

94.8 

109.5 

.8830      89.5 

97.4 

1908 

.10463 

134.8 

.0519 

104.3 

.7500 

88.9 

1.775 

95.9 

.8OOO:     84.2 

89.5 

1909 

.12107 

156.0 

.0483 

97.1 

.8104 

96.1 

1.775 

95.9 

.8104|     85.3 

92.3 

1910 

.15118 

194.8 

.0531 

106.8 

.8042 

95.4 

1.831 

99.0 

.8125      85.5 

93.1 

1911 

.13037 

168.0 

.0499 

100.4 

.8000 

94.9 

1.844 

99.7 

.8250     86.8 

93.6 

Principles  are  more  enduring  than  men,  more  lasting  than  fac- 
tions.— Hon.  Jamew  S.  Sherman. 

Liberty  and  honor  do  not  measure  all  that  the  party  has  stood 
for  and  stands  for  to-day.  There  is  another  us  vent'  underlying; 
policy  which  the  Republican  Party  adopted  at  Its  hirth  and  has 
developed  since  as  has  none  of  the  ktciiI  powers  of  Christendom. 
I  refer  to  the  policy  of  progress,  which  has  made  our  country 
the  greatest,  our  nation  the  strongest,  and  our  people  the  wealth- 
iest and  happiest  of  all  the  peoples  of  the  world. — Hon.  James 
S.   Sherman. 

Instead  of  making  a  panic,  the  national  policy  of  ending?  the 
lawlessness  of  corporations  in  interstate  commerce,  and  of  taking; 
away  their  power  of  issuing,  without  supervision,  stork*  tind 
bonds,  will  produce  a  change  in  their  management  and  remove 
one  fruitful  cause  for  loss  of  public  confidence. — Hon.  Win.  H. 
Taft,  to   Merchants    and   Manufacturers'    Assoeiatioa,    Hostou,    Mass. 


We  must  regard  and  have  an  interest  in  what  our  neighbors 
are  doing,  null  when  we  eiui  assist  them,  we  cannot  pass  by  on 
the  other  side  as  the  I^evlte  did,  but  we  must  take  them  up  as 
the  Good  Samaritan  did  and  bind  up  their  wounds  and  prepare 
to  send  them  on  their  way  rejoiciug. — Hon.  Wm.  H.  Taft,  at  Cleve- 
land, Ohio. 


ADVANCE  IN  COST  OP  LIVING. 


?:: 


1890  1891  1892 


1895  1896  1897  1898  1899  1900  1901  1902  1903  1904  1905  1906  1907  1908  1909  1910  1911 


Haw   cotton,   Op- 

laad     Middling 

<fre«). 


Callcg   (dutiable) 


Wool. 

Wool,  both  in  the  raw  and  manufactured  state,  is  dutiable. 
The  table  and  chart  which  follow  show  that  the  fluctuations  in 
the  prices  of  raw  wool  and  of  the  two  staple  commodities  of 
wool  manufacture,  flannels  and  underwear,  have  been  very  simi- 
lar, that  raw  wool  and  flannel  were  cheaper  in  1911  than  in  1890, 
and  wool  underwear  was  but  slightly  higher : 


Actual  and  relative  wholesale  prices  of  raw  wool,  flannels  and 
all-wool  underwear. 


[Compiled  from  Bulletin  99 

,  U.  S.  Bureau  of  Labor.] 

Wool:  Ohio, 

medium  fleece 

VA.  and  % 

grade;, 

Bcoured. 

Wool:  Ohio, 

fine  fleece  (X 

and  XX 

grade), 

scoured. 

Wool 

Average 

Flannels: 

white,  4-4, 

Ballard  Vale 

No.  3. 

Underwear: 

shirts  and 

drawers,  white, 

all-wool. 

Average 
price  pei 
pound. 

Rela- 
tive 
price. 

Average 
price  per 
pound. 

Rela- 
tive 
price. 

Average 

price  per 

yard. 

Rela- 
tive 
price. 

Average 

price,  12 

gar- 

Rela- 
tive 
price. 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1896 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 

1908 

1900 

1910 

1911 

$0.6143 
.5820 
.5276 
.4620 
.3542 
.3280 
.3186 
.3999 
.4805 
.4966 
.5-96 
.4315 
.4436 
.4658 
.4869 
.5348 
-.5125 
.5158 
.4899 
.5429 
.4884 
.4490 

134.6 

127.5 

115.6 

101.2 

77.6 

71.9 

6SL.8 

87.6 

105.3 

108.8 

116.0 

94.5 

97.2 

102.1 

106.7 

117.2 

112.3 

113.0 

107.3 

119.0 

107.0 

98.4 

$0.7156 
.6857 
.6119 
.5639 
.4448 
.3768 
.3940 
.4955 
.6150 
.6232 
.6594 
.5453 
.5770 
.6546 
.6862 
.7591 
.7181 
.7181 
.7168 
.7376 
.6862 
.6472 

129.5 
124.1 
110.7 
102.0 
80.5 
68.2 
71.3 
89.7 
111.3 
112.8 
119.3 
98.7 
104.4 
118.5 
124.2 
137.4 
129.9 
129.9 
129.6 
133.5 
124.2 
117.1 

132.1 
125.8 
113.2 
101.6 
79.1 
70*1 
70.6 
88.7 
108.3 
110.8 
117.7 
96.6 
100.8 
110.3 
115.5 
127.3 
121.1 
121.5 
118.3 
126.5 
115.8 
107.8 

$0.4400 
.4400 
.4367 
.4125 
.3546 
.3080 
.3217 
.3113 
.3685 
.3750 
.4096 
.3800 
.3986 
.4806 
.4433 
.4461 
.4613 
.4638 
.4611 
.4594 
.4655 
.4300 

116.8 
116.8 
115.9 
109.5 
94.1 
81.7 
85.4 
82.6 
97.8 
99.6 
108.7 
100.8 
105.8 
114.3 
117.6 
118.4 
122.4 
123.1 
122.4 
121.9 
123.5 
114.1 

$24.73 
25.65 
25.65 
25.65 
21.60 
21.60 
21.60 
21.60 
21.60 
23.40 
28.40 
23.40 
23.40 
23.40 
23.40 
23.40 
27.00 
27.00 
27.00 
27.00 
27.00 
27.00 

106.2 

110.0 

110.0 

110.0 

92.7 

92.7 

92.7 

92.7 

92.7 

100.4 

100.4 

100.4 

100.4 

100.4 

100.4 

100.4 

115.8 

115.8 

115.8 

115.8 

115.8 

115.8 

74  ADVANCE  IN  COST  OP  LIVTNG. 

1890    INI    1151    ItM    l<M    ISM    UN    1*7    ISM    I3»    IV*    I  Ml    1*02    IMJ    l»5<    I9M    I'M    19* 


Iron  and   Steel. 

All  iron  and  stel,  as  well  as  the  products  thereof,  are  dutiable. 
The  table  and  chart  which  follow  show  that  the  prices  of  pig 
Iron  as  well  as  leading  commodities  manufactured  therefrom 
were  much  lower  in  1911  than  they  were  in  1890,  and  that  steel 
rails  and  cutlery  showed  a  greater  decline  comparing  1911  with 
1890  than  the  pig  iron  from  which  they  were  made: 

Actual  and  relative  ivholesale  prices  of  Bessemer  pig  iron,  steel 
rails  and  table  cutlery. 

[Compiled  from  Bulletin  99,  U.  S.  Bureau  of  Labor.] 


Year. 


1890 
1891 
1892. 
1893. 
1894 
1896. 
1866 
1897. 
1898. 
L899. 
1900. 
1901. 
1902. 
1903. 
ISM. 
1905. 
1906 
1907. 
1908 
1909 
1910. 
15)11. 


Pig  iron 

:   Bes- 

Steel  rails. 

Table  cutlery: 
knives  and  forks, 

cocobolo 

handles. 

Average 
price  per 

Eela- 

tive 

Average 

price  per 

Rela- 
tive 

Average 
price  per 

Relative 

ton. 

price. 

ton. 

price. 

gross. 

price. 

$18.8725 

137.0 

"$31.7792 

121.9 

$7.7500 

127.9 

15.9500 

115.8 

29.9167 

114.8 

7.7500 

127.9 

14.3667 

104.3 

30.0000 

115.1 

6.8500 

113.0 

12.8692 

93.4 

28.1250 

107.9 

5.5000 

90.8 

11.3775 

82.6 

24.0000 

92.1 

5.5000 

90.8 

12.7167 

92.3 

24.3333 

93.4 

5.5000 

90.8 

12.1400 

88.1 

28.0000 

107.4 

5.5000 

90.8 

10.1258 

73.5 

18.7500 

71.9 

5.0000 

82.5 

10.3317 

75.0 

17.6250 

67.6 

5.5000 

90.8 

19.0833 

138.1 

28.1250 

107.9 

5.7500 

94.9 

19.4925 

141.5 

S2.2S75 

123.9 

5.7500 

94.9 

J5.9S50 

115.7 

27.3333 

104.9 

6.5000 

107.3 

20.6742 

150.0 

28.0000 

107.4 

6.5000 

10?.  3 

18 .9758 

137.7 

28.0000 

107.4 

6.5000 

107.3 

13.7668 

99.8 

28.0000 

107.4 

6.6667 

110.0 

16.3592 

118.7 

28.0000 

107.4 

6.6875 

110.4 

19.5442 

141.8 

28.0000 

107.4 

6.0500 

99.8 

22.8417 

165.8 

28.0000 

107.4 

6.4833 

107.0 

17.0700 

123.9 

28.0000 

107.4 

5.4107 

89.4 

17.  1088 

126.3 

28.0000 

107.4 

5.0000 

82.5 

17.1925 

124.8 

28.0000 

107.4 

5.0000 

82.5 

15.7133 

114.0 

28.0000 

107.4 

5.0000 

82.5 

In  the  first  place,  It  is  said  that  the  policy  of  the  administration 
has  been  directed  for  the  last  four  years  against  organised  capital, 
and  that  it  has  therehy  frightened  investors.  1  deny  it.  The 
course  of  the  administration  has  been  directed  against  such  organ- 
ised capital  as  was  violating  the  statutes  of  the  United  States — 
and  no  other.  It  had  every  consideration  and  desire  to  aid  and 
assist  organised  capital  which  was  engaged  in  legitimate  business. 
— Hon.  Win.  H.  Taft,  to  Merchants  and  Manufacturers'  Association, 
Host  on,    Mass. 

The  tide  of  prosperity  may  ebb  and  flow,  but  the  great  waves 
of  industrial  wealth  will  continue  to  grow  in  volume  with  ever- 
incrensing  comfort  and  happiness  to  our  contented  people,  who 
win  soon  number  100,000,000.  And  because  of  our  Intelligent  and 
skillful  lahor,  made  so  because  of  stood  wages  and  good  living,  we 
shall  make  hetter  fabrics  and  huild  stronger  structures — that  In 
spite  of  their  higher  cost  in  the  beginning  will  he  cheaper  in  the 
end  and  will  he  wauled  by  the  people  in  every  corner  of  the  earth. 
So  that  we  shall  capture  the  markets  of  the  world  in  greater  vol- 
ume Without  ever  sacrificing  our  home  market,  the  foundation  of 
our   National    wealth   and   progress. — Hon.   James    S.    Sherman, 


ADVANCE  IN  COST  OF  LIVING. 


75 


IS92  1893  1894  1895  1896  1897  1698  1 899  1900  1901  1902  ,903  1904  1905  1906  I9C7  1908  1909  1910  1911 


Wood. 

Lumber  and  manufactures  thereof  are  dutiable.  While  the 
price  of  lumber  has  naturally  risen  owing  to  the  increasing  de- 
mands upon  our  forests,  manufactures  of  lumber  have  not  risen 
in  the  same  proportion.  The  following  table  and  chart  show 
the  course  of  the  prices  of  yellow  pine  boards  and  of  two  staple 
articles  of  wood  manufacture,  namely,  kitchen  chairs  and  kitchen 
tables : 

Actual  and  relative  wholesale  prices  of  yellow  pine  and  of  kitchen 
chairs  and  taolcs. 

[Compiled  from  Bulletin  No.  99,  U.  S.  Bureau  of  Labor.] 


Pine:  yellow, 
siding. 

Furniture: 
chairs, 
kitchen. 

Furniture: 
tables, 
kitchen. 

Year. 

Average 
price  per 
M  feet. 

Rela- 
tive 
price. 

Average 
price  per 
dozen. 

Rela- 
tive 
price.. 

Average 

price  per 

dozen. 

Relative 
price. 

1890_         

$20.7500 
19.9583 
18.6000 
18.5000 
18.5000 
16.9167 
16.4167 
16.4375 
18.6250 
20.0417 
20.7083 
19.6667 
21.0000 
21.0000 
21.4167 
24.9167 
29.3333 
80.5000 
30.5000 
33.0417 
80.8000 
30.5909 
J 

112.4 

108.1 
100.2 
100.2 
100.2 
91.6 
88.9 
89.0 
100.9 
108.5 
112.2 
106.5 
113.7 
113.7 
116.0 
134.9 
158.9 
165.2 
105.2 
178.9 
166.8 
165.7 

$4.2000 
4.2000 
4.2500 
4.2500 
3.5000 
8,6000 
3.5000 
3.5000 
3.3130 
4.0420 
5.2080 
4.7500 
4.9167 
5.0000 
4.7708 
4.7500 
5.1250 
5.7917 
6.0000 
5.5833 
5.5000 
5.7500 

109.8 

100.8 

111.1 

111.1 

91.5 

91.5 

91.5 

91.5 

86.6 

105.7 

136.1 

124.2 

128. 5 

130.7 

124.7 

124.2 

134.0 

151.4 

156.8 

145.9 

143.8 

150.3 

$15,000 
15.000 
15.000 
15.000 
14.250 
14.250 
13.800 
13.800 
13.800 
14.450 
15.600 
15.600 
15.600 
15.600 
15.600 
15.600 
16.500 
1^.000 
18.000 
18.000 
20.000 
21.000 

103.9 

1891 

1892      — * 

103.9 
128:9 

103.9 

98.7 

1893 

1894 _• 

is:  >r,                   

98.7 

1896  ._          

95.6 

1897 

95.6 

1898              

95.6 

1899 

100.0 

1900 

108.1 

1901             - 

108.1 

1902     

108.1 

1903                

108.1 

1004     

108.1 

1906     

108.1 

1906  .    -_.     

114.3 

1907 

124.7 

1908. 

124.7 

1909 

124.7 

1910 

138.6 

1911   _       

145.5 

The  attitude  of  the  government  toward  combinations  of  capital 
for  the  reduction  in  the  cost  of  production  should  be  exactly  the 
same  as  toward  the  combinations  of  labor  for  the  purpose  of 
bettering;  the  conditions  of  the  wage-worker  and  of  increasing 
his  share  of  the  joint  proiit  of  capital  and  labor.  They  are  both 
to  be  encouraged  in  every  way  so  long  as  they  conduct  themselves 
within   the   law. — Hon.    Win.   H.    Taft,   at   Columbus,   Ohio. 


70 


ADVANCE  IN   COST  OF   LIVING. 


1S4 

1S2 

JO    1891    IM2    1893    I8«4    IN)    IM*    i 

m    lew    low    ijuu    MM    i 

M     . 

•a    I 

m    :.«.    i 

til    1908    1909    1910    1 

1 

Its 

ir« 

174 

1:2 

IV.) 

ION 

111! 

11. 

inn 

li.i 
lr.J 

A 

iati 

i»s 

s 

t 

i-i  <i 

\ 

/  - 

U  1 

/ 

V 

14<> 

lie 

i:in 

/ 
/ 

-/ 

'if' 

J 

1  :i<> 

i 

V 

/ 

, 

/ 

12S 

* 

.^J 

/ 

/ 

120 

^ 

\ 

/ 

/ 

/ 

121 

122 

1211 

i 

/ 

/ 

/ 

1 

r 

' 

/ 

lis 

i 

j 

/ 

116 

i 

j 

/ 

114 

/ 

112 

/ 

HO 

lOH 
I'M 
!<•» 
102 

IM 

AS 

^S 

-- 

--. 

i  ^ 

/ 

1 

/ 

/ 1 

/ 

/ 

mi 

' 

^> 

1)2 



ti 

N 

i 

§4 

*a 

*<) 

It  will  be  seen  in  the  above  illustrations  that  the  greatest  rise 
in  prices  during  the  past  21  years  has  been  in  raw  commodities 
which  Were  free  of  duty,  that  raw  protected  commodities  come 
next,  and  that  the  smallest  relative  increase  in  price  appears  to 
have  been  in  manufactured  commodities,  practically  all  of  which 
are  dutiable. 

The  Bureau  of  Labor  in  Its  price  statistics  groups  all  articles 
into  nine  general  classes,  namely:  farm  products,  lumber  and 
building  materials,  food  products,  cloths  and  clothing,  metals  and 
implements,  fuel  and  lighting,  drugs  and  chemicals,  house  fur- 
nishing goods  and  miscellaneous.  The  tables  and  charts  which 
follow  show  the  index  numbers  of  prices  of  each  of  these  groups : 


The  policy  of  Washington  is  the  policy  of  the  Republican 
Party.— Senator  Cullom. 

Luxuries  to  the  European  laborer  are  necessities  to  the  Ameri- 
can.— Senator  Frye,   In   the   "American   Economist." 

We  have  lower  Interest  and  higher  wages,  more  money  and 
fewer  mortgages. — President   McKinley. 

I  am  a  protectionist  because  I  think  by  that  policy  the  workmen 
of  America  will  be  well  paid  and  not  underpaid. — Hon.  Oeorge  F. 
Hoar. 

The  people  have  no  patience  with  those  who  would  violate  the 
plighted  faith  of  the  Nation  and  stamp  its  obligations  with  dis- 
honor.— Hon.  Win.  McKinley  to  delegation  of  farmers,  at  Canton, 
September    22,    ISlMi. 

The  railways  ean  blame  no  one  but  themselves  If  the  revelation 
of  the  ilagrant  violations  of  law  and  of  their  unjust  administration 
of  a  public  trust  have  led  to  an  outburst  of  popular  indignation 
and  have  brought  on  temporary  excess. — Hon.  Wm.  H.  Taft,  at 
Columbus,  Ohio. 

A  tariff  for  revenue  only  resulted  In  cheaper  wool,  cheaper 
bread,  cheaper  everything*  there  was  no  doubt  abort  that;  but  did 
cheapness  produce  happiness,  as  they  said  it  would  t  No;  it  pro- 
duced misery,  just  as  we  said  it  would. — Hon.  M.  X.  Johnson,  in 
Congress,    March    24,    1807. 


Anything  that  makes  capital  idle,  or  which  reduces  or  destroys 
It,  must  reduce  both  wages  and  the  opportunity  to  earn  wages.  It 
only  requires  the  effects  of  a  panic  through  which  we  are  passing, 
or  through  which  we  passed  in  1SIK5  or  1N7:5,  to  show  how  closely 
united  in  a  common  Interest  we  nil  are  in  modern  society.  We 
are  iu  the  same  boat,  and  financial  and  business  storms  which 
affect  one  are  certain  to  affect  all  others, — Hon,  Wm,  H.  Taft, 
before   the   Cooper   I  nion,   New    York   City. 


ADVANCE  IN  COST  OF  LIVING. 


77 


Relative  prices  of  commodities,  by  years,  1891  to  1910,  and  by 
months,  January  to  December,  1911,  and  per  cent  of  increase 
in  prices  for  1911  over  each  preceding  year,  and  for  December, 
1911,  over  each  preceding  month  or  year,  by  groups  of  commo- 
dities. 


Year 
or  month. 


Farm  products. 


1890- 
1891- 
1892. 
1893- 

1894- 
1816- 
1896. 
1897. 
1898. 
1899_ 
190C. 
1901- 
1902- 
1903. 
1904. 
1905. 
1906- 
1907. 


1909_ 
1910_ 
1911. 


1911. 

January 

February— 

March 

April 

May 

June 

July 

August 

September.  _ 

October  

November— 
Decern ber. 


110.0 
121.5 
111.7 
107.9 
95.9 
93.3 
78.3 
85.2 
96.1 
100.0 
109.5 
116.9 
130.5 
118.8 
126.2 
124.2 
1"23.6 
137.1 
1,33.1 
153.1 
164.6 
162.0 


155.0 
152.7 
156.2 
156.1 
157.5 
158.2 
163.4 
163.1 
169.2 
172.0 
170.0 


Per  cent  of  in- 
crease— 


Rela 

tive 
price,  a 


>  be 


47.3 
33.3 
45.0 
50.1 
68.9 
73.6 
106.9 
90.1 
68.6 
62.0 
47.9 
38.6 
24.1 
36.4 
28.4 
80.4 
81.1 
18.2 
21.7 
5.8 

bi.e 


Food,  etc. 


S  «  o 

£  «  S 

S      oe 

o  s_  a  n 

%  ^S  * 


I  Rela- 
!  tive 
priee.a 


Per  cent  of  in- 
crease^— 


54.2 
39.6 
61.8 
57.2 
76.9 
81.8 
116.6 
99.1 
76.5 
69.6 
54.9 
45.1 
30.0 
42.8 
34.4 
36.6 
37.2 
23.7 
27.4 
10.8 
3.0 
4.7 


9.4 
11.1 

8.6 
8.6 

7.7 
7.2 


hi 
b 


112.4 

115.7 

103.6 

110.2 

99.8 

94.6 

83.8 

87.7 

94.4 

08.3 

104.2 

105.9 

111.3 

107.1 

107.2 

108.7 

112.6 

117.8 

120.6 

124.7 

128.7 

131.3 


127.9 
127.6 
126.5 
126.5 

1?5.2 

128.8 
129.9 
134.3 
134.5 
135.5 
135.9 
136.8 


rl'O 

Si 


i     5         tive 
-no     priee.a 

*°  g 


16.8 
13.5 
26.7 
19.1 
31.6 
38.8 
56.7 
49.7 
39.1 
33.6 
26.0 
24.0 
18.0 
22.6 
22.5 
20.8 
16.6 
11.5 
8.9 
5.3 
2.0 


Cloths  and  clothing. 


Per  cent  of  in- 
crease— 


w  u.  " 


21.7 
18.2 
32.0 
24.1 
37.1 
44.6 
63.2 
56.0 
44.9 
39.2 
31.3 
29.2 
22.9 
27.7 
27.6 
25.9 
21.5 
16.1 
13.4 
9.7 
6.3 
4.2 


113.5 
111.3 
109.0 
107.2 
96.1 
92.7 
91.3 
91.1 
93.4 
96.7 
106.8 
101. 0 
102.0 
106. 6 
109.8 
112.0 
120.0 
126.7 
116.9 
119.6 
123.7 
119.6 


121.9 
121.8 
121.9 
121.0 
120.6 
120.2 
120.1 
119.1 
118.8 
117.3 
116.6 
116.1 


rH   * 

U 

~  ft 


*XS  a 

;  £  o  o 

mi 


5.4 

7.5 

9.7 

11.6 

24.5 

29.0 

31.0 

31. 3 

28.1 

23.7 

12.0 

18.4 

17.3 

12.2 

8.9 

6.8 

b.8 

b5.6 

2.8 


b3.3 


20.8 

25.2 

27.2 

27.4 

24.3 

20.1 

8.7 

15.0 

13.8 

8.9 

5.7 

S.7 

b3.3 

b8.4 

b0.7 

b2.9 

b6.2 

b  2.9 


b4.8 
b4.7 
b4.8 
b4.1 
b'3.7 
b3.4 
b3.3 
b2.5 
b2.3 
bl  0 
b  .4 


a  Average  for  1890-1899=100. 


b  Decrease. 


Protection  brings  together  diversified  industries  which  never 
fail  to  vastly  increase  the  personal  intelligence,  industry  and  wage 
earnings   of  the  people. — Hon.  Justin    S.  Morrill. 

Many  of  our  great  industries,  including  the  silk  industry,  the 
pottery  industry,  the  carpet  industry,  and  the  steel-rail  industry, 
had  only  a  nominal  existence  until  adequately  protective  duties 
were  imposed  on  competing  foreign  products. — James  M.  Swank, 
in    the    "American    Economist." 

The  3,000,000  of  men  who  went  out  of  employment  -with  the 
revision  of  the  tariff  by  the  Democratic  party  found  employment 
In  the  enactment  of  the  Dingley  law  by  the  Republican  Party, 
and  a  million  and  a  half  have  been  added  to  those  who  have 
employment  in  the  industries  of  the  country. — Hon.  P.  P.  Camp- 
bell, in   Congress,   April   1,   1904. 


Those  foreign  countries  which  have  adopted  protection  have, 
in  the  elements  by  which  you  have  been  accustomed  to  test  the 
prosperity  of  a  nation,  improved  in  a  greater  ratio  and  more  rap- 
idlv  than  we  have  ourselves;  and  I  have  also  to  point  out  that  th£s 
tendency,  which  has  become  so  manifest  in  recent  years,  is  likely, 
as  every  sensible'  man  of  business  knows,  to  be  accentuated  as 
time  goes  on. — Hon.  Jos.  Chamberlain,  at  Liverpool,  October  27, 
1003. 


78 


ADVANCE  IN  COST  OF  LIVING. 


Relative  prices  of  commodities,   />//   fiears,  1891   to  1910,  and   by 
..months,  January  to  December,  1911,  and  per  cent  of  increase 
in  prices  for  1911  over  each  preceding  year,  and  for  December, 
1911,  over  each  preceding  month  or  year,  by  groups  of  commo- 
dities— Con  tinned. 


Fuel  and  lighting. 

Metals  and 
implements. 

Lumber   and   building 
materials. 

Per  cent  of  in- 

Per cent  of  in- 

Per cent  of  in- 

Kela- 

crease— 

Rela- 

crease — 

Rela- 

crease— 

Year 
or  month. 

o    . 

03   n 

J3 

at* 

"3   . 

s£S 

tive 

*>   85 

^     5        tive 

a>  M 

r-i         ^j 

tive 

*»   S3 

price. a 

fc* 

^  a     priee.a 

S3S 

S  «  ° 

priee.a 

q3  ^ 

£  o  o 

2«s 

.a  caQ 

g  <U 

>  to 

2 

X2  as  g 

d  o 

u^Ot, 

o  t,  a  >- 

jL-h 

22 

o  >  $  5 

w 

~ 

1-1 

1890 

104.7 

16.9 

17.4      119.2 

0.2 

b0.5 

111.0 

36.8 

30.0 

1891 

102.7 

19.2 

19.7  1  111.7 

6.9 

6.2 

108.4 

40.1 

33.1 

1892 

101.1 
100. 0 

21.1 

92.4 

21.6  1  106.0 

12.6 
18.6 

11.9 
17.8 

102.8 
101.9 

47.8 
49.1 

40.4 

1893 

22.9 

100.7 

41.6 

1894 

92.4 

32.5 

33.0 

90.7 

31.6 

30.8 

96.3 

57.7 

49.8 

1895 

98.1 
104.3 

24. 9 
17.4 

25.3 

17.8 

92.0 
93.7 

29.8 
27.4 

28.9 
26.6 

94.1 
93.4 

61.4 

62.6 

53.3 

1896 

54.5 

1897 

96.4 

27.0 

27.5 

86.6 

37.9 

37.0 

90.4 

6S.0 

59.6 

1898 

95.4 

28.3 

28.8 

86.4 

38.2 

37.3 

95.8 

58.6 

50.6 

1899_._ 

105.  q 

120.9 

16.6 
1.2 

17.0 

1.7 

114.7 
120.5 

4.1 
b  .9 

3.4 
bl.6 

105.8 
115.7 

43.6 
31.3 

36.4 

1S0Q 

24.7 

1901 

119.5 
134.3 

2.4 
b8.9 

2.8 
b8.5 

111.9 

117.2 

6.7 
1.9 

6.0 
1.2 

116.7 
118.8 

30.2 
27.9 

23.7 

1902 

21.5 

1903 

149.3 
132.6 

bl8.0 
b7.7 

bl7.7 
b7.3 

117.6 

109.6 

1.5 

8.9 

.9 

8.2 

121.4 

122.7 

25.1 

23.8 

18.9 

1904 

17. « 

1906 

128.8 

b  5.0 

b4.6 

122.5 

b2.5 

b3.2 

127.7 

19.0 

13.0 

1006 

131.9 

b7.2 

b6.8 

135.2 

bll.7 

bl2.3 

14,0.1 

8.4 

3.0 

1907 

135.0 

b9.3 

b9.0 

143.4 

bl6.7 

1)17.3 

146.9 

3.4 

bl.8 

1908 

130.8 

b6.4 

b6.0 

125.4 

b4.8 

b5.4 

133.1 

14.1 

8.4 

1909 

129.3 

b5.3 

b5.0 

124.8 

b4.3 

b5.0 

138.4 

9.8 

4.3 

1910 

125.4 
122.4 

b2.4 

b2.0 
.4 

128.5 
119.4 

b7.1 

b7.7- 

b  .7 

153.2 
151.9 

b  .8 

b5.8 

1911 

b5.0 

1911. 

January 

123.9 

b  .8 

119.4 

b  .7 

155.0 

b6.9 

February 

124.1 

bl.O 

120.0 

bl.2 

156.9 

b8.0 

March 

124.4 

bl.2 

120.6 

bl.7 

157.6 

b8.4 

April 

121.0 

1.6 

120.7 

bl.7 

150.4 

b9.5 

May 

120.9 

1.7 

120.0 

bl.2 

154.6 

b6.7 

120.8 
121.1 

1.7 
1.5 

119.2 
119.1 

b  .5 

b  .4 

150.3 
149.  B 

b4.0 

July 

1.3.7 

August 

121.9 

.8 

119.6 

b  .8 

147.2 

b2.0 

September— 

122.2 

.0* 

119.3 

b  .6 

148.3 

1)2.7 

Octobcr  

123.0 

b  .1 

118.5 

.1 

146.7 

bl.6 

November  ___ 

122.4 

.4 

117.7 

.8 

146.4 

bl.4 

December  .. 

122.9 

118.6 

144.3 



a  Aver 

age  for  1890-1899=100. 

b  Decree 

se. 

The  civilized  world  substantially  protects  itself,  thus  forcing 
us  to  protect  ourselves. — Hou.  D.  B.  Henderson,  in  the  "American 
Economist." 

The  avowed  policy  of  the  National  administration  of  these  two 
Presidents  has  heen  and  is  to  govern  the  islands,  having  regard 
to  the  interest  and  -welfare  of  the  Filipino  people,  and  hy  the 
spread  of  general  primary  and  industrial  education  and  hy  practice 
in  partial  political  control  to  tit  the  people  t hemselves  to  maintain 
a  stable  and  well-ordered  government  affording  equality  of  right 
and  opportunity  to  all  citizens. — Hon.  Win.  H.  Taft,  in  special 
report    to   the    President 


The  Wilson  hill  was  enacted  into  law.  The  proof  of  the 
pudding  is  in  the  eating*  There  were  three  million  men 
working  in  the  productive  industries  and  on  their  pro- 
ducts that  were  thrown  out  of  employment.  They,  learn- 
ing through  their  stomachs  as  to  the  effects  of  it.  helped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  and  mountains  will  fall  upon  you  again,  I  hope, 
in    1012,    and    I   know    in    1014   and    1016.— Ex-Speaker    Cannon. 


ADVANCE  IN  COST  OF  LIVING. 


79 


Relative  prices  of  commodities,  by  years,  1890  to  11)11,  and  by 
months,  January  to  December,  1911,  and  per  cent  of  increase 


in  prices  for  19++  over  each  p 

receamg  year, 

and  for  December , 

1911, 

over 

each  preceding  month  or  year,  by  groups  of  commo- 

dities— Concluded. 

Drugs 
and  chemicals. 

House-furnishing 
goods. 

Miscellaneous. 

All  commodities. 

ner  cent  of 

Per  cent  of 

Per  cent  of 

Per  cent  of 

Rela- 

increase— 

Rela- 

inorease- 

Rela- 

increase— 

Rela- 

increase — 

Year  or 

.a 

03     . 

OS  2  >■ 

03     . 

OS    £>    >> 

£3 
o 

03     . 

month 

tive 

a>  t-, 

83 

tive 

*s 

tive 

S3 

2  S  *   tive 

03 

OS    jj    >» 

price, 
(a) 

>  to 

-a  *£ 

s  S3  a 
a  <»  o 

price, 
(a) 

U    OJ 

>  ta 

op 

«  «>  o 

price. 
(a) 

>  ba 

S  a)  o 

price. 
(a) 

>  fcfl 
o.S 

SS3 

T3 

T3 

5s  g 
1-1  ft 

8g2 

ft 

1-1  ft 

iH    OJ 
OS   V 

1-1  ft 

a 

a 

a 

a 

•  i 

hH 

1—1 

1—1 

1890 

110.2 

9.2 

10.2 

111.1 

(b) 

0.1 

110.3 

18.9 

17.5 

112.9 

14.5 

14.4 

1891 

103.6 

16.1 

17.2 

110.2 

0.8 

.9 

109.4 

19.9 

18.5'  111.7 

15.8 

15.7 

1892 

•102.9 
100.5 

16.9 
19.7 

18.0 
20.8 

106.5 
104.9 

4.3 
5.9 

4.4 
6.0 

106.2 
105.9 

23.5 
23.9 

22.0;  106.1 

21.9 

21.8 

189S 

22.4    105.6 

22.4 

22.3 

1894 

89.8 

84.0 

35.2 

100.1 

11.0 

11.1 

99.8 

31.5 

29.9 

96.1 

34.5 

34.4 

1895 

87.9 

36.9 

38.1 

96.5 

15.1 

15.2 

94.5 

38.8 

37.1 

93.6 

38.1 

38.0 

1896 

92.6 

29.9 

31.1 

94.0 

18.2 

18.3 

91.4 

43.5 

41.8 

90.4 

43.0 

42.9 

1897 

94.4 

27.4 

28.6 

89.8 

23.7 

23.8 

92.1 

42.5 

40.7 

89.7 

44.1 

44.0 

1898 

106.6 

12.9 

13.9 

92.0 

20.8 

20.9 

92.4 

42.0 

40.3 

93.4 

38.4 

38.3 

1899 

111.3 

8.1 

9.1 

95.1 

16.8 

16.9 

97.7 

34.3 

32.7 

101.7 

27.1 

27.0 

1900 

115.7 

4.0 

4.9 

106.1 

4.7 

4.8 

109.8 

19.5 

18.0 

110.5 

17.0 

16.9 

1901 

115.2 

4.4 

5.4 

110.9 

.2 

.3 

107.4 

22.2 

20.7 

108.5 

19.2 

19.1 

1902 

114.2 

5.3 

6.3 

112.2 

el.O 

C  .9 

114.1 

15.0 

13.6 

112.9 

14.  r 

14.4 

1903 

112.6 

6.8 

7.8 

113.0 

cl.7 

ci.e 

113.6 

15.5 

14.1 

113.6 

13 .8 

13.7 

1904 

110.0 

9.4 

10.4 

111.7 

c  .5 

C  .4 

111.7 

17.5 

16.0 

113.0 

14.4 

14.3 

1905 

109.1 

10.3 

11.3 

109.1 

1.8 

1.9 

112.8 

16.3 

14.9 

115.9 

11.6 

11.5 

1906 

101.2 

18.9 

20.0 

111.0 

.1 

.2 

121.1 

8.3 

7.0 

122.5 

5.6 

5.5 

1907 

109.6 

9.8 

10.8 

118.5 

c6.2 

C6.2 

127.1 

3.2 

2.0 

129.5 

c  .2 

C  .2 

1908 

110.4 

9.0 

10.0 

114.0 

C2.5 

C2.5 

119.9 

9.4 

8.1 

122.8 

5.3 

5.2 

1909 

112.4 

7.0 

8.0 

111.7 

c  .5 

c  .4 

125.9 

4.2 

2.9 

126.5 

2.2 

2.1 

1910 

117.0 

2.8 

3.8 

111.6 

c  .4 

C  .4 

133.1 

c  1.4 

C2.6 

131.6 

cl.7 

cl.8 

1911 

120.3 

.9 

111.1 

.1 

131.2 



cl.2 

129.3 



c  .1 

1911. 

Jan 

117.8 

3.1 

110.9 

.  .3 

131.1 

el.l 

128.9 

.2 

Fob 

118.5 

2.4 

110.9 

.3 

131.0 

cl.l 

129.0 



.2 

Mar 

118.7 

2.3 

110.9 

.3 

133.5 

C2.9 

129.3 

c  .1 

Apr 

118.6 

2.4 

111.2 

(i) 

132.5 

c2.2 

129.0 



.2 

May 

lis.- 

2.2 

111.2 

dp 

131.4 

cl.4 

128.1 

.9 

June 

118.6 

2.4 

111.2 

(d) 

133.0 

c2.6 

128.4 

.6 

July—. 

119.8 

1.3 

111.2 

(d) 

129.8 



c  .2 

128.8 

.3 

Aug 

123.2 

Cl.5 

111.2 

(d) 

129.1 

.4 

129.4 



c  .2 

Sept.— 

122.5 

c  .9 

111.2 

(d) 

129.8 

C  .2 

129.8 

c  .5 

Oct 

123.2 

cl.5 

111.2 

(h 

132.9 

C2.5 

129.8 

c  .5 

Nov 

121.9 

c  .4 

111.2 

(d) 

130.8 

c  .9 

129.2 

(d) 

Dec 

121.4 

111.2 

129.6 

129.2 

a  A\> 

erage 

for  1890-1899 

=100. 

cDe 

crease 

bSa 

me  as 

averaj 

*e  pric 

3  fori 

311. 

dSa 

me  as 

aver  a 

?e  pric 

e  for  I 

)ecemt 

er. 

A  glance  at  the  three  charts  will  show  that  the  greatest  in- 
crease in  prices  has  been  in  commodities  which  are  either  raw  or 
have  passed  through  the  least  process  of  manufacture,  namely  : 
farm  products,  lumber  and  building  materials,  and  fuel  and  light ; 
that  food  products  and  chemicals,  which  are  partly  raw  and 
partly  manufactured,  come  next,  while  the  prices  of  cloths  and 
clothing,  metals  and  implements,  and  house  furnishing  goods, 
which  are  practically  all  protected  and  the  most  highly  manu- 
factured commodities,  have  risen  least. 


The  Jul  in  mistral  ion  of  exact  justice  by  courts  without  fear  or 
favor,  unmoved  by  the  influence  of  the  wealthy  or  by  the  threats 
of  the  demagogue,  is  the  highest  ideal  that  a  government  of  the 
people  can  strive  for,  and  any  meant  by  which  a  suitor,  however 
unpopular  or  poor,  is  deprived  of  enjoying  this  is  to  be  condemned. 
It  Is  important,  however,  that  appeals  to  judicial  remedies  should 
be  limited  in  such  a  way  that  parties  will  not  use  them  merely 
to  delay  and  so  clog;  efficient  and  just  executive  or  legislative 
action, — Hon.    Win.    H.    Tali,    at    Columbus,    Ohio. 


80 


ADVANCE  IN  COST  OF  LIVING. 


Farm  Products,  Lumber  and  Building  Materials,  and  Fuel  and  Lighting 

IMI    1892    1893    1994    1895    1896    1897    I89S    1899    1900    1901     1902    190}    1904    1905    1906    1907    1908    1909    1910    1911 


.umber    and 


Food  Products  and  Drugs  and  Chemicals 


1*90    tMI    1192    1893    1844    I89S    1896    1897    1893    1 

899    1908    1901     1962    1983    1904    1905    1908    1907    1908    1901    1910    19 

« 

lim 

1U4 

& 

11H 

114 

.$ 

S 

m 

tea 

100 

OR 

n 

IK) 

K«l 

M 

no 



Food    product* 


Cloths  and  Clothing,  Metals  and  Implements  and  House  Furnishing  Goods 

1890    1891    1892    1893    IW4    1893    1898    1897    1898    1899    1900    1901     1901    MM    1904    1903    1906    1907    1908    1989    1911    1411 


Cloths  and  rlothla 
Metals  and    Im- 
plements. 


ins;  goods 


Protection  steadily  enlarges  the  home  market  for  farm  products. 
— Hon.    L..    R.    Casey. 

Protection  alone  Insures  American  labor  against  European 
pauper  wages. — Former  Senator  Casey,  in  the  "American  Econ- 
omist." 

Our  Government  should  he  as  exacting  from  foreigner*  as  from 
Americans.  Make  them  pay  duty  while  we  pay  taxes. — Hon.  P.  C. 
Cheney. 

The  present  business  system  of  the  country  rests  on  the  pro- 
tcctive  tariff*,  and  any  attempt  to  change  it  to  a  free-trade  basis 
will  certainly  lead  to  disaster. — Hon.  Win.  II.  Taft,  at  Columbus, 
Ohio. 


Every  one  kuows  that  the  average  American  consumer  pays 
more  than  the  average  British  consumer.  Vet  the.  British  con- 
sumer, in  spite  of  that  advantage,  is  by  no  moans  so  well  off  as 
the  American  consumer. — The   Loudon   "Daily  Telegraph." 


PROSPERITY  UNDER  PRESIDENT 
TAFT'S  ADMINISTRATION. 



Prosperity  among  the  people  of  the  United  States  during  the 
three  years  of  President  Taft's  administration  has  fully  kept 
pace  with  that  which  has  characterized  conditions  in  the  United 
States  since  the  return  in  1897  to  the  policies  of  the  Republican 
Party.  Industrial,  commercial  and  financial  activities  may  be 
considered,  separately  or  in  combination,  as  evidences  of  the 
prosperity  of  a  nation  and  its  people.  In  determining  whether 
the  people  of  the  United  States  have  been  prosperous  during 
the  15  years  ssnce  the  return  to  Republican  principles,  and  espe- 
cially during  the  last  three  years,  consideration  should  be  given 
to  the  evidences  of  industrial  activity,  the  growth  of  commerce, 
the  movements  of  merchandise  by  the  great  transportation  sys- 
tems of  the  country,  and  the  activities  of  the  great  financial 
institutions  which  supply  the  necessary  funds  for  the  conduct 
of  the  various  branches  of  industry  and  commerce  upon  which 
depend  the  employment  and  earnings,  and  therefore  the  pros- 
perity of  the  people.  It  is  therefore  essential  in  this  discussion 
of  prosperity  to  merely  present  in  concrete  form  the  figures 
which  evidence  the  activities  in  these  lines  and  the  results  which 
have  followed. 

Agriculture. 

First,  as  to  the  value  of  agricultural  products,  for  agriculture 
must  still  be  considered  the  basis  of  our  prosperity.  The  esti- 
mates of  the  Department  of  Agriculture  as  to  wealth  production 
on  farms  cover  the  period  from  1900  to  1911,  and  a  recent  issue 
of  the  Wall  Street  Journal,  an  accepted  authority,  makes  also 
an  estimate  of  the  value  of  all  crops  for  1912  based  upon  the 
June,  1912,  reports  of  the  Department  of  Agriculture.  These, 
figures  of  wealth  production  on  farms,  year  by  year,  from  1900 
to  1911,  with  the  estimate  for  1912  above  referred  to,  are  as 
follows : 

Year,  Value  of  farm  products, 

1900     $4,717,069,973 

1901  .5  317  000,000 

1902  5:617.000:000 

1903  5.917,000,000 

1904  6.159,000,000 

1905  6,309.000,000 

1906 6,755,000,000 

1907 7,488,000,000 


1908  7,778,000,000 

1 909  8.760.000.000 

I 


909  .. 
1910 


1911  . 


.760,000.000 
8.694,000.000 
8.417,000.000 
1912*  8,912,700,000 

•    "Estimated  by  Wall  Street  Journal. 

Another  evidence  of  the  prosperity  of  the  agricultural  element 
is  found  in  the  enormous  increase  in  the  value  of  farm  proper- 
ties as  shown  by  a  comparison  of  the  Census  figures  of  1910 
with  those  of  1900,  the  collection  of  statistics  upon  this  subject 
being  only  that  of  the  decennial  census.  The  Census  figures  of 
1900,  showing  value  of  farms  and  farm  property,  including  build- 
ings, were  $20,440,000,000,  and  those  of  1910,  $40,991,000,000,  the 
stuted  value  of  farms  and  farm  property  having  thus  actually 
doubled  during  the  decade  from  1900  to  1910.  The  average  value 
of  farm  land  per  acre  was,  according  to  the  Census  figures,  in 
1900,    $15.57,    aud    in    1910,    $32.40;    while    "the    average   value   of 

•81 


82 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 


all  property  per  acre  on  land  in  farms"  was,  in  1900,  $24.37,  and 
in  1910,  $46.64.  Prices  of  principal  farm  products  in  the  New 
York  wholesale  markets,  as  recorded  by  the  Bureau  of  Statistics, 
were:  of  wheat,  No.  2,  red  winter,  in  June,  1912,  $1,121%  per 
bushel,  against  an  average  of  $1.04%  during  the  calendar  3rear 
1908,  the  year  immediately  preceding  the  beginning  of  the  pres- 
ent Administration;  96.3  cents  in  1907,  86.5  cents  in  1906,  and 
$1,028  in  1905,  the  figure  for  June  6,  1912,  being  higher  than  the 
average  of  any  earlier  year  from  1890  down  to  date,  except  1909, 
when  the  average  was  $1,263.  Of  corn  the  wholesale  price  on 
June  1,  1912,  was  85  cents  per  bushel,  against  an  average  of 
71.1  cents  in  1911,  66.8  cents  in  1910,  76.7  cents  in  1909,  and  78.6 
cents  in  1908,  the  figure  for  June  being  higher  than  the  average 
of  any  year  from  1890  down  to  1912.  Of  cotton,  the  June  7, 
1912,  figures  show  the  price  in  New  York  11.65  cents  per  pound, 
against  an  average  of  13.01  cents  in  the  calendar  year  1911,  15.11 
cents  in  1910,  12.68  cents  in  1909,  10.62  cents  in  1908,  9.25  cents 
in  1900,  and  5.94  cents  in  1898.  Of  cattle,  the  Bureau  of  Statis- 
tics' reports  from  Chicago  of  "top  price  per  100  pounds  for 
native  steers  on  the  hoof"  are,  for  June  1,  1912,  $9.35,  against 
$6.50  on  June  3,  l9ll ;  $8.55  in  June,  1910,  $7.25  in  June,  1909,  and 
$7.75  in  June,  1908.  The  number  of  cattle  on  farms,  however,  is 
materially  reduced,  as  shown  by  tables  printed  elsewhere,  the 
number  of  milch  cows,  according  to  the  estimates  of  the  Depart- 
ment of  Agriculture,  being  20,699,000  on  June  1,  1912,  against 
21,720,000  at  the  corresponding  date  in  1909,  and  of  oxen  and 
cattle  aside  from  cows,  37,260,000  on  January  1,  1912,  against  its 
estimate  of  49,379.000  for  January  1,  1909,  and  the  Census  fig- 
ures of  41,173,744  for  April,  1910. 


Manufactures. 

That  manufacturing  industries  of  the  United  States  also  show 
great  prosperity,  equal  perhaps  to  that  of  the  agricultural  in- 
dustries, is  quite  apparent  from  a  study  of  the  Census  and  Bu- 
reau of  Statistics'  figures.  The  Census  Bureau  recorded  the  manu- 
factures produced  in  the  United  States  in  the  calendar  year  1904 
and  1909  through  its  census  of  manufactures  of  1905  and  the 
general  census  of  1910,  while  estimates  as  to  the  activities  of 
the  manufacturing  industries  later  than  the  results  shown  by 
the  census  may  be  made,  with  a  fair  degree  of  accuracy,  from 
reau  of  Statistics  figures.  The  Census  Bureau  recorded  the  manu- 
facturers' material  and  exports  of  manufactures.  The  Census 
Bureau  shows  the  number  of  wage  earners,  amount  of  wages 
paid  and  value  of  manufactures  produced  in  the  United  States 
at  each  decennial  census  since  1850  and  including  the  quin- 
quennial census  of  1905,  as  follows : 


Year. 

Number  of 
wage  earners. 

Wages  paid. 

Value   of 

manufactured 

products. 

1850.. 

067,059 

1,311,246 
2,068,996 
2r732,696 
4,261,613 
6,808,406 
5,470,321 
6,615,046 

1236,765,464 
878,8 

775,684,848 
947,958,796 

1,891,228,321 
2,822,838,877 

2,611,540,532 
3,427,037,884 

$1,019,106,616 

I860    

.S61.676 

1870 _.     

1880    

6,869,579,191 

L890 

9,872,487,288 

1900 

18,004,400,148 

1905 _._ 

'.147,087 

1910 

20,672,051,870 

It  will  be  seen  from  the  above  table  that  the  number  of  wage 
earners  in  the  manufacturing  industries  increased  considerably 
more  than  one  million  in  the  decennial  period  1900-1910;  that 
the  wages  paid  increased  more  than  one  billion  dollars,  and  that 
the  value  of  manufactures  turned  out  grew  from  i3  billion  to 
20  2/3  billion  dollars.  These  Census  figures  of  1910,  as  above 
indicated,  cover  the  production  in  the  calendar  year  1909.  As 
to  the  details  of  this  growth  in  manufactures,  the  increased 
production   of  the   various   classes   of   articles,   and   wages  paid 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION.  83 

in  the  production  of  the  various  groups  of  articles,  together 
with  a  comparison  of  the  figures  of  1910  with  those  of  earlier 
years,  the  reader  is  referred  to  a  table  printed  on  another 
page  of  this  volume,  and  readily  found  by  means  of  the  In- 
dex, which,  shows  the  number  of  persons  employed,  the  amount 
of  wages  paid,  and  value  of  product  of  about  50  principal  arti- 
cles of  manufacture.  A  view  of  the  prosperity  of  any  given  line 
of  industry  and  of  the  workers  engaged  therein  may  therefore 
be  obtained  by  a  study  of  the  figures  in  question.  Another  table, 
also  of  interest  in  showing  the  effect  of  manufacturing  activities 
upon  other  closely  allied  industries  is  that  entitled  "Relative 
Conditions  of  Prosperity  in  the  Manufacturing  and  Non-man  u- 
facturing  Sections  of  the  United  States,  Respectively,"  which 
shows  a  much  greater  value  of  farm  property,  bank  deposits, 
and  other  evidences  of  prosperity  in  those  sections  in  which  the 
principal  manufacturing  industries  are  located  than  in  the  non- 
manufacturing  section.  (See  map  and  table  on  cover  of  this 
volume.) 

The  figures  above  quoted,  as  already  indicated,  relate  to  con- 
ditions in  census  years.  Evidence  of  prosperity  in  the  manufac- 
turing industries  in  years  subsequent  to  the  census  of  1910, 
which  covered  the  operations  of  1909,  is  found  in  the  Bureau  of 
Statistics  figures  of  imports  of  manufacturers'  materials  and 
exports  of  manufactures.  These  figures  show  the  value  of  crude 
materials  imported  for  use  in  manufacturing,  in  the  fiscal  year 
1909,  at  451  million  dollars;  in  1910,  568  million;  in  1911,  511 
million,  and  for  1912  is  estimated  by  the  Bureau  of  Statistics  at 
about  650  million  dollars.  The  value  of  manufactures  imported 
for  further  use  in  manufacturing  was,  in  1909,  222  million  dol- 
lars ;  in  1910,  285  million;  in  1911,  288  million,  and  for  the  fiscal 
year  1912  is  slightly  in  excess  of  the  figures  for  1911.  "Free 
raw  material"  has  been  the  slogan  of  the  Democracy  for  many 
years.  The  figures  of  the  Bureau  of  Statistics  show  that  the 
value  of  merchandise  imported  free  of  duty  was,  in  the  fiscal 
year  1895  under  the  low  tariff  Wilson  law,  363  million  dollars, 
and  in  1896,  still  under  the  same  law,  370  million  dollars ;  while 
in  the  fiscal  year  1909  under  the  Dingley  law  the  value  of  the 
free  merchandise  imported  was  600  million  dollars ;  in  1910,  the 
first  year  under  the  Payne  law,  755  million  dollars;  in  1911,  777 
million,  and  for  the  fiscal  year  1912  approximately  900  million  dol- 
lars. If  to  this  enormous  figiire  of  900  million  dollars'  worth  of 
free  merchandise  entering  the  United  States  under  the  Paj'ne 
law  in  1912  is  added  the  value  of  non-dutiable  merchandise 
brought  from  Porto  Rico  and  Hawaii — all  of  which  enters  free 
of  duty  as  a  result  of  Republican  legislation — the  value  of  duty- 
free imports  entering  continental  United  States  during  the  fiscal 
year  1912  will  aggregate  one  billion  dollars,  against  an  annual 
average  of  371%  million  dollars  during  the  three  years  in  which 
the  Wilson  low  tariff — free  raw  material — law  was  in  operation. 

Another  evidence  of  the  activity  of  the  manufacturers  of  the 
United  States  is  found  in  the  very  large  exportations  of  manu- 
factures, which  for  the  fiscal  year  1912  amounts  to  over  one 
billion  dollars.  Thus  the  remark  of  the  late  Thomas  B.  Reed 
that  "the  United  States  is  a  billion  dollar  country"  is  exempli- 
fied in  the  fact  that  in  the  fiscal  year  1912  the  inerelid  ndi.se  en- 
tering continental  United  States  free  of  duty — on  which  not  one 
penny  of  tariff  is  paid — amounts  to  one  billion  dollars,  the 
value  of  manufactures  exported  also  amounts  to  one  billion  dol- 
lars, while  the  total  value  of  merchandise  exported  is  about  two 
and  one-quarter  billion  dollars  and  exceeds  that  of  any  earlier 
year. 

Another  feature  of  interest  in  the  figures  of  exports  of  manu- 
factures is  the  contradiction  which  they  give  to  the  frequent 
assertion  that  other  parts  of  the  world  will  not  buy  from  a 
country  which  maintains  a  high  tariff  upon  merchandise  im- 
ported. During  the  three  years'  operation  of  the  Wilson  low 
tariff  law,  in  which  exports  were  stimulated  by  depressed  condi- 
tions at  home,  the  total  value  of  merchandise  exported  averaged 
896  million  dollars  per  annum  and  the  value  of  manufactures 
exported  258  million  per  annum.     Thus  the  average  annual  ex- 


84         PROSPERITY  UNDER  PRESIDENT  TAFTS  ADMINISTRATION. 

portation  from  the  United  States  in  the  three  years'  operation 
of  the  Wilson  low  tariff  law  was  896  million  dollars,  against 
about  2,250  million  in  1912,  under  the  Payne  law;  and  the  aver- 
age annual  value  of  manufactures  exported  during  the  three 
years'  operation  of  the  Wilson  law,  258  million  dollars,  as  com- 
pared with  1,000  million  in  the  fiscal  year  1912,  under  the  Payne 
law.  These  figures  evidence  not  only  prosperity  in  1912,  but  also 
prove  the  inaccuracy  of  the  claim  that  a  protective  tariff  inter-t 
feres  with  exportation.  Detailed  figures  of  the  imports  and 
exports  by  great  groups  for  a  long  term  of  years  are  printed 
on  other  pages  of  this  volume  and  can  readily  be  found  by 
reference  to  the  Index.  The  above  figures,  it  is  proper  to  state, 
are  those  of  fiscal  years  and  under  the  term,  "manufactures," 
include  both  manufactures  for  further  use  in  manufacturing  and 
manufactures  ready  for  consumption,  but  not  manufactured 
foodstuffs. 

Transportation. 

Still  further  evidence  of  business  and  industrial  activity  is 
shown  in  the  figures  of  freight  moved  by  the  railways  of  the 
country,  details  of  which  will  be  found  in  tables  appearing  else- 
where in  this  volume,  readily  found  by  reference  to  the  Index ; 
and  while  the  latest  figures  available  in  the  reports  of  the  Inter- 
state Commerce  Commission  are  for  the  year  1910,  they  show  a 
marked  contrast  with  those  of  earlier  years.  The  number  of 
tons  of  freight  reported  as  carried  in  1910  is  1,850  million,  against 
687  million  in  1895,  1,082  million  in  1900,  and  1,428  million  in 
1905  ;  the  total  quantity  of  freight  moved  by  rail  in  1910,  under 
the  operations  of  the  Payne  law,  being  thus  nearly  three  times 
as  great  as  in  1895,  under  the  operations  of  the  Wilson  law.  The 
compensation  paid  to  employees  in  1910  is  given  at  1,144  million 
dollars,  against  447  million  dollars  in  1894,  these  figures  being 
in  all  cases  those  of  the  Interstate  Commerce  Commission. 
Meantime  the  revenue  per  ton  per  mile  received  by  the  railroads 
has  fallen  from  an  average  of  0.86  cents  in  1894  to  0.753  cents  in 
1910. 

General   Business    Conditions. 

Another  evidence  of  prosperity  is  found  in  bank  deposits  and 
bank  clearings,  deposits  in  savings  banks  relating  especially  to 
the  prosperity  of  the  masses,  while  like  figures  for  other  classes 
of  banks  apply  more  especially  to  those  engaged  in  manufactur- 
ing, transportation  and  commerce.  A  table  printed  on  another 
page  and  readily  found  by  reference  to  the  Index  will  show  the 
bank  deposits  and  bank  clearings  for  a  long  term  of  years. 
These  tables  show  that  deposits  in  savings  banks,  which 
amounted  to  1,778  million  dollars  in  1894,  had  reached  2,390 
million  in  1900,  4,070  million  in  1910,  and  4,213  million  in  1911 ; 
the  number  of  depositors  having  increased  from  4,777,687  in 
1894  to  9,597,185  in  1911.  The  total  bank  deposits,  including 
in  this  term  National  banks,  State  banks,  and  private  banks, 
are  shown  to  have  been  4,651  million  dollars  in  1894,  7,239  million 
in  1900,  15,283  million  in  1910,  and  15,906  million  dollars  in  1911. 
Bank  clearings,  which  in  1894  amounted  to  45  billion  dollars, 
were  in  1900  85  billion,  in  1905  141  billion,  and  in  1911  159 
billion  dollars,  a  higher  figure  than  in  any  earlier  year  except 
1910,  when  the  total  reached  169  billion. 

Other  evidences  of  prosperity  in  greater  detail  as  to  classes. 
groups  of  industries,  etc.,  are  found  in  a  table  on  another  page 
entitled  "Financial,  Commercial,  and  Industrial  Conditions  in  the 
United  States  in  1892,  1896,  and  1912." 

One  evidence  of  prosperity  of  which  little  is  seen  on  the  sur- 
face is  the  vast  increase  in  the  number  of  people  who  are  share- 
holders in  the  great  railroad  and  industrial  corporations  of  the 
country.  The  Wall  Street  Journal  recently  published  a  state- 
ment, compiled  from  official  returns  of  242  corporations,  which 
had  voluntarily  made  statements  on  the  subject,  and  these  re- 
turns showed  872,393  persons  who  are  shareholders  in  1911  against 


PROSPERITY  UNDER  PRESIDENT  TAFT*S  ADMINISTRATION.         85 

394,842  five  years  ago  and  226,480  ten  years  ago.  The  number 
of  shareholders  in  the  242  corporations  had  increased  120  per 
cent  in  five  years  and  280  per  cent  in  ten  years.  Women  form 
from  30  to  50  per  cent  of  the  shareholders  in  certain  of  the  great 
corporations.  One  company,  the  Pennsylvania,  showed  that  its 
stock  was  held  by  69,760  persons.  Five  years  ago  its  sharehold- 
ers numbered  but  40.153.  While  it  is  not  improbable  that  the  list 
of  shareholders  reported  by  the  242  corporations  contains  some 
duplications  by  reason  of  the  fact  that  in  some  cases  one  person 
is  a  holder  of  shares  in  more  than  one  company,  the  fact  that 
the  entire  stock  of  the  242  companies  reporting  was  but  a  small 
share  of  the  total  of  stocks  of  the  various  corporations  and 
business  organizations  of  the  country,  indicates  that  the  total 
number  of  persons  having  investments  in  securities  of  this  class 
is  very  large — is  in  fact  to  be  counted  by  millions. 


COMPARISON   OF   CONDITIONS   IN   1912  WITH   THOSE   OF   1897. 

Financial,     Commercial     and     Industrial     Conditions     in     the 
United  States  in  1897  and  at  Latest  Available  Date. 

Value  of  all  farm  products,  estimated  by  the  Department  of 
Agriculture:  in  1897,  4,250  million  dollars;  in  1907,  7,500  mil- 
lions; in  1911,  8,417  millions. 

Value  of  farm  animals :  on  January  1,  1897,  $1,655,415,000 ;  on 
January  1,  1908,  $4,331,230,000;  on  January  1,  1912,  $5,008,149,000. 

Value  of  horses:  1897,  $452,650,000;  in  1908,  $1,867,530,000;  in 
1912,  $2,172,573,000. 

Value  of  mules:  1897,  $92,302,000;  in  1908,  $416,939,000;  in 
1912,  $525,600,000. 

Value  of  cattle  :  1897,  $877,169,414 ;  in  1908,  $1,495,995,000 ;  in 
1912,  $1,605,478,000. 

Value  of  sheep:  1897,  $67,021,000;  in  1908,  $211,736,000;  in 
1912,  $181,170,000. 

Value  of  swine:  1897,  $166,273,000;  in  1908,  $339,030,000;  in 
1912,  $523,328,000. 

Farm  value  of  sheep  per  head:  1897,  $2.46;  in  1907,  $3.88;  in 
1912,   $3.46. 

Value  of  wool  product:  1897,  30  million  dollars;  in  1907,  78 
millions ;  in  1911,  67  millions. 

Farm  value  of  the  corn  crop :  1897,  501  million  dollars ;  in  1907, 
1,337  millions;  in  1911,  1,565  millions.  Bflon   noil 

Farm  value  of  wheat  crop :  1897,  428  million  dollars ;  in  1907, 
554  millions;  in  1912,  543  millions. 

Hay  cijpp  of  the  United  States  :  1897,  401  million  dollars ;  in 
1907,  744* millions  ;  in   1911,  695  millions. 

Potato  crop  of  the  United  States :  1897,  90  million  dollars ; 
in  1907,  184  millions;  in  1911,  234  millions. 

Beet  sugar  product  of  the  United  States :  1897,  84  million 
pounds ;  in  1907,  967  millions,  or  eleven  times  as  much  in  1907 
as  in  1897,  and  the  beet  sugar  production  in  1910  was  1,020,344,000 
pounds  or  nearly  twice  as  great  as  that  of  the  cane  sugar  pro- 
duction of  the  United  States  for  the  same  year. 

Farm  value  of  corn  per  bushel :  in  1897,  26.3  cents ;  in  1907, 
51.6  cents;  in  1911,  61.8  cents. 

Farm  value  of  wheat  per  bushel:  in.  1897,  80.8  cents;  in  1907, 
87.4  cents;  in  1911,  87.4  cents. 

Value  of  cotton  crop :  in  1897,  288  million  dollars ;  in  1907,  683 
millions.  (Estimate  of  New  Orleans  Cotton  Exchange.)  In  1912, 
860  millions. 

Price  of  middling  cotton  per  pound  in  the  New  York  market: 
1897,  7  cents;  in  1907,  12.1  cents;  in  1911,  13  cents. 

Price  of  medium  Ohio  fleece  wool  per  pound:  January,  1897, 
21  cents;  January,  1907,  39  cents;  January,  1911,  34  cents. 


8G         PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 

Average  price  of  corn  in  the  New  York  market:  in  January, 
1-897,  32  cents  per  pound ;  in  January,  1907,  64  cents  per  pound ; 
in  February,  1912,  78  cents  per  pound. 

Pig  iron  production  in  1897,  9,652,000  tons;  in  1907,  25,781,000 
tons;  in  1911,  23,649,547  tons. 

Coal  production:  1897,  178,776,000  tons;  in  1907,  429  million 
tons;   in   1910,   448  million  tons. 

Tin  plates  manufactured:  1897,  574,779,000  pounds;  in  1906, 
1,294,000,000  pounds;   in   1910,   1,619,005,000  pounds. 

Cotton  manufactured  by  American  mills:  in  1897,  2,792,000 
bales;  in  1907,  5,005,000  bales;  in  1911,  4,705,000  bales. 

Cotton  imported  for  use  in  manufacturing  in  1897,  51,899.000 
pounds;  in  1907,  104,792,000  pounds;  in  1912,  109,780,071   pounds. 

Wool  imported  for  use  in  manufacturing:  in  1897,  350.852.000 
pounds;  in  1907,  203,848,000  pounds;  in  1912,  193,400.713  pounds, 
showing  the  contrast  under  protection  and  free  trade. 

Raw  silk  imported  for  use  in  manufacturing :  in  1897,  7,993.000 
pounds;  in  1907,  18,744,000  pounds;  in  1912,  26.584.962  pounds. 

Crude  rubber  imported  for  use  in  manufacturing:  in  1897, 
35,574,000  pounds;  in  1907,  "6,964, 000  j55unds;  in  1912,  110,210,173 
pounds. 

Pig  tin  imported  for  use  in  manufacturing  tin  p'ates :  in  1897, 
6y2  million  dollars ;  in  1907,  38  million  dollars ;  in  1912,  46  million 
dollars. 

Value  of  all  mineral  products :  in  1897,  $647,000,000 ;  in  .1906, 
$1,903,000,000;  in  1911,  $2,004,000,000. 

Total  domestic  exports :  in  1897,  1,032  million  dollars ;  in  1907, 
1,854  millions;  in  1912,  $2,170,319,828. 

Exports  of  manufactures:  1897,  311  million  dollars;  in  1907, 
740  millions;   in   1912,  $1,021,753,918. 

Share  which  manufactures  form  of  the  exports :  1897,  .30  per 
cent;  1907,  40  per  cent;  1912,  47  per  cent. 

Imports:  1897,  $764,730,000;  in  1907,  $1,434,421,000;  1912, 
$1,653,355,000. 

Imports  of  raw  material  for  use  in  manufacturing:  1897, 
$196,159,000;  in  1907,  $477,027,000;  in  1911,  $511,362,000. 

Imports  free  of  duty:  1897,  382  million  dollars;  in  1907,  644 
millions  ;  in  1912,  881  millions. 

Imports  dutiable:  1897,  383  million  dollars;  in  1907,  790  mil- 
lions ;  in   1912,   772  millions. 

Excess  of  exports  over  imports:  1897,  $286,263,144;  in  1907. 
$446,429,653;  in  1912,  $550,967,475,  and  the  excess  of  exports  ov  r 
imports  since  the  Dingley  Act  went  into  effect,  over  7  billion 
dollars. 

Money  in  circulation:  July  1,  1897,  1,640  million  dollars;  1908, 
3,038  millions;   1912,  3,277  millions. 

Gold  and  gold  certificates  in  circulation:  July  1,  1897,  555  mil- 
lion dollars;  1908,  1,213  million  dollars;  1912,  1,550  million  dol- 
lars. 

Per  capita  money  in  circulation :  July  1,  1897,  $22.87 ;  1908, 
$34.72;   1912,  $34.26.  # 

Interest  on  public  debt:  July  1,  1897,  $34,387,000;  1908,  $21,- 
101,000;   1912,  $22,787,084. 

Per  capita  interest  charged:  July  1,  1897,  48  cents;  1908.  24 
cents;  1912,  24  cents. 

Number  of  national  banks  in  operation  in  United  States: 
October  5,  1897,  3,610;  February  14,  1908,  6,698;  June  14,  1912, 
7,372. 

Capital  stock  of  national  banks  in  operation:  October  5.  1897, 
$631,500,000;  February  14,  1908,  $905,550,000;  June  14.  1912, 
$1,033,570,675. 

Loans  and  discounts  of  national  banks  :  October  5,  1897,  2.067 
million  dollars;  February  14,  1908,  4,422  millions;  June  14,  191% 
5,954  millions. 

Deposits  in  all  banks  in  the  United  States:  1897,  5.095  million 
dollars;   1907,  13,100  millions ;   1911.   15.906  millions. 

Deposits  in  saving  Wanks:  1897,  1,983  million  dollars;  1907, 
3,495   millions;   1911,'  4.213   millions. 

Number  of  depositors  in  savings  banks:  1897,  5,201,132;  1907, 
8,588,811;    1911,  9,597,185. 


PROSPERITY  UNDER  PRESIDENT  TAPT'S  ADMINISTRATION.  87 

Bank  clearings  in  the  United  States :  1897,  54  billion  dollars ; 
1907,  155   billions;  1911,  159  billions. 

Wealth.  (There  are  no  figures  for  1897  or  1907.)  Census 
estimate  for  1900  is  88,517  million  dollars,  and  for  1904,  107,104 
millions. 

Industrial  insurance  in  force:  1897,  996  million  dollars;  in 
1906,  2,454  millions;  1911,  3,177  millions. 

Students  in  colleges,  universities,  and  schools  of  technology : 
in  1897,  86,000;  in  1906,  129,000;  in  1911,  183,572. 

Telegraph  messages  sent  by  Western  Union  Telegraph  Com- 
pany:    1897,  58,152,000;  in  1907,  77,806,000;  in  1911,  77,781.000. 

Railways  in  operation  in  the  United  States :  1897,  184,591 
miles;  1907,  228,509  miles;  1910,  249,992  miles,  an  increase  of 
21,483  miles. 

Passengers    carried:     1897,    504   millions;    1906,    815    millions; 

1910,  972  millions. 

Tons  of  freight  carried:  1897,  788  millions;  1906,  1,631  mil- 
lions; 1910,  1,850  millions. 

Railways  placed  under  receivership:  1897,  1,537  miles;  1907, 
317  miles;  1911,  2,606  miles. 

Railways  sold  under  foreclosure:  1897,  6,675  miles;  1907,  114 
miles;  1911,  1,386  miles. 

Electric  railways  in  the  United  States:  1897,  13,765  miles; 
1906,  36,212  miles;  1910,  40,088  miles. 

Average  freight  rates  on  wheat  from  St.  Louis  to  Liverpool : 
1897,   20.33   cents  per  bushel;    in   1907,    15.87    cents   per   bushel; 

1911,  13.60  cents  per  bushel. 

Tonnage  of  vessels  owned  on  the  ocean  frontage,  lakes  and 
western  rivers  of  the  United  States :  1897,  4,769,000  tons ;  1907, 
6,939,000  tons;  1911,  7,699,000  tons. 

Vessels  built  in  the  United  States:  1897,  232,233  tons;  1907, 
471,332  tons;  1911,  291,162  tons. 

Tonnage  of  vessels  from  foreign  countries  entering  the  ports 
of  the  United  States:  1897,  23,760,000  tons;  1907,  36,622,000  tons; 
1911,  42,675,000  tons. 

Tonnage  of  vessels  passing  through  the  Sault  Ste.  Marie 
Canal:  1897,  17,620,000  tons;  1907,  44,088,000  tons;  1911,  41,653,- 
000  tons. 

Telephone  subscribers  of  the  American  Telephone  and  Tele- 
graph Company  and  others  associated  with  it:  1897,  325,000; 
January  1,  1908,  3,035,000;   1910,  3,588,000. 

Number  of  railway  employees:  1897,  823,476;  1906,  1,521,355; 
1910,  1,699,420. 

Wages  paid  by  railways:  1897,  466  million  dollars;  1906,  901 
millions;   1910,  1,144  millions. 

Expenditures  for  public  schools  in  the  United  States  :  1897, 
$187,682,000;  1906,  $307,766,000;  1910  (salaries  of  teachers  only), 
$426,250,000. 

Immigrants  arrived:  1897,  230,832;  1907,  1,385,349;  1911, 
878,587. 

Original  homestead  entries  in  the  United  States :  1897,  4,452,- 
000  acres;  1907,  14,755,000  acres;  1911,  17,639,000  acres. 

Public  lands  sold  for  cash :  1897,  7,754,000  acres ;  1907,  20,867,- 
000  acres;  1911,  19,211,000  acres. 


AGRICULTURAL.   PROSPERITY. 

Agricultural    Prosperity    Under     Republican     Administration, 
Depression  Under  Democratic   Rule, 

The  farmers  of  the  country  create  most  of  its  wealth  and, 
during  the  last  twenty-two  years,  sent  abroad  61  per  cent  of  our 
exports  in  addition  to  producing  much  of  the  material  from 
which  manufactures  are  made  that  are  used  at  home  and  abroad. 
The  Republican  administration  has  greatly  developed  agricul- 
tural investigation  in  the  last  fifteen  years,  until  scientific  in- 
quiry is  being  made  in  all  our  States  and  Territories  and  in  the 
isles  of  the  sea  under  our  flag,  to  the  end  that  we  may  produce 


88         PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 

the  necessities  of  life  for  ourselves  and  those  for  whom  we 
are  responsible.  The  power  of  the  man  and  the  acre  to  produce 
is  being  increased  all  over  the  land;  new  grains,  grasses, 
fruits,  fibers,  and  vegetables  are  being  imported  from  foreign 
countries  into  continental  United  States  and  into  our  islands 
in  order  to  diversify  crops  and  bring  into  productiveness  sec- 
tions of  our  country  that  have  heretofore  been  barren.  The 
weather,  the  animals,  the  plants,  the  forests,  the  soils,  our  roads, 
our  foods,  our  insect  friends  and  enemies  are  being  studied 
from  the  farmer's  standpoint  by  over  2,000  scientists  in  the 
Department  of  Agriculture,  which  has  grown  in  helpfulness 
every  day  since  1896. 

The  farm  value  of  the  wheat,  corn,  and  oat  crops  in  1911  was 
nearly  two  and  two-thirds  times  that  of  1896,  the  last  year  of 
the  Cleveland  administration.  This  is  rather  a  startling  state- 
ment, but  it  is  borne  out  by  the  Yearbook  published  by  the 
Department  of  Agriculture,  and  made  up  from  official  figures 
which  have  no  partisan  bias. 

For  the  year  i896  the  farm  value  of  corn  was  $491,000,000; 
that  of  the  wheat  crop,  $311,000,000;  and  that  of  the  oat  crop, 
$132,000,000;  the  total  farm  value  of  the  three  crops  for  that 
year  being  $934,000,000. 

The  farm  value  of  the  corn  crop  in  1900  was  $751,000,000; 
that  of  the  wheat  crop,  $323,500.000 ;  and  that  of  the  oat  crop, 
$208,700,000,  making  the  total  farm  value  of  the  three  crops 
in  1900  $1,283,000,000,  or  $349,000,000  more  than  the  farm  valutf 
of  the  same  crops  in  1896. 

In  1911  the  farm  value  of  the  corn  crop  was  $1,565,258,000; 
that  of  the  wheat  crop,  $543,063,000 ;  and  that  of  the  oat  crop, 
$414,663,000;  a  total  farm  value  of  the  three  crops  in  1911  of 
$2,522,984,000  or  $1,239,580,000  more  than  thv.  farm  value  of  the 
same  crops  in  1900,  and  $1,588,904,000  more  than  their  farm 
value  in  1896. 

Increase  In  Farm  Value*. 

lhis  increase  in  farm  value  under  Republican  administra- 
tions is  not  accidental.  It  is  a  matter  of  history  that  rural 
prosperity  and  Republican  rule  are  coincident;  it  is  equally  a 
matter  of  record  that  agricultural  depression,  mortgage  fore- 
closures, and  low  prices  for  farm  products  accompany  Dem- 
ocratic administration  of  national  affairs.  The  prosperity  of 
the  farmer  depends  upon  the  prosperity  of  all  other  industrial 
elements  of  our  population.  When  the  industrial  classes  are 
employed  at  American  wages  their  consumption  of  farm  pro- 
ducts is  on  a  liberal  scale  and  they  are  able  and  willing  to 
pay  good  prices  for  the  necessities  and  luxuries  of  life.  Under 
such  conditions  there  is  a  good  market  for  all  the  farmer  has 
to  sell.  When  the  reverse  is  true  and  the  workmen  are  idle  or 
working  scant  time  at  cut  wages,  they  are  forced  to  practice 
pinching  economy  and  the  farmer  necessarily  loses  part  of  his 
market.  The  American  farmer  is  prosperous  when  well  paid 
workmen  are  carrying  well-filled  dinner  pails,  a  condition  which 
has  accompanied  Republican  supremacy  since  the  birth  of  the 
party. 

The  records  for  the  last  seven  administrations,  five  Republican 
and  two  Democratic,  show  that  the  farmers  received  more  for 
their  crops  under  Republican  administrations  than  under  Demo- 
cratic  administrations.  .  ,. ,.,.,  . 

The  farm  value  of  the  corn  crops  for  the  four  years  of 
Cleveland's  first  administration,  from  1885  to  1888,  aggregated 
$2,570,000,000.  »I»fl   vUinoonsa  i-»i»u  J   ho! «««»"* «i*>Cl 

In  the  four  years  of  the  Harrison  administration  which 
followed,  the  Farm  value  of  the  corn  crop  kggregatejd  $2,831,000.- 
000,  an  increase  in  value  of  more  than  $260,000,000  over  that  of 
this  crop  during  the  Cleveland   administ  ration. 

For  the  next  four  years,  while  Mr.  Cleveland  was  President 
and  Democratic  policies  were  in  force,  the  farm  value  of  the 
corn  crop  aggregated  $2,182,000,000,  a  decrease  of  $649,000,000 
from  that  during  the   Harrison   administration. 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION.  89 

Then  came  the  Republican  administration  of  William  Mc- 
Kinley and  for  the  four  years  of  that  administration  the  farm 
value  of  the  corn  crop  aggregated  $2,434,000,000,  or  an  increase 
of  $252,000,000  over  that  of  the  last  Democratic  administration  ; 
in  the  succeeding  four  years,  1901-4,  it  was  $3,979,000,000,  or 
nearly  double  the  value  of  the  crop  of  the  last  Democratic  ad- 
ministration ;  in  1905-8  the  corn  crop  was  valued  at  $5,236,000,000, 
while  in  the  first  three  years  of  the  present  administration  it  was 
$4,427,000,000,  or,  in  three  years,  $2,245,000,000  more  than  in  the 
four  years  of  the  second  Cleveland  administration. 

The  value  of  the  live  stock  on  the  farms  of  the  country, 
which  was  reported  by  the  Agricultural  Department,  January 
1,  1897,  as  $1,655,000,000,  was  reported  at  $5,008,000,000  on  Janu- 
ary 1,  1912,  an  increase  of  $3,353,000,000  in  fifteen  years. 

With  the  increased  activity,  increased  earnings,  and  increased 
consumption,  the  farmer  has  received  greatly  increased  prices 
for  his  productions. 

The  Agricultural  Department  reports  an  increase  of  $348,000,- 
000  in  the  farm  value  of  the  cereals  alone  in  1900,  as  compared 
with  1896,  and  a  further  increase  of  $1,373,000,000  in  1911,  as 
compared  with  1900,  making  a  total  increase  of  $1,721,000,000, 
these  figures  representing  the  actual  value  upon  the  farm  before 
leaving  the  hands  of  the  producer,  while  other  articles  of  farm 
production  show  an  equal  advance  in  value. 

The  exportation  of  agricultural  products  increased  from  $574,- 
000,000  in  the  fiscal  year  ending  June  30,  1896,  to  $845,000,000 
in  the  fiscal  year  1900,  and  to  $848,000,000  in  the  fiscal  year  1911, 
a  total  increase  of  $274,000,000  in  me  mere  surplus  remaining 
after  supplying  the  great  and  rapidly  expanding  home  market. 

Wheat  and   Oats. 

The  same  law  of  fluctuation  according  to  political  policies 
in  administration  held  gooa  as  to  wheat  and  oats.  The  farm 
value  of  the  wheat  crop  for  the  four  years  of  the  first  Cleveland 
administration  aggregated  $1,285,000,000,  and  for  the  next  four 
years,  including  the  Harrison  administration,  the  farm  value 
of  the  wheat  crop  aggregated  $1,513,000,000,  an  increase  of 
$228,000,000  in  the  farm  value  of  the  wheat  over  that  for  the 
preceding  Democratic  administration. 

For  the  next  four  years,  under  the  second  Cleveland  admin- 
istration, the  farm  value  of  the  wheat  crop  aggregated  $988,000,- 
000,  a  shrinkage  of  $525,000,000  in  the  value  of  the  wheat  crop 
from  the  preceding  four  years  under  Republican  administration. 

Again  came  a  change  of  policy  in  government,  and  during  the 
first  four  years  of  the  McKinley  administration  the  wheat  crop 
took  another  advance  in  value.  For  these  four  years  of  the 
McKinley  administration  the  farm  value  of  the  wheat  crop  ag- 
gregated $1,464,000,000,  an  increase  in  value  amounting  to  nearly 
$500,000,000. 

In  the  next  four  years,  or  during  the  McKinley-Roosevelt 
administration,  the  wheat  crop  was  worth  $1,843,000,000  to  the 
farmers,  or  $855,000,000  more  than  during  the  second  Cleveland 
administration.  For  the  succeeding  four  years  of  the  Repub- 
lican administration  ending  March  4,  1909,  the  farm  value  of  the 
wheat  crop  amounted  to  $2,180,000,000,  while  during  the  first 
three  years  of  the  present  administration  the  wheat  crops 
were  worth  $1,778,000,000,  or  $790,000,000  more  than  in  the  four 
years  of  the  second  Cleveland  administration. 

The  farm  value  of  the  oat  crop  in  the  four  years  of  the  first 
Cleveland  administration  aggregated  ^762,000,000 ;  for  the  next 
four  years,  under  the  Harrison  administration,  the  farm  value  of 
the  oat  crop  increased  to  $835,000,000;  for  the  next  four  years, 
under  Cleveland,  this  crop  decreased  in  value  to  $699,000,000 ; 
for  the  next  four  years,  under  the  McKinley  administration,  it 
increased  to  $741,000,000 ;  during  the  four  years  of  the  McKinley- 
Roosevelt  administration  it  was  $1,145,000,  and  in  1905-8  the 
value  reached  $1,299,000,000. 

During  the  last  three  years  of  the  Republican  administration 
its  aggregate  value  has  been  $1,228,000,000,  or  $529,000,000  more 
in  three  years  than  during  the  preceding  four  years  of  the  second 
Cleveland  administration. 


90 


PROSPERITY  UNDER  PRESIDENT  TAF'FS  ADMINISTRATION. 


The  farm  value  of  the  hay  crop  in  1896  was  $388,000,000;  in 
1900  it  was  $445,500,000;  and  in  1911  it  was  $695,000,000  (a  pre- 
liminary estimate). 

The  farm  value  of  the  potato  crop  in  1896  was  $72,000,000 ; 
in  1900  it  was  $90,800,000 ;  and  in  1911  it  was  $389,000,000. 

Farm  Animals, 

During"  the  fifteen  years  of  Republican  administration,  the 
farm  animals  of  the  country  have  increased  in  value  from 
$1,655,000,000  on  January  1,  1897,  to  $5,008,000,000  on  January  1, 
1912. 

The  number  of  horses  has  increased  ^rom  14,365,000  to  20,508,- 
000,  and  their  value  from  $453,000,000  to  $2,173,000,000. 

The  number  of  mules  has  increased  from  2,216,000  to  4,362,000, 
and  their  value  from  $92,000,000  to  $526,000,000. 

The  number  of  milch  cows  has  increased  from  15,942.000  to 
20,699,000,  and  their  value  from  $369,000,000  to  $815,000,000. 

The  number  of  cattle  other  than  milch  cows  has  increased 
from  30,508,000  to  37,260,000,  and  their  value  from  $508,000,000 
to  $790,000,000. 

The  number  of  sheep  has  increased  from  36,819,000  to  52,362,- 
000,  and  their  value  from  $67,000,000  to  $181,000,000. 

The  number  of  swine  has  increased  from  40,600,000  to  65,410,- 
000,  and  their  value  from  $166,000,000  to  $523,000,000. 

It  will  readily  be  perceived  from  the  foregoing  figures  that 
the  increase  in  total  value  is  far  more  than  proportional  to  the 
increase  in  number.  The  total  value  ot  sheep,  for  example,  is 
more  than  thrice ;  that  of  mules,  five  and  two-thirds  times ;  and 
that  of  horses  more  than  four  and  four-fifths  times  as  great  as 
it  was  when  the  Republicans  took  hold  of  the  administration  of 
the  country  fifteen  years  ago. 

The  "man  with  the  hoe"  has  only  to  look  at  the  record  to 
see  which  way  points  to  prosperity. 


Value   of   Farm   Animals   under   Harrison,   Cleveland,   McKin- 
ley, Roosevelt,  and  Taft. 

After  lands  and  improvements,  the  greatest  item  of  wealth 
of  the  American  farmer  is  his  live  stock,  and  the  value  of  such 
farm  stock. is  a  perfect  barometer  of  his  financial  condition. 
Practically  the  highest  point  ever  reached  up  to  that  time  was 
at  the  close  of  1892,  the  last  year  of  the  Harrison  administration, 
when  the  valuation  was  $2,462,000,000,  the  country  being  pros- 
perous, labor  fully  employed,  and  wages  good.  The  lowest  point 
reached  in  the  last  27  years  was  at  the  close  of  1896,  when  mills 
were  closed,  fires  drawn,  labor  idle,  capital  in  hiding,  and  busi- 
ness confidence  destroyed  by  four  years  of  Democratic  adminis- 
tration. In  four  years  the  shrinkage  of  this  form  of  farm  wealth 
had  amounted  to  33  per  cent,  making  $807,000,000  the  price  which 
the  owners  of  live  stock  paid  for  the  Democratic  experiment  of 
1892.  In  the  years  of  industrial  activity  which  followed  the  elec- 
tion of  McKinley,  the  value  of  live  stock  has  kept  pace  upward 
with  the  increased  earning  and  spending  capacity  of  American 
labor,  and  on  January  1,  1900,  it  had  advanced  to  $2,288,000,000, 
or  a  rise  of  $633,000,000,  or  32  per  cent,  from  the  depths  of  de- 
pression. The  figures  in  detail,  as  shown  in  the  official  reports 
of  the  Department  of  Agriculture,  are  as  follows : 

Value  of  live  stock. 


Jan.  1,  1892, 
Harrison. 

Jan.  1,  1897, 
Cleveland. 

Jan.  1,  1900, 
McKinley. 

Jan.  1,  1908, 
Roosevelt. 

Jan.  1,  1912, 
Taft. 

Horses 

Mules 

Cows 

Cattle 

Sheep 

Hogs 

$1,007,593,636 
174,882,070 
351,378,132 
570,749,155 
116,121,290 
241,031,415 

$452,649,396 
92,302,000 
869,239,998 

507,929,421 

67,020,942 

166,272,770 

$603,969,042 
111,717,092 
514,812,106 
689,487,260 
122,665,913 
245,725,000 

$1,867,530,000 
416,939,000 
<i.">0,057,000 
845,938,000 
211,736,000 
339,030,000 

$2,172,573,000 
525,600,000 
815,414,000 
790,064,000 
181,170,000 
523,328,000 

Total 

2,461,755,698 

1,655,414,612 

2,288,375,413 

4,331,230,000 

5,008.149,000 

Pri 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 
EXCHANGE   VALUE   OF   FARM  PRODUCTS. 


91 


rices   of  Raw   Materials    Compared   with   Prices   of   Manufac- 
tured Articles,    189G  and   1011. 

The  figures  published  in  Bulletin  No.  99  of  the  United  States 
Bureau  of  Labor  and  which  are  discussed  on  another  page,  show 
that  while  there  has  been  an  increase  in  the  prices  of  nearly  all 
commodities  in  recent  years,  the  increase  has  been  greatest  in 
the  prices  of  farm  products.  It  is  interesting  in  this  connection 
to  determine  in  what  degree  the  farmer  has  been  benefited  by 
this  rise.  The  following  figures,  which  were  compiled  from  the 
Bureau  of  Labor  price  statistics  show  the  percent  of  advance 
in  1911  as  compared  with  1896,  the  last  year  of  Democratic 
administration,  the  commodities  being  grouped  as  in  the  original 
source.  The  comparisons  are  between  wholesale  prices,  as  they 
are  more  sensitive  than  retail  prices  and  more  quickly  reflect 
changes  in  conditions : 

Comparative  advance  in  the  price  of  farm  products  and  other 
groups  of  commodities,  1911,  compared  with  1896. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Group. 

Advance  in 
prices. 

Increase  in 

purchasing 

power  of  farm 

products. 

Farm  products  

Food    

Per  cent. 
106.9 
56.7 
31.0 
17.4 
27.4 
62.6 
29.9 
18.2 
43.5 
43.0 

Per  cent. 

~32?0 

Cloths  and  clothing- 

58.0 

Fuel  and  light 

76.3 

62.4 

Lumber  and  building  materials 

27.2 

Drugs  and  chemicals..    

59.2 

75.0 

44.1 

All  commodities 

44.7 

Comparing  the  prices  in  1911  with  those  in  1896,  farm  products 
show  an  advance  of  nearly  107  per  cent ;  that  is,  for  every  $100 
received  from  the  sale  of  farm  products  in  1896  the  farmer  re- 
ceived $206.90  for  the  same  quantity  in  1911.  Food,  etc.,  ad- 
vanced 56.7  per  cent,  or  about  half  as  much  as  farm  products ; 
cloths  and  clothing,  31.0  per  cent;  fuel  and  lighting,  17.4  per 
cent ;  metals  and  implements,  27.4  per  cent ;  lumber  and  building 
materials,  62.6  per  cent ;  drugs  and  chemicals,  29.9  per  cent ; 
house  furnishing  goods,  18.2  per  cent ;  miscellaneous  articles, 
43.5  per  cent. 

The  real  advantage  to  the  farmer,  however,  of  the  increase 
in  the  prices  of  commodities  is  shown  by  a  comparison  of  what 
a  given  quantity  of  farm  products  would  purchase  in  other  com- 
modities in  1911  as  compared  with  1896.  According  to  the  above 
table  the  same  quantity  of  farm  products  would  purchase 
in  1911,  32  per  cent  more  food  and  food  products  than  in 
1896.     It  would  purchase  58  per  cent  more  cloths  and  clothing ; 

76.3  more  of  the  articles  included  in  the  fuel  and  light  group ; 

62.4  per  cent  more  metals  and  implements ;  27.2  per  cent  more 
lumber  and  building  materials ;  59.2  more  drugs  and  chemicals, 
and  75  per  cent  more  house  furnishing  goods. 

This  shows  that  no  one  has  been  benefited  by  the  advance  in 
prices  as  much  as  the  farmer;  that  in  1911  the  prices  of  farm 
products,  taken  collectively,  were  106.9  per  cent,  or  more  than 
double  the  farm  prices  in  1896,  and  that  when  the  advance  in 
prices  of  other  articles  is  considered  the  purchasing  power  of 
farm  products  in  1911  when  compared  with  the  prices  of  other 
specified  groups  of  articles  was  from  27  to  76  per  cent  greater 
than  in  1896.     < 

The  above  table  shows  the  advance  in  prices  and  in  the  pur- 
chasing power  of  farm  products  by  large  groups.  In  the  tables 
which  follow  a  similar  comparison  is  made  for  certain  indi- 
vidual articles  of  production  and  consumption  by  the  farmer. 
The  first  table  shows  the  comparative  advance  in  prices  of  cer- 
tain related  commodities  in  1911,  compared  with  1896: 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 


Comparative  advance  in  prices  of  certain  related  commodities, 
1911  compared  with  /<s.%\ 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Wholesale 

pric<  in 

1896. 

Wholesale 

price  in 
1911 . 

Per  cent 

increase. 

Dollars. 

Dollars. 

4.60 

7.23 

57.2 

4.27 

6.73 

57  6 

6.98 

9.82 

40.7 

3.36 

6.75 

100.9 

3.56 

6.73 

39.0 

9.43 

13.98 

4S.3 

25.80 

59.00 

128.7 

81.29 

129.33 

59.1 

78.54 

129.13 

64.4 

64.13 

98.44 

53.5 

3.80 

5.08 

33.7 

3.?2 

3.98 

9.9 

2.82 

4.00 

41.8 

3.19 

4.13 

29.5 

7.92 

13.04 

61.6 

12.81 

20.42 

59.4 

6.50 

10.00 

53.8 

5.50 

7.63 

38.7 

3.09 

3.92 

26.9 

9.88 

13.77 

39.4 

5.73 

8.23 

43.6 

4.72 

6.81 

44.3 

2.58 

3.49 

35.3 

29.25 

30.64 

4.8 

6.96 

8.65 

24.3 

10.19 

13.33 

30.8 

39.40 

64.72 

64.3 

31.86 

44.90 

40.9 

75.00 

100.00 

33.3 

32.17 

43.00 

33.7 

113.75 

148.88 

30.9 

8.11 

14.77 

82.1 

18.81 

23.75 

26.3 

29.25 

38.83 

b2.8 

Cattle:     Steers,  choice  to  extra.. _per  100  pounds.. 

Cattle:     Steers,  good  to  choice do 

Fresh  beef,  native  sides  (N.  Y.  market)  do 

Hogs:     Heavy   do 

Hogs:     Light  do 

Hams,   smoked  do 

Corn:     Cash    per  100  bushels.. 

Corn  meal,  fine  white per  100  pounds.. 

Corn  meal,  fine  yellow do 

Wheat:     Cash    per  100  bushels.. 

Flour,  wheat,  spring  patents per  barrel.. 

Flour,  wheat,  winter  straights do._ 

Bread,  loaf,  homemade  (New  York 

market)    per  100  pounds.. 

Bread,  loaf,  Vienna  (New  York  market)do 

Cotton,   upland  middling do 

Bags,   2  bushel,   Amoskeag per  100  bags.. 

Cotton  flannels,  2%  yards  to  the 

pound per  100  yards.. 

Cotton  flannels,  3%  yards  to  the  pound-do 

Thread,  6-cord,   200  yard  spools, 

J.  &  P.  Coats per  100  spools.. 

Denims,  Amoskeag  per  100  yards.. 

Drillings,   brown  Pepperell do 

Ginghams,  Amoskeag do 

Print  cloths,  64  by  64 do 

Sheetings,  bleached,  10-4,  Wamsutta, 

S.  T do. 

Shirtings,  bleached,  4-4,   Fruit  of  the 

Loom do 

Tickings,  Amoskeag  A.  C.  A do 

Wool,  Ohio,  fine  fleece  (X  and  XX  grade), 

scoured   per  100  pounds.. 

Wool,  Ohio,  medium  fleece  (*4  and  % 

grade) ,  scoured do 

Blankets  (all  wool)  5  pounds  to  the  pair.do 

Flannels,   white,    4-4,   Ballard  Vale 

No.  3 per  100  yards.. 

Suitings,   indigo  blue,   all  Wool,   14 

ounce,   Middlesex  do ._ 

Hides:     Green,   salted,   packers'  native 

steers  per  100  pounds- 
Leather,  sole,  hemlock do 

Leather,   sole,   oak do 


It  will  be  observed  that  in  almost  every  case  the  rise  in  price 
of  the  raw  farm  product  has  been  very  much  greater  than  that 
of  the  prepared  or  manufactured  article.  Thus  while  the  prices 
of  cattle  on  the  hoof  increased  about  57  per  cent,  the  price  of 
fresh  beef  increased  41  per  cent ;  while  the  price  of  hogs  in- 
creased from  89  to  100  per  cent,  the  price  of  smoked  hams  in- 
creased 48  per  cent;  while  the  price  of  corn  increased  129  per 
cent,  the  price  of  eornmeal  increased  59  to  64  per  cent  ;  while 
the  price  of  wheat  increased  54  per  cent,  the  price  of  wheat 
flour  increased  10  to  34  per  cent,  and  the  price  of  bread  29  to 
42  per  cent;  while  the  price  of  cotton  increased  65  per  cent, 
the  prices  of  cotton  thread  and  fabrics  increased  5  to  59  per- 
cent: while  the  price  of  wool  increased  41  to  64  per  cent,  the 
prices  of  wool  fabrics  increased  31  to  34  per  cent;  while  the 
price  of  hides  increased  82  per  cent,  the  price  of  sole  leather 
increased  26  to  33  per  cent. 


Market     Value     of    Farm     Products     ia     1S5M5    and     1911,    when 
Measured    hy    the    Wholesale    Prices    in    Staple    Articles. 

The  real  value  of  the  farm  product  to  the  farmer  is  not  so 
much  its  money  value,  as  its  exchange  value  in  the  articles  which 
he  must  purchase.  No  official  retail  prices  other  than  those  of 
certain  articles  of  food  have  been  published  in  recent  years, 
but  the  United  States  Bureau  of  Labor  in  its  Bulletin  for  March, 
1912  (No.  99),  published  the  wholesale  prices  of  the  staple  arti- 
cles in  general  use.  From  this  publication  the  following  tables 
have    been    prepared    showing   the   value    of    corn,    wheat,    oats, 


PROSPERITY  UNDER  PRESIDENT  TAPT'S  ADMINISTRATION. 


93 


cattle,  hogs,  butter,  etc.,  in  1896  and  1911  when  measured  by 
the  value  of  other  staple  articles  which  the  farmer  must  buy. 
While  these  figures  do  not  represent  tne  actual  purchasing  power 
(as  all  the  prices  are  wholesale),  the  figures  for  the  two  years 
1896  and  1911  bear  practically  the  same  relation  to  each  other 
that  retail  prices  would  do.  , 

An  examination  of  the  first  table  will  show  that  the  value 
of  ten  bushels  of  corn  at  current  wholesale  prices  would  have 
purchased  at  wholesale  131  pounds  of  galvanized  wire  in  1896, 
and  270  6/iO  pounds  in  1911 ;  ten  bushels  of  corn  in  1896  would 
have  purchased  3%  pairs  of  all-wool  blankets  (five  pounds  to 
the  pair)  and  in  1911  ten  bushels  would  have  purchased  six  pairs ; 
ten  bushels  of  corn  in  1896  would  have  purchased  one  pair  of 
men's  vici  kid  shoes,  with  23  cents  over,  in  1911  two  pairs  of 
the  same  grade  of  shoes,  with  67  cents  over.  In  1896  ten  bushels 
of  corn  would  have  purchased  510  common  domestic  building 
brick,  in  1911  1,002  brick,  or  about  twice  the  number.  In  1896 
ten  bushels  of  corn  were  equal  in  value  to  49  9/10  pounds  of 
carbonate  of  lead,  while  in  1911  they  were  equal  to  83%  pounds; 
in  1896  equal  to  6  3/10  yards  of  ingrain  carpet,  and  in  1911  to 
11  2/10  yards ;  in  1896  equal  to  1  3/10  barrels  of  cement,  and  in 
1911  to  four  barrels;  in  1896  equal  to  7/10  ton  of  anthracite  or 
one  ton  of  bituminous  coal,  and  in  1911  to  1  2/10  tons  of 
anthracite  or  two  tons  of  bituminous  coal ;  in  1896  equal  to 
20  9/10  pounds  of  Rio  coffee,  and  in  1911  to  44  pounds ;  in  1896 
equal  to  46  9/10  yards  of  cotton  flannel,  and  in  1911  to  77  3/10 
yards,  add  so  on  down  the  list  of  articles.  These  values  are 
based   on   the   average   wholesale   prices. 

As  this  table  shows  the  comparative  value  of  ten  bushels  of 
corn  measured  in  specified  articles  of  domestic  requirement,  so 
the  other  tables  show  the  comparative  value,  eacxi,  of  given 
quantities  of  wheat,  oats,  rye,  ^ay,  cotton,  cattle,  hogs,  potatoes, 
butter  and  eggs,  as  measured  in  the  same  articles.  An  examina- 
tion of  these  tables  will  show  a  startling  increase,  since  the  last 
Democratic  administration,  in  the  value  of  farm  products  when 
measured   by  their  purchasing  power  of  other  commodities. 


Value  of  ten  bushels  of  corn  in  1896  and  1911  when  measured 
by  the  wholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:   galvanized pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs— 

Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt..pairs__ 

Boots  and  shoes:  women's  solid  grain  shoes pairs.. 

Brick:   common  domestic number.. 

Carbonate  of  lead:  American,  in  oil pounds- 
Carpets:   ingrain,  2-ply,  Lowell yards.. 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons— 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons- 
Coffee:  Bio  No.  7 ...pounds— 

Cotton  flannels:  3%  yards  to  the  pound yards— 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools.. 

Denims:   Amoskeag   yards.. 

Drillings:  brown  Pepperell yards.. 

Ginghams:   Amoskeag  yards.. 

Glassware:  tumblers,  y3  pint,  common —dozen- 
Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,   fence  and  common pounds. 

Petroleum:  refined,  150°  fire  test,  water  white gallons 

Print  cloths:    64  x  64 yards 

Quinine:   American  ounces. 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings:  brown,  4-4,  Indian  Head yards— 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards. 

Sugar:    granulated   pounds— 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards 

Tea:   Formosa,  fine pounds.  _ 

Tickings:  Amoskeag  A.   C.  A yards. 

Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards. 


1911. 


131.5 

3.y2 

(a) 

(c) 

510 

49.9 

6.3 

1.3 

0.7 

1.0 
20.9 
46.9 


26.1 
45.0 
54.7 
14.% 
95.1 
88.2 
24.8 
100.0 
10.7 
8.8 
41.5 
37.1 
56.9 
2.3 
10.0 
25.3 


20. 


270.6 

6 
(b) 
(d) 
1,002 
83.5 
11.2 
4.0 
1.2 

2.0 
44.0 
77.3 

150.5 
42.9 
71.7 
86.6 
53.  y2 

345.4 

327.0 
63.8 

169.3 
42.1 
19.3 
67.2 
68.2 

110.6 

4.0 

24.3 

44.3 

27.1 


a  1  pair  and  33  cents  over, 
b  2  pairs  and  67  cents  over. 


c  3  pairs  and  3  cents  over, 
d  5  pairs  and  82  cents  over. 


94 


PROSPERITY  UNDER  PRESIDENT  TAFTS  ADMINISTRATION. 


Value  of  ten  bushels  of  wheat  in  1896  and  1911  when  measured 

by  the  wholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:   galvanized pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs- 
Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt— pairs- 
Boots  and  shoes:  women's  solid  grain  shoes pairs- 
Brick:   common  domestic number— 

Carbonate  of  lead:  American,  in  oil pounds— 

Carpets:   ingrain,  2-ply,  Lowell yards.. 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons— 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons— 

Coffee:   Rio  No.  7 pounds.. 

Cotton  flannels:  3%  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.  &  P.  Coats 200-yard  spools.. 

Denims:   Amoskeag  yards.. 

Drillings:  brown  Pepperell yards— 

Ginghams:   Amoskeag  yards.. 

Glassware:  tumblers,  V3  pint,  common dozen.. 

Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8 -penny,   fence  and  common pounds.. 

Petroleum:  renned,  150'  Are  test,  water  white gallons- 
Print  cloths:    64  x  64 yards.. 

Quinine:  American  ounces- 
Sheetings:  bleached,  10-4,  Wamsutta  S.  T __ yards- 
Sheetings:  brown,  4-4,  Indian  Head yards— 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards- 
Sugar:   granulated   pounds— 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards- 
Tea:  Formosa,  fine ,. pounds- 
Tickings:  Amoskeag  A.  C.  A —yards- 
Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards.. 


326.8 

451.6 

8.% 

10 

(a) 

(b) 

(c) 

(d) 

1,267 

1,671 

124.0 

139.2 

15.7 

18.6 

3.2 

6.7 

1.7 

2.0 

2.4 

3.3 

52.0 

78.6 

116.6 

129.0 

207.7 

251.1 

64.9 

71.5 

111.9 

119.6 

135.9 

144.6 

35.% 

89.% 

236.4 

576.2 

219.3 

545.6 

61.7 

106.4 

248.5 

282.4 

26.7 

70.3 

21.9 

32.1 

103.1 

112.0 

92.1 

113.8 

141.5 

184.6 

5.6 

6.6 

24.8 

40.7 

62.9 

73.8 

50.5 


1911. 


45.1 


a  2  pairs  and  $1.91  over, 
b  3  pairs  and  $1.99  over. 


c  7  pairs  and  46  cents  over, 
d  9  pairs  and  69  cents  over. 


Value  of  ten  bushels  of  oats  in  1896  and  1911  when  measured 

by  the  wholesale  prices  of  the  folloiving  staple  articles. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:   galvanized ... pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs- 
Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt— pairs.. 
Boots  and  shoes:  women's  solid  grain  shoes.. pairs- 
Brick:  common  domestic number- 
Carbonate  of  lead:  American,  in  oil pounds- 
Carpets:   ingrain,  2-ply,  Lowell yards.. 

Oement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons... 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons.. 

Coffee:  Rio  No.  7 pounds- 
Cotton  flannels:  3%  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools.. 

Denims:  Amoskeag  yards- 
Drillings:  brown  Pepperell yards— 

Ginghams:   Amoskeag  yards.. 

Glassware:  tumblers,  %  pint,  common dozen- 
Nails:  cut,  8-penny,  fence  and  common pounds— 

Nails:  wire,  8-penny,  fence  and  common pounds- 
Petroleum:  renned,  150°  fire  test,  water  white gallons- 
Print  cloths:  64  x  64 yards- 
Quinine:   American  ounces.. 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings:  brown,  4-4,  Indian  Head yards— 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards- 
Sugar:    granulated  — pounds— 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards.. 

Tea:   Formosa,  fine ..pounds  — 

Tickings:  Amoskeag  A.  C.  A yards- 
Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards.. 


1896. 


91.8 

176.6 

2.% 

4 

(a) 

(b) 

(c) 

(d) 

356 

654 

0.5 

0.8 

0.7 

1.3 

14.6 

28.7 

34.8 

54.5 

4.4 

7.3 

0.9 

2.6 

32.7 

50.5 

58.3 

98.2 

18.2 

28.0 

31.4 

46.8 

a*.  2 

56.5 

10 

35 

66.4 

225.4 

61.6 

213.4 

17.3 

41.6 

69.8 

110.5 

7.5 

27.5 

6.2 

12.6 

29.0 

43.8 

25.9 

44.5 

39.7 

72.2 

1.6 

2.6 

7.0 

15.9 

17.7 

28.9 

14.2 


17.7 


a  Lacks  45  cents  of  price  of  1  pair, 
b  1  pair  and  $1.23  over. 


c  2  pairs  and  10  cents  over, 
d  6  pairs  and  SO  cents  over. 


. 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 


95 


Value  of  ten  bushels  of  rye  (No.  2  cash)  in  1896  and  1911  when 
measured  by  the  wholesale  prices  of  the  following  staple  arti- 
cles. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:   galvanized pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs— 

Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt__pairs 

Boots  and  shoes:  women's  solid  grain  shoes pairs- 
Brick:  common  domestic number— 

Carbonate  of  lead:  American,  in  oil pounds— 

Carpets:   ingrain,  2-ply,  Lowell yards— 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons.. 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons- 
Coffee:  Rio  No.  7 -.pounds.. 

Cotton  flannels:  sy2  yards  to  the  pound yards— 

Cotton  thread:  6-cord,  200-yard  spools, 

J.  &  P.  Coats 200-yard  spools- 
Denims:   Amoskeag  yards.. 

Drillings:  brown  Pepperell yards- 
Ginghams:   Amoskeag  yards.. 

Glassware:  tumblers,  %  pint,  common dozen- 
Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,   fence  and  common pcurids— 

Petroleum:  refined,  150°  fire  test,  water  white gallons- 
Print  cloths:    64  x64 yards— 

Quinine:   American  ounces— 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards— 

Sheetings:  brown,  4-4,  Indian  Head yards— 

Shirtings:  bleached,  4-i,  Fruit  of  the  Loom yards- 
Sugar:    granulated  pounds— 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards.. 

Tea:  Formosa,  fine pounds- 
Tickings:  Amoskeag  A.  C.  A yards- 
Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards— 


1896. 


179.2 

413.1 

4.% 

9 

(a) 

(b) 

(c) 

(d) 

695 

1,531 

0.9 

1.9 

1.3 

3.0 

28.5 

67.2 

68.0 

127.5 

8.6 

17.1 

1.8 

6.2 

63.9 

118.2 

113.9 

230.0 

35.6 

65.5 

61.4 

109.6 

74.5 

132.4 

19.y2 

82 

129.7 

527.8 

120.2 

499.7 

33.8 

97.5 

136.3 

258.7 

14.6 

64.4 

12.0 

29.4 

56.5 

102.6 

50.5 

104.2 

77.6 

169.0 

3.1 

6.1 

13.6 

37.2 

84.5 

67.6 

27.7 


1911. 


41.3 


a  1  pair  and  $1.27  over, 
b  3  pairs  and  $1.17  over. 


c  4  pairs  and  12  cents  over, 
d  8  pairs  and  88  cents  over. 


Value  of  one  ton  of  hay  in  1896  and  1911  when  measured  by 
the  wholesale  prices  of  the  following  staple  articles. 
United  States  Bureau  of  Labor.] 


[Compiled  from  Bulletin  No. 


Articles. 


Barb  wire:   galvanized pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs- 
Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt— pairs— 

Boots  and  shoes:  women's  solid  grain  shoes pairs.. 

Brick:  common  domestic number- 
Carbonate  of  lead:  American,  in  oil pounds- 
Carpets:  ingrain,  2-ply,  Lowell yards.. 

Cement:  Portland,  domestic. barrels.. 

Coal:  anthracite,  stove tons.. 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons— 

Coffee:  Rio  No.  7 pounds.. 

Cotton  flannels:  SV2  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools.. 

Denims:   Amoskeag  yards.. 

Drillings:  brown  Pepperell yards.. 

Ginghams:   Amoskeag  yarctg— 

Glassware:  tumblers,  %  pint,  common dozen- 
Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,   fence  and  common pounds.. 

Petroleum:  refined,  150°  fire  test,  water  white gallons- 
Print  cloths:    64  x  64 yards.. 

Quinine:  American  ounces.. 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings:  brown,  4-4,  Indian  Head yards.. 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards.. 

Sugar:    granulated  pounds.. 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards.. 

Tea:   Formosa,  fine pounds- _ 

Tickings:  Amoskeag  A.  C.  A yards- 
Women's  dress  goods:  cashmere,   cotton  warp, 

Atlantic  Mills  F yards.. 


1896. 


526.2 

902.0 

14 

19.% 

(a) 

(b) 

(c) 

(d) 

2,040 

3,338 

199.7 

278.1 

2.7 

4.1 

3.9 

6.5 

83.8 

146.6 

25.3 

37.2 

5.2 

13.5 

187.8 

257.7 

334.5 

501.6 

104.5 

142.8 

180.2 

238.9 

218.8 

28S.7 

57.% 

179 

380.7 

1,151.1 

353.1 

1,089.9 

99.4 

212.6 

400.1 

564.1 

42.9 

140.5 

35.3 

64.2 

166.0 

223.7 

148.4 

227.3 

227.9 

368.6 

9.1 

13.2 

40.0 

81.2 

101.3 

147.5 

1911. 


a  4  pairs  and  $1.32  over. 
b  7  pairs  and  $1.36  over. 


c  12  pairs  and  13  cents  over, 
d  19  pairs  and  35  cents  over. 


06 


PROSPERITY  UNDER  PRESIDENT  TAFTS  ADMINISTRATION. 


Value  of  ten  bushels  of  potatoes  in  1896  and  1911  when  measured 
by  the  wholesale  prices  of  tlie  following  staple  articles. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb   wire:   galvanized pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs.. 

Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt__pairs__ 

Boots  and  shoes:  women's  solid  grain  shoes.—*. pairs.. 

Brick:   common  domestic number — 

Carbonate  of  lead:  American,  in  oil pounds— 

Carpets:   ingrain,  2-ply,   Lowell yards.. 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove Ttons._ 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons— 

Coffee:   Rio  No.  7 pounds— 

Cotton  flannels:  3%  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools— 

Denims:   Amoskeag  yards— 

Drillings:  brown  Pepperell yards.. 

Ginghams:   Amoskeag  yards— 

Glassware:  tumblers,  %  pint,  common dozen.. 

Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,   fence  and  common pounds.. 

Petroleum:  refined,  150°  fire  test,  water  white gallons- 
Print  cloths:  64x64 yards- 
Quinine:   American  ounces— 

Slieetings:  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings:  brown,  4-4,  Indian  Head yards.. 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards.. 

Sugar:    granulated   pounds. 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards. 

Tea:  Formosa,  fine pounds- 
Tickings:  Amoskeag  A.  C.  A yards- 
Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards. 


100.1 

2.% 
(a) 
(c) 
388 
0.5 
0.7 
15.9 
38.0 

4.8 

1.0 

35.7 

63.7 
19.9 
34.3 
41.6 
11 

72.4 
67.2 
18.9 
76.1 
8.2 
6.7 
31.6 
28.2 
43.4 
1.7 
7.6 
19.3 

15.5 


1911. 


353.5 
7.% 
(b) 
(d) 
1,308 
1.6 
2.6 
57.5 
109.0 

14.6 

5.3 

101.0 

196.6 
55.9 
93.6 

113.2 
70 

451.1 

427.1 
83.3 

221.1 
55.0 
25.2 
87.6 
89.1 

144.4 
5.2 
31.8 
57.8 

35.S 


a  Lacks  29  cents  of  price  of  1  pair, 
b  2  pairs  and  $2.47  over. 


c  2  pairs  and  27  cents  over, 
d  7  pairs  and  59  cents  over. 


Value  of  100  lbs.  cotton  (upland  middling)  in  1896  and  1911  when 
measured   by   the  wholesale  prices   of  the  following   staple 
articles. 
[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:    galvanized pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs- 
Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt— pairs- 
Boots  and  shoes:  women's  solid  grain  shoes pairs- 
Brick:  common  domestic number- 
Carbonate  of  lead:  American,  in  oil pount?;.. 

Carpets:   ingrain,  2-ply,   Lowell yards— 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons— 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons— 

Coffee:   Rio  No.  7 pounds— 

Cotton  flannels:  3%  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools.. 

Denims:    Amoskeag   yards.. 

Drillings:  brown  Pepperell yards.. 

Ginghams:   Amoskeag  yards.. 

(dassware:  tumblers,  %  pint,  common dozen— 

Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,   fence  and  common pounds— 

Petroleum:  refined,  150°  fire  test,  water  white gallons.. 

Print  cloths:  64  x  64 yards- 
Quinine:  American  ounces- 
Sheetings:  bleached,  10-4,   Wamsutta  S.   T yards. . 

Sheetings:   brown,  4-4,  Indian  Head yards.. 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards,. 

Sugar:    granulated pounds.. 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards.. 

Tea:  Formosa,  fine pounds- 
Tickings:  Amoskeag  A.  C.  A... yards.. 

Women's  dress  goods:   cashmere,   cotton  warp, 

Atlantic  Mills  F yards— 


403.5 

598.0 

10.% 

13 

(a) 

(b) 

(c) 

(d) 

1,564 

2,213 

2.1 

2.7 

3.0 

4.3 

6-1.2 

97.2 

153.2 

184.4 

19.4 

24.7 

4.0 

8.9 

144.0 

170.9 

256.5 

332.6 

80.1 

94.7 

138.2 

158.4 

167.8 

191.4 

44 

118.% 

291.9 

763.2 

270.7 

nt.n 

76  J 

140.9 

306.8 

374.0 

32.9 

93.1 

27.1 

42.5 

istr.a 

148.3 

113.8 

150.7 

174.7 

244.4 

7.0 

8.8 

30.7 

53.8 

77.7 

97.8 

1911. 


a  3  pairs  and  $1.17  over, 
b  4  pairs  and  $2.67  over. 


c  9  pairs  and  27  cents  over, 
d  12  pairs  and  84  cents  oyer. 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 


9? 


Value  of  cattle  (steers,  choice  to  extra)  per  100  pounds  in  1S96 
and  1911  when  measured  by  the  wholesale  prices  of  the  fol- 
lowing staple  articles. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:  galvanized — pounds- 
Blankets:  all  wool,  5  pounds  to  the  pair pairs.. 

Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt— pairs.. 
Boots  and  shoes:  women's  solid  grain  shoes pairs- 
Brick:  common  domestic number- 
Carbonate  of  lead:  American,  in  oil pounds- 
Carpets:   ingrain,  2-ply,  Lowell yards.. 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons— 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons- 
Coffee:  Rio  No.  7 pounds- 
Cotton  flannels:  3%  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools.. 

Denims:   Amoskeag  yards.. 

Drillings:  brown  Pepperell ._ yards.. 

Ginghams:   Amoskeag  yards.. 

Glassware:  tumblers,  %  pint,  common dozen.. 

Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,  fence  and  common pounds— 

Petroleum:  refined,  150°  Are  test,  water  white gallons- 
Print  cloths:    64  x  64 yards— 

Quinine:   American  r ounces— 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards. 

Sheetings:  brown,  4-4,  Indian  Head . yards— 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards 

Sugar:   granulated  pounds 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards- 
Tea:  Formosa,  fine pounds- 
Tickings:  Amoskeag  A.  C.  A yards. 

Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards 


1896. 

1911. 

234.2 

331.9 

6 

7 

(a) 

(b) 

(c) 

(d) 

908 

1,228 

1.2 

1.5 

1.7 

2.4 

37.3 

53.9 

88.9 

102.3 

11.3 

13.7 

2.3 

5.0 

83.6 

94.8 

149 

185 

46.5 

52.5 

80.2 

87.9 

97.4 

106.2 

25.% 

66 

169.4 

423.5 

157.1 

401.0 

44.2 

78.2 

178.1 

207.5 

19.1 

51.7 

15.7 

23.6 

73.9 

82.3 

66.0 

83.6 

101.4 

135.6 

4.0 

4.9 

17.8 

29.9 

45.1 

54.3 

36.2 


a  2  pairs  and  10  cents  over, 
b  2  pairs  and  $2.00  over. 


c  5  pairs  and  35  cents  over, 
d  7  pairs  and  12  cents  over. 


Value  of  hogs   (heavy)   per  100  pounds  in  1896  and  1911  when 
measured  by  the  wholesale  prices  of  the  following  staple 
articles. 
[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:  galvanized pounds- 
Blankets:  all  wool,  5  pounds  to  the  pair pairs- 
Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt— pairs- 
Boots  and  shoes:  women's  solid  grain  shoes pairs- 
Brick:  common  domestic number- 
Carbonate  of  lead:  American,  in  oil pounds- 
Carpets:  ingrain,  2-ply,  Lowell— yards.. 

Cement:  Portland,  domestic barrels- 
Coal:  anthracite,  stove tons.. 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons— 

Coffee:  Rio  No.  7 pounds- 
Cotton  flannels:  3%  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools— 

Denims:   Amoskeag  yards— 

Drillings:  brown  Pepperell.. yards— 

Ginghams:  Amoskeag  yards- 
Glassware:  tumblers,  %  pint,  common dozen- 
Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,   fence  and  common pounds.. 

Petroleum:  refined,  150°  fire  test,  water  white gallons- 
Print  cloths:   64x64 yards— 

Quinine:   American  ounces— 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings:  brown,  4-4,  Indian  Head yards.. 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards.. 

Sugar:    granulated   pounds.. 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards.. 

Tea:  Formosa,  fine pounds- 
Tickings:  Amoskeag  A.  C.  A yards- 
Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards.. 


1898. 


171.1 

309.6 

4.% 

6.% 

(a) 

(b) 

(c) 

(d) 

663 

1,146 

0.9 

1.4 

1.3 

2.2 

27.2 

50.3 

64.9 

95.4 

8.2 

12.8 

1.7 

4.6 

61.1 

88.4 

108.8 

172.1 

34.0 

49.0 

48.6 

82.0 

71.1 

99.0 

18.% 

61.% 

123.8 

395.0 

114.8 

374.0 

32.3 

72.9 

1S0.1 

194.2 

14.0 

48.2 

11.5 

22.1 

54.0 

76.8 

48.2 

78.0 

74.1 

126.5 

3.0 

4.5 

13.0 

27.9 

33.0 

50.6 

1911. 


a  1  pair  and  $1.11  over, 
b  2  pairs  and  $1.51  over. 


c  3  pairs  and  81  cents  over, 
d  6  pairs  and  65  cents  over. 


OS 


PROSPERITY  UNDER  PRESIDENT  TAFT'S  ADMINISTRATION. 


Value  of  20  pounds  of  butter  (dairy,  New  York  State)  in  1896 
and  1911  when  measured  by  the  wholesale  prices  of  the  fol- 
lowing staple  articles. 


[Compiled  from  Bulletin  No. 


United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:   galvanized pounds.. 

Blankets:  all  wool,  5  pounds  to  the  pair pairs.^ 

Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt. .pairs.. 

Boots  and  shoes:  women's  solid  grain  shoes pairs. _ 

Brick:  common  domestic number— 

Carbonate  of  lead:  American,  in  oil pounds.. 

Carpets:   ingrain,  2-ply,  Lowell yards.. 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons.. 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor tons.. 

Coffee:  Rio  No.  7 _ - pounds.. 

Cotton  flannels:  3%  yards  to  the  pound yards.. 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools— 

Denims:   Amoskeag  yards.. 

Drillings:  brown  Pepperell yards.. 

Ginghams:   Amoskeag  yards.. 

Glassware:  tumblers,  %  pint,  common dozen.. 

Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,   fence  and  common pounds.. 

Petroleum:  refined,  150°  fire  test,  water  white gallons.. 

Print   cloths:    64  x  64 yards— 

Quinine:   American  . — ounces— 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings:  brown,  4-4,  Indian  Head yards— 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards.. 

Sugar:    granulated   pounds— 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards.. 

Tea:  Formosa,  fine pounds- 
Tickings:  Amoskeag  A.  C.  A yards- 
Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards— 


1S(;G. 


169.7 

B6.Q 

4.H 

5.1 

(a) 

(b) 

(C) 

(d) 

658 

873 

0.9 

1.1 

1.3 

1.7 

27.0 

38.4 

64.4 

72.8 

8.2 

9.7 

1.7 

3.5 

60.5 

67.4 

107.9 

131.2 

33.7 

37.4 

58.1 

62.5 

70.0 

75.5 

I8.tt 

46.8 

122.8 

301.1 

113.8 

290.7 

32.1 

55.6 

129.0 

147,6 

13.8 

36.7 

11.4 

16.8 

53.5 

58.5 

47.8 

59.5 

73.5 

96.4 

2.9 

3.5 

12,9 

21.2 

32.7 

38.6 

1911. 


23.6 


a  1  pair  and  $1.08    over, 
b  1  pair  and  $2.53  over. 


c  3  pairs  and  78  cents  over, 
d  5  pairs  and  6  cents  over. 


Value  of  ten  dozen  eggs  in  1896  and  1911  when  measured  by  the 
wholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  99,  United  States  Bureau  of  Labor.] 


Articles. 


Barb  wire:  galvanized pounds- 
Blankets:  all  wool,  5  pounds  to  the  pair pairs- 
Boots  and  shoes:  men's  vici  kid  shoes,  Goodyear  welt.. pairs.. 
Boots  and  shoes:  women's  solid  grain  shoes pairs- 
Brick:  common  domestic number— 

Carbonate  of  lead:  American,  in  oil pounds- 
Carpets:   ingrain,  2-ply,  Lowell yards— 

Cement:  Portland,  domestic barrels.. 

Coal:  anthracite,  stove tons.. 

Coal:  bituminous,  Georges  Creek  (f.  o.  b.),  New  York 

Harbor .tons- 
Coffee:  Rio  No.  7 pounds- 
Cotton  flannels:  3^  yards  to  the  pound yards— 

Cotton  thread:  6-cord,  200-yard  spools, 

J.   &  P.  Coats 200-yard  spools— 

Denims:   Amoskeag  yards— 

Drillings:  brown  Pepperell yards- 
Ginghams:   Amoskeag  yards— 

Glassware:  tumblers,  %  pint,  common - dozen- 
Nails:  cut,  8-penny,  fence  and  common pounds.. 

Nails:  wire,  8-penny,  fence  and  common pounds- 
Petroleum:  refined,  150°  Are  test,  water  white gallons- 
Print  cloths:  64x64 yards- 
Quinine:   American  ounces— 

Sheetings:  bleached,  10-4,  Wamsutta  S.  T yards— 

Sheetings:  brown,  4-4,  Indian  Head yards.. 

Shirtings:  bleached,  4-4,  Fruit  of  the  Loom yards- 
Sugar:    granulated   pounds— 

Suitings:  indigo  blue,  all  wool,  14-ounce,  Middlesex yards.. 

Tea:  Formosa,  fine .pounds- 
Tickings:  Amoskeag  A.  C.  A yards- 
Women's  dress  goods:  cashmere,  cotton  warp, 

Atlantic  Mills  F yards— 


1896. 


88.7 

136.6 

2.% 

3 

(a) 

(b) 

(C) 

(d) 

344 

605 

0.5 

0.6 

0.7 

1.0 

14.1 

22.2 

83.7 

42.1 

4.3 

6.6 

0.9 

2.0 

81.7 

39.0 

56.4 

75.9 

17.6 

21.6 

80.4 

86.2 

36.9 

43.7 

9.^ 

27 

64.2 

174.3 

59.5 

165.0 

16.8 

32.2 

67.5 

85.4 

7.2 

21.3 

6.0 

9.7 

28.0 

34.0 

25.0 

34.4 

38.4 

55.8 

1,5 

2.0 

6.7 

12.3 

17.1 

22.3 

13.7 


1911. 


13.6 


a  Lacks  51  cents  of  price  of  1  pair, 
b  1  pair  and  36  cents  over. 


c  2  pairs  and  4  cents  over, 
d  2  pairs  and  94  cents  over. 


REGULATION    OF  CORPORATIONS 
UNDER  PRESIDENT   TAFT. 


The  foremost  issue  of  recent  years  and  especially  the  last 
three  years  has  been  the  control  of  corporate  business  for  the 
public  welfare.  The  nation  desires  a  business  machinery  of 
high  efficiency,  serving  the  interests  of  the  public,  and  returning 
ample  reward  to  those  who  use  that  machinery  ably  and  hon- 
estly. 

The  policy  of  the  Republican  Party  has  been  to  promote  busi- 
ness efficiency,  business  prosperity,  and  so  to  control  business 
forces  that  such  efficiency  and  prosperity  shall  rest  on  the  per- 
manent basis  of  honesty,  publicity  and  fair  dealing. 

The  policy  of  the  party  has  recognized  that  corporations  are 
the  accepted  and  necessary  form  of  doing  large  business.  Our 
vast  enterprises  cannot  be  carried  on  under  the  old  partnership 
or  individual  methods.  The  corporation,  however,  is  the  arti- 
ficial creature  of  statute,  and  the  public  is  accordingly  respon- 
sible for  corporate  conduct,  and  has  full  power  to  regulate  it. 
Proper  control  of  corporate  business  has  therefore  been  the 
object  of  that  policy.  Federal  action  has  become  a  necessity, 
because  our  great  corporate  businesses  have  been  practically 
nationalized  by  the  men  controlling  them.  Most  of  the  large 
concerns  that  affect  the  interest  of  the  public  are  combinations 
which  have  been  deliberately  organized  to  cover  wide  sections 
of  the  country  and  many  States. 

The  concentration  of  business  forces  in  great  combinations  has 
placed  enormous  power  in  the  hands  of  a  few  men,  with  little 
or  no  responsibility  for  its  proper  use.  These  powers  have  been 
in  some  instances  abused,  in  unfair  competition,  in  special  privi- 
lege, in  forcible  monopolization  of  the  avenues  of  trade  and  the 
natural  resources. 

The  object  of  the  Government  is  to  preserve  the  good  in  our 
present  business  organization,  its  efficiency,  its  economies,  and 
to  prevent  and  destroy  its  evils.  Business  efficiency  is  necessary 
for  the  common  welfare :  a  high  degree  of  organization  is  neces- 
sary for  efficiency ;  but  such  efficiency  must  promote  first  the 
welfare  of  the  ordinary  citizen,  and  such  business  organization 
must  be  based  on  that  fair  dealing  and  equal  opportunity  that 
are  a  part  of  the  great  ideal  on  which  this  nation  was  founded. 
The  increasing  control  of  the  Interstate  Commerce  Commission 
over  railways  has  enforced  fair  dealing  and  equal  opportunity. 
The  Federal  Corporation  Income  Tax  has  laid  the  foundation 
for  a  higher  degree  of  corporate  regulation.  The  Bureau  of 
Corporations  has  increasingly  enforced  efficient  publicity  of 
corporate  affairs,  and  brought  the  force  of  intelligent  public 
opinion  to  bear  on  business  abuses,  and  the  Department  of 
Justice  has  sought  to  enforce  existing  law. 

The  result  has  been  a  great  advance  in  the  solution  of  a  great 
issue.  No  single  act  or  statute  can  settle  it  at  a  stroke.  The 
process  must  be  slow,  if  it  is  to  be  effective,  but  existing  law, 
based,  as  it  is  believed,  on  principles  of  justice,  is  being  enforced. 
Intelligent  and  far-seeing  action  has  been  necessary  to  destroy 
abuses,  and  to  protect  more  fully  honest  efficiency,  while  laying 
plainly  before  the  American  people  the  real  facts  upon  which 
public  opinion  must  gradually  be  formed. 

BUREAU  OF   CORPORATIONS. 

The  Bureau  of  Corporations,  ever  since  its  creation,  has  urged 
a  broad  Federal  system  of  corporate  publicity,  which  shall  give 
the  public  plainly  the  essential  facts  of  our  great  businesses. 
With  a  trained  staff,  the  Bureau  has  collected  complete  informa- 

99 


100  REGULATION  OF  CORPORATIONS. 

tion  about  certain  selected  corporations  or  industries ;  has  stated 
plainly  the  meaning-  thereof,  and  published  it  in  reports.  The 
foremost  thing-  in  each  report  has  been  a  brief  summary  of  about 
five  printed  pages,  which  gives  the  important  facts  and  conclu- 
sions, framed  particularly  for  the  public  press.  The  essential 
facts  of  certain  great  businesses  have  thus  been  laid  clearly 
before  the  entire  body  of  citizens.  Following  are  some  of  the 
results  of  this  "efficient  publicity." 

OUTLINE  OF   WORK   PEBFOBMED. 

In  1906  the  Bureau  published  a  report  describing  a  great  sys- 
tem of  railway  discriminations  enjoyed  by  the  Standard  Oil 
Company.  Within  six  months  thereafter,  the  railroads  con- 
cerned canceled  every  rate  which  the  report  condemned  as  illegal, 
as  well  as  many  others  criticised  as  inequitable. 

Further  reports  published  in  1907  described  the  Standard  Oil 
Company,  its  investment,  earnings,  and  profits.  Many  indepen- 
dent oil  concerns  testified  that  these  pub  ications  caused  a  sub- 
stantial improvement  in  the  conduct  of  the  petroleum  business. 
In  1909  Congress  practically  repealed  the  retaliatory  duty  which 
had  prevented  imports  of  petroleum  from  the  most  important 
foreign  producing  fields,  and  these  reports  were  also  largely 
used  in  connection  with  that  action. 

In  1908  and  1909  the  Bureau  published  three  reports  on  the 
cotton  exchanges.  The  New  Orleans  Cotton  Exchange  at  once 
entered  into  cooperation  with  the  Bureau,  and  voluntarily 
adopted  certain  important  improvement*  in  methods. 

The  Bureau  has  also  reported  on  the  Tobacco  Combination 
(the  American  Tobacco  Company).  The  beneficial  results  were 
at  once  apparent.  The  Tobacco  Combination  promptly  aban- 
doned the  use  of  the  secret  subsidiary  concerns  exposed  by  this 
report  and  formerly  employed  against  independents.  Many  in- 
dependent manufacturers  stated  that  this  work  had  caused  the 
cessation  of  various  objectionable  methods  of  competition. 

In  1912  a  report  on  Water-Power  Development  was  published. 
It  showed  the  strong  tendency  toward  concentrated  control  of 
great  water  powers,  and  attracted  wide  public  attention  to  the 
subject.  Several  States  have  made  specific  use  of  the  informa- 
tion in  their  local  water-power  legislation. 

Three  reports  on  the  taxation  of  corporations  by  the  States 
have  been  published.  They  have  been  widely  used  by  public 
officials,  and  one  State  largely  revised  its  entire  tax  system  in 
accordance  therewith. 

The  Bureau  has  published  three  reports  on  Transportation  by 
Water  in  the  United  States.  They  set  forth  existing  waterway 
conditions,  with  criticisms  and  suggestions  thereon.  In  the  pres- 
ent active  interest  in  waterways,  these  reports  have  been  very 
generally  used,  and  have  had  a  wide  effect  on  public  opinion. 

A  report  was  also  made  on  the  standing  timber  of  the  country, 
which  showed  the  concentration  of  a  dominating  control  of  our 
standing  timber  in  a  comparatively  few  vast  holdings,  and  the 
unfortunate  effect  that  our  long-standing  public  land  policy  has 
had  in  producing  such  concentration. 

One  report  on  the  Steel  Industry  set  forth  the  organization, 
investment,  profits,  and  position  of  the  United  States  Steel  Cor- 
poration. Another  report  gave  the  costs  of  production  of  steel. 
Within  a  few  months  after  the  issuance  of  the  first  report,  the 
Corporation  announced  its  intention  to  cancel  the  so-called  Hill 
ore  lease,  and  also  reduced  by  about  25  per  cent  the  ore  rates 
on  its  northern  ore  railroads,  both  of  which  were  criticised  in 
the  report.  The  second  report  on  costs  was  largely  used  in  con- 
gressional debate  on  revision  of  the  tariff. 

THE   BESULT. 

Such  have  been  the  practical  results  of  ''efficient  publicity," 
even  within  the  narrow  range  which  the  Bureau  has  been  able 
to  cover.  Oppressive  methods  of  competition  have  been  reduced 
over    wide    areas ;    greater    equality    of    opportunity    is    being 


; 


REGULATION  OF  CORPORATIONS.  101 

afforded ;  corporate  interests  have  become  accustomed  to  a  pub- 
licity which  they  would  have  regarded  M  ..revolutionary  a  decade 
ago.  Many  of  them  are,  in.  fact,  cooperating,  by  voluntarily  fur- 
nishing much  of  the  information  obtained  by  the  Bureau.  The 
public  has  been  enlightened  on  many  fundamental  points  of 
finance  and  business  which  otherwise  came  to  the  ordinary 
citizen  only  in  fragmentary  and  confused  form  ;  the  President 
and  Congress  have  been  given  reliable  facts  bearing  on  economic 
questions  of  public  concern.  Finally,  the  effectiveness  of  simple 
publicity  and  the  resulting  public  condemnation  of  business 
abuses  has  been  proved. 

WORK    OF   THE    DEPARTMENT   OP    JUSTICE    IN  REGULATION 
OF  CORPORATIONS. 

Under  the  President's  direction,  and  through  the  efforts  of  his 
Attorney  General,  prosecutions  have  been  had  against  those 
combinations  handling  the  actual  necessities  of  life  in  a  manner 
deemed  to  be  in  violation  of  law  and  subversive  of  public  in- 
terests. Foremost  among  these  were  the  American  Sugar  Ke- 
fining  Company,  the  Imperial  Window  Glass  Company,  the 
National  Packing  Company,  the  Armour  Packing  Company,  the 
General  Electric  Company,  the  Trans-Atlantic  Steamship  Pool, 
the  Eastern  States  Retail  Lumber  Dealers'  Association,  the  United 
States  Steel  Corporation,  and  many  others,  the  business  of  each 
of  which   involved  the   interests   of  the   average  citizen. 

This  extraordinary  work  of  the  Department  has  been  carried 
on  in  harmony  with  the  President's  general  scheme  of  econom- 
ical administration.  The  Department  has  been  more  than  self- 
supporting,  for  the  Treasury  has  been  reimbursed  in  an  amount 
far  in  excess  of  the  aggregate  of  all  expenditures  on  account 
of  the  Department  of  Justice. 

The  total  expenses  of  the  Department  during  the  year  ending 
June  30,  1911,  including  the  offices  of  the  Attorney  General,  all 
of  the  district  attorneys  and  the  assistants,  and  special  assist- 
ants of  those  officials,  amounted  to  $3,223,773.89.  There  were 
actually  collected  and  paid  into  the  Treasury  of  the  United 
States,  as  the  result  of  suits  brought  or  compromises  effected  by 
the  Department,  the  sum  of  $3,467,095.39.  To  this  might  be 
added  the  sum  of  $737,020.12,  which  was  collected  during  this 
period  by  the  Solicitor  of  the  Treasury  in  compromises  of  claims 
in  suit,  making  an  aggregate  in  all  of  $4,204,115.51,  received 
and  collected  through  the  agency  of  the  Department  of  Justice. 

To  enumerate  in  detail  the  accomplishments  of  the  Depart- 
ment during  the  three  years  of  President  Taft's  Administration 
is  not  practicable  or  necessary  in  this  work — the  statements 
which  follow  are  intended  merely  to  present  in  as  concise  terms 
as  possible  the  more  important  features  of  the  work  performed 
in  the  interest  of  justice  and  on  behalf  of  the  people. 

THE    SHERMAN    ANTITRUST    LAW. 

What  is  known  as  the  Sherman  Antitrust  Act,  was  approved 
July  2,  1890,  but  soon  after  its  enactment  there  was  a  decision 
of  the  Supreme  Court  of  the  United  States  which,  being  either 
misunderstood  or  improperly  expressed,  effected  to  discourage 
those  who  were  interested  in  employing  the  Federal  power  to 
restrain  and  dissolve  industrial  monopolies. 

JUDGE  TAFT'S   INITIAL  ANTITRUST  DECISION. 

On  February  8,  1898,  Circuit  Judge  William  H.  Taft,  sitting 
with  Circuit  Justice  Harlan  and  Circuit  Judge  Lurton  in  the 
Sixth  Circuit,  handed  down  a  decision  in  the  case  of  United 
States  vs.  Addyston  Pipe  and  Steel  Company,  which  has  proven 
to  be  the  cornerstone  of  all  other  successes  by  the  United  States 
in  the  prosecution  of  violators  of  the  Sherman  Antitrust  law. 
The  Supreme  Court  of  the  United  States,  in  subsequently  pass- 
ing on  the  case,   affirmed  the  opinion  handed  down  by  Judge 


102  REGULATION  OI   CORPORATIONS. 

Taft,  adopted  his  reasoning  and  quoted  copiously  from  his  opin- 
ion, so  that  to  his  cxha^s^ive-  treatment  of  this  subject  and  his 
resultant  conclusions  is  largely  attributable  the  more  recent 
results  of  antitrust  prosecutions  which  have  settled  beyond 
peradventure  of  a  doubt  the  extensive  power  of  Congress  in 
enacting  statutes  under  the  interstate  commerce  clause  of  the 
Constitution  of  the  United  States. 

PROSECUTIONS    NOT   INIMICAL   TO   LEGITIMATE   BIG   BUSINESS. 

The  recent  decisions  favorable  to  the  Government  in  the  prose- 
cution of  the  Standard  Oil  Company  and  the  American  Tobacco 
Company  have  fully  demonstrated  the  effectiveness  of  the  law 
to  accomplish  the  purposes  for  which  it  was  enacted,  without 
at  the  same  time  precluding  a  proper  combination  of  capital 
and  coalescence  of  interest  when  such  action  is  not  taken  for 
the  purpose  of  entirely  eliminating  competition,  or  unreason- 
ably restricting  it,  but  rather  results  to  the  advantage  of  the 
consumer  because  it  makes  possible  a  more  advantageous  con- 
duct of  a  business  of  such  magnitude  that  the  combined  efforts 
of  several  persons  are  obviously  necessary. 

CRIMINAL  FEATURE   OF    SHERMAN    ACT. 

In  the  case  of  United  States  vs.  Kissell,  decided  December, 
19 10,  the  Supreme  Court  announced  an  important  construction 
of  the  Sherman  Act  as  a  criminal  statute.  In  that  case  the 
defendants,  who  were  indicted  for  conspiring  to  restrain  inter- 
state commerce  in  violation  of  the  first  section  of  the  Sherman 
Act,  interposed  a  bill  in  bar  showing  that  the  conspiracy  had 
been  originally  entered  into  more  than  three  years  prior  to  the 
finding  of  the  indictment,  and  any  action  thereon  was  conse- 
quently barred  by  limitation.  The  Circuit  Court  in  New  York 
sustained  the  plea,  although  the  indictment  charged  a  continu- 
ing conspiracy  to  eliminate  competition,  and  on  appeal  the 
Supreme  Court  overruled  the  circuit  court,  holding  that — 

"A  conspiracy  to  restrain  or  monopolize  trade  by  improperly  excluding 
a  competitor  from  business  contemplates  that  the  conspirators  will  remain 
in  business  and  will  continue  their  cbmbined  efforts  to  drive  the  com- 
petitor out  until  they  succeed.  If  they  do  continue  such  efforts  in  pur- 
suance of  the  plan,  the  conspiracy  continues  up  to  the  time  of  abandon- 
ment or  success." 

CONTRACTS   RESTRAINING   SUB-PURCHASER  VIOLATE   SHERMAN   ACT. 

In  the  case  of  Dr.  Miles  Medical  Company  vs.  John  D.  Park 
&  Sons  Company,  decided  at  the  December,  1910,  term,  the 
Supreme  Court  held  to  be  void,  because  constituting  an  unlawful 
restraint  of  interstate  commerce  under  the  Sherman  Act,  a  set 
of  contracts  between  the  manufacturer  of  proprietary  medi- 
cines prepared  pursuant  to  a  secret  formula,  and  purchasers 
therefrom,  devised  to  control,  not  merely  the  prices  at  which  the 
agents  of  the  vendor  might  sell  its  products,  but  the  prices  of 
all  sales  by  dealers  at  wholesale  or  retail,  whether  purchasers 
or  subpurchasers  from  the  manufacturer,  thus  fixing  the  amount 
which  the  consumer  should  pay,  and  eliminating  all  competition 
in  the  articles. 

The    Two    Leading    Cases. 

The  cases  of  the  Standard  Oil  and  Tobacco  combinations, 
which  were  by  far  the  most  important  yet  involved  in  trust 
combinations,  received  the  personal  attention  of  the  Attorney 
General,  who  argued  both  cases  before  the  Supreme  Court  in 
January,  1911.  The  decisions  were  by  a  unanimous  court,  but 
Justice  Harlan  dissented  from  a  portion  of  the  reasoning  an- 
nounced by  the  Chief  Justice  in  the  principal  opinion  in  each 
case. 

A   REASONABLE    CONSTRUCTION. 

The  court  in  these  decisions  adopted  an  interpretation  of  the 
act  which  did  not  bring  every  agreement  in  restraint  of  com- 


REGULATION  OF  CORPORATIONS.  103 

petition  within  its  condemnation,  and  held  that  a  reasonable 
construction  must  be  given  to  its  language,  and  that  not  every 
incidental  or  immaterial  restraint  of  competition  was  such  a 
restraint  of  trade  as  was  intended  to  be  inhibited  by  the  Sher- 
man Act,  but  that  a  contract,  combination,  or  conspiracy,  in 
order  to  fall  within  the  law,  must  impose  a  direct  and  undue 
restraint  upon  commerce  between  the  States  or  with  foreign 
countries.  The  application  of  this  decision  manifestly  answers 
the  argument  of  those  critics  who  maintain  that  the  adminis- 
tration's prosecution  of  the  trusts  is,  after  all,  inimical  to  the 
larger  properly  conducted  business  interests  of  the  country. 

STANDARD   OIL  DISSOLUTION. 

In  the  Standard  Oil  case  the  Supreme  Court  affirmed  the  de- 
cree of  the  circuit  court,  which,  in  effect,  required  the  Standard 
Oil  Company  of  New  Jersey  to  distribute  pro  rata  among  its 
shareholders  the  stocks  of  thirty-seven  other  corporations  held 
by  it.  Each  of  these  thirty-seven  corporations  in  turn  held  all, 
or  a  majority,  of  the  stocks  of  a  number  of  other  corporations 
engaged  in  the  same  or  similar  business.  The  court  enjoined 
the  thirty-eight  corporations  and  the  individual  defendants 
from,  in  the  future,  doing  a  certain  character  of  enumerated  acts 
which,  in  the  past,  had  resulted  in  the  creation  of  monopoly. 

STANDARD   OIL   AND    TOBACCO   CASES   DIFFERENTIATED. 

In  the  Tobacco  case  a  far  more  intricate  problem  was  pre- 
sented. Conveyances,  consolidations  and  mergers,  and  the  dis- 
solution of  previously  existing  corporations  whose  stock  and 
properties  had  been  acquired,  had  so  blended  the  whole  combi- 
nation into  new  form  as  to  make  it  impossible  to  effect  a  dis- 
solution by  the  same  method  applicable  to  the  Standard  Oil  case. 
In  view  of  the  unusual  circumstances  attendant  upon  the  dis- 
solution of  the  Tobacco  trust,  the  Supreme  Court  remitted  the 
case  to  the  circuit  court  with  directions  to  endeavor  to  ascer- 
tain and  determine  upon  some  plan  or  method  of  dissolving  the 
combination  and  of  re-creating  conditions  honestly  in  harmony 
with  law. 

The  duty  thus  devolved  upon  the  circuit  court  was  unprece- 
dented, and  the  judges,  therefore,  approached  the  subject  by  call- 
ing the  counsel  for  the  respective  parties  into  preliminary  con- 
ferences for  the  purpose  of  determining,  if  possible,  upon  the 
basis  or  principles  on  which  a  plan  of  disintegration  of  the 
combination  might  be  worked  out.  As  a  result  of  these  con- 
ferences, in  which  the  Attorney  General  and  his  assistants  par- 
ticipated, a  plan  was  proposed  by  the  defendants,  was  formally 
submitted  to  the  circuit  court,  and  after  appropriate  discussions 
was  approved  by  the  court,  with  certain  modifications,  by  the 
unanimous  decree  of  four  circuit  judges,  which  was  entered  No- 
vember 16,  1911. 

TOBACCO   TRUST   DISSOLVED. 

By'  the  terms  of  this  plan,  the  business  of  the  Tobacco  Trust 
in  its  various  branches  is  distributed  among  fourteen  separate 
and  distinct  corporations,  no  one  of  which  will  acquire  substan- 
tially more  than  one-third  of  the  business  of  the  country  in  any 
particular  line  on  which  it  has  to  deal.  The  decree  of  the  court 
perpetually  enjoins  all  the  distributee  corporations  (including 
any  new  ones  that  may  be  formed),  as  well  as  the  individual  de- 
fendants, from  such  conduct  in  the  future  as  in  the  past  resulted 
in  the  unlawful  conditions  condemned  by  the  Supreme  Court. 
It  also  specifically  enjoins  the  conveyance  of  property  by  any  one 
of  the  fourteen  companies  to  another ;  the  adoption  of  a  voting 
trust  or  other  similar  method  of  stock  control ;  the  making  of 
agreements  as  to  price,  terms  of  purchase,  or  of  sale  of  leaf 
tobacco,  or  tobacco  or  other  products  dealt  in  by  the  companies, 
or  the  apportionment  of  business  among  the  fourteen  corpora- 
tions  respecting  localities.     It  enjoins  the  employment  by  any 


104  REGULATION  OF  CORPORATIONS. 

one  of  the  distributee  companies  of  the  same  business  organiza- 
tion as  that  of  any  other,  or  the  occupation  of  the  same  offices. 
It  practically  enjoins  every  one  of  the  distributee  companies 
from  holding-  stock  in  any  corpration  a  part  of  whose  stock  is 
held  by  any  other  of  such  companies.  It  enjoins  every  one  of 
the  distributee  companies  from  doing1  business  except  in  its 
own  name  or  that  of  a  subsidiary  company,  and  where  business 
is  done  in  the  name  of  a  subsidiary,  it  directs  that  the  product 
must  also  bear  the  name  of  the  controlling  company.  It  was 
regarded  as  the  proper  concern  of  the  Attorney  General  to  see 
to  it  that,  in  the  new  conditions  to  be  formed,  no  one  company 
should  have  such  a  large  amount  of  the  business  of  the  country, 
in  any  particular  line  dealt  in,  as  to  threaten  or  accomplish 
monopoly,  but  not  to  compel  such  a  dissolution  as  would  result 
in  a  receivership  and  complete  disintegration.  The  plan  which 
was  approved  by  the  circuit  court  will  accomplish  the  objects 
of  the  law ;  and  the  various  injunctive  provisions  embodied  in 
the  decree  of  the  circuit  court  will  effectively  operate  to  prevent 
a  recurrence  in  the  future  of  those  agreements  and  conditions 
which  in  the  past  have  been  found  essential  to  the  creation  and 
maintenance  of  monopolistic  conditions. 

Trust  Prosecutions. 

In  less  than  three  years  of  the  present  administration  (to 
March  1,  1912)  22  civil  suits  have  been  brought  and  45  criminal 
indictments  found  under  the  Sherman  law,  making  in  all  67 
proceedings,  civil  and  criminal.  Demurrers  were  sustained  to 
four  indictments,  pleas  of  nolo  contendere  entertained  to  11 
indictments,  involving  more  than  80  defendants.  In  one  case 
defendant  plead  guilty.  Eight  out  of  12  defendants  were  con- 
victed on  one  indictment  after  trial  by  jury,  and  their  con- 
viction affirmed  by  the  Court  of  Appeals,  and  fifteen  criminal 
prosecutions  are  pending.  In  the  civil  suits,  judgment  was 
rendered  for  the  Government  in  one,  and  in  three,  the  defendants 
have  submitted  voluntarily  to  comprehensive  decrees  granting 
the  relief  sought  by  the  Government ;  two  were  dismissed,  and 
sixteen  are  now  pending. 

EFFICIENCY    OF   THE    SHERMAN    LAW    FULLY   PROVEN. 

Investigations  by  the  Department  have  resulted  in  discovering 
the  existence  of  many  forms  of  combinations  to  control  and  re- 
strain commerce  among  the  States  and  with  foreign  nations, 
which  completely  justify  the  wisdom  of  the  framers  of  the  Sher- 
man law  in  dealing  with  the  subject  in  such  broad,  comprehen- 
sive language  that  no  form  of  device,  which  results  in  unduly 
restraining  the  current  of  trade  and  commerce  among  the  States, 
or  with  foreign  nations,  or  in  the  unfair  monopolization  of 
such  commerce  in  any  line,  or  in  the  attainment  of  power  to 
control  a  vast  proportion  of  any  business  at  will,  and  to  destroy 
or  permit  competition  as  it  may  seem  to  the  interests  of  the 
possessor  of  that  power,  can  escape  the  condemnation  of  the 
statute.  The  decrees  and  convictions  which  have  been  secured 
against  violators  of  the  Sherman  Antitrust  Act  are  positive 
proof  of  the  efficacy  of  the  statute  in  its  present  form,  and  tend 
to  show  that  the  remedy  for  the  lack  of  enforcement  of  the 
statute  did  not  lie  in  its  repeal  or  modification  as  advocated  in 
some  quarters,  but  only  required  vigorous  and  fearless  action 
by  an  earnest  executive.  (For  a  more  detailed  discussion  of 
this  subject  see  President  Taft's  speech  of  acceptance,  occupying 
the  opening  pages  of  this  volume.) 

THE    SUGAR   CASES. 

A  brief  review  of  the  nature  of  the  cases  brought  under  the 
statute  during  the  present  administration  will  best  illustrate  the 
value  to  the  whole  people  of  the  existence  of  the  statute  and  the 
necessity  for  its  enforcement  in  the  protection  of  that  equality 
of   opportunity   which  is   declared  by  the  platform   of   the  Re- 


REGULATION  OF  CORPORATIONS.  105 

publican  Party  to  be  the  right  of  every  American.  The  first 
proceeding  brought  was  an  indictment  against  some  of  the 
officers  and  agents  of  the  American  Sugar  Refining  Company 
for  conspiring  to  secure  control  of  the  stock  of  a  Pennsylvania 
corporation,  which  was  about  to  engage  in  the  manufacture  of 
sugar  on  a  large  scale,  and  which,  by  reason  of  this  conspiracy, 
was  prevented  from  so  doing.  In  the  same  class  with  this 
case  should  be  included  the  suits  brought  against  the  Ameri- 
can Sugar  Refining  Company  and  its  subsidiary  companies,  and 
that  against  the  United  States  Steel  Corporation  and  its  sub- 
sidiary companies. 

COMBINATIONS    ON    FOOD    STUFFS. 

Following  this,  attention  was  given  to  certain  agreements 
between  producers  of  foodstuffs  fixing  prices  and  dividing  bus- 
iness among  themselves  in  agreed  proportions,  thus  destroying 
all  competition  between  them.  Among  these  were  agreements 
involved  in  the  suit  against  the  Southern  Wholesale  Grocers' 
Association,  in  which  the  defendants  voluntarily  submitted  to 
a  decree  enjoining  them  from  entering  into,  and  carrying  out, 
agreements  not  to  sell  to  any  buyer  not  a  member  of  the  Southern 
Wholesale  Grocers'  Association,  the  purpose  of  which  agreements 
was  the  preventing  of  retail  dealers  from  purchasing  the  goods 
in  which  they  dealt  directly  from  the  manufacturers,  and  com- 
pelling them  to  buy  from  the  middleman  or  jobber.  Such 
agreements  were  common  among  the  wholesale  grocers,  lumber 
dealers  and  others.  There  is  now  pending  a  scries  of  five  pro- 
ceedings against  various  associations  of  lumber  dealers  insti- 
tuted for  the  purpose  of  relieving  that  industry  from  the  arti- 
ficial restraints  imposed  upon  it  by  the  various  lumber  trade 
associations  throughout  the  country.  There  have  also  been  pro- 
ceedings against  a  number  of  ordinary  crude  pooling  arrange- 
ments of  the  kind  that  were  formerly  very  prevalent  in  this 
country. 

THE   WIRE   POOLS. 

Nine  indictments  found  in  New  York  against  eighty-three 
persons  engaged  in  the  wire  industry  were  based  upon  agree- 
ments between  substantially  all  of  the  manufacturers  in  the 
country  of  certain  kinds  of  wire,  whereby  they  organized  them- 
selves into  associations,  pooled  their  business  and  divided  it 
on  an  agreed  percentage  basis.  The  operations  of  these  pools 
continued  until  a  very  recent  date,  and  the  grand  jury  in  New 
York  found  no  difficulty  in  indicting  the  various  defendants  who 
engaged  in  them.  Nearly  all  have  interposed  pleas  of  nolo  con- 
tendere, and  have  been  fined  in  amounts  averaging  $1,000  each, 
except  that  the  defendant  who  was  the  supervisor  of  the  pool 
was  fined  $45,000. 

THE    WINDOW    GLASS    COMBINATION. 

One  of  the  most  notable  cases  of  combination  in  restraint 
of  trade  presented  was  that  of  the  manufacturers  of  hand-blown 
window  glass.  Practically  all  of  the  manufacturers  (eighty- 
three  in  number,  manufacturing  98  per  cent  of  this  product) 
entered  into  contracts  with  the  company  constituted  for  the 
purpose,  whereby  each  producer  agreed  to  sell  his  entire  output 
of  hand-blown  glass  to  this  company  and  not  to  sell  to  any 
other  person  or  corporation,  by  means  of  which  the  entire  market 
of  that  commodity  was  controlled  and  the  price  was  increased 
within  a  year  approximately  100  per  cent.  The  violators  were 
indicted,  entered  pleas  of  nolo  contendere,  which  were  accepted 
by  the  court  and  fines  imposed,  since  which  the  agreements 
have  been  abandoned,  the  business  restored  to  its  former  basis 
and  a  substantial  reduction  in  the  price  of  the  commodity 
effected. 

PATENTS    EMPLOYED    IN    RESTRAINT. 

In  the  case  of  United  States  vs.  General  Electric  Company  and 
others,  involving  the  practice  of  employing  the  rights  of  a  pat- 
entee   over   a   patented    article    as    a   basis    for    controlling   the 


106  RKGULATTOX  OP  CORPORATIONS. 

entire  business  with  which  the  patented  article  may  be  con- 
nected, the  defendant  submitted  to  a  decree  terminating  cer- 
tain agreements,  under  which  this  business  had  been  controlled. 
This  decree  establishes  a  precedent  of  great  value  in  restrain- 
ing attempts  to  use  patent  rights  as  a  means  of  unduly  ex- 
tending control  over  an  industry.  This  was  the  initial  corpora- 
tion of  magnitude  to  respond  to  the  Government's  suit  by  a 
candid  effort  to  comply  with  its  demands. 

BATH    TUB   TRUST,    PATENTS.       CIVIL   AND    CRIMINAL   VIOLATIONS. 

The  suit  against  the  Standard  Sanitary  Manufacturing  Com- 
pany (the  so-called  Bath  Tub  Trust).,  which  resulted  in  a  de- 
cree in  favor  of  the  Government  by  the  Circuit  Court  in  the 
Fourth  Circuit,  in  October,  1911,  was  based  upon  agrements  be- 
tween the  defendants,  under  which  certain  patents  were  as- 
signed to  an  agreed  transferee,  the  defendants  having  previously 
agreed  upon  a  system  of  licenses  whereby  each  should  receive 
from  such  transferee  a  license  to  manufacture  under  these 
patents  upon  terms  and  conditions  by  which  all  competition 
between  the  defendants  in  enameled  ware,  use»i  in  household 
bath  rooms  (amounting  to  about  85  per  cent  of  the  entire  pro- 
duct) was  suppressed  and  eliminated  and  uniform  prices  and 
terms  of  sale  fixed  and  established.  The  decree  rendered  by 
the  circuit  court  sustains  the  Government's  contentions,  and 
the  opinion  of  Judge  Rose  is  the  most  important  judicial  ex- 
pression thus  far  secured  from  any  court  on  the  subject  of 
restraint  of  trade  in  patented  articles.  The  defendants  in  thjs 
civil  suit  were  also  indicted  in  the  United  States  Court  in  the 
Eastern  District  of  Michigan  for  the  offense  which  formed  the 
basis  of  the  civil  suit,  and  this  criminal  proceeding  is  now  pend- 
ing. 

PATENTS    AND    COLLATERAL    CONTRACTS    IN    RESTRAINT. 

Another  case  involving  the  unlawful  extension  of  the  power 
of  patentees  is  the  case  of  the  United  Shoe  Machinery  Com- 
pany. A  number  of  the  officers  cf  this  concern  have  been  in- 
dicted for  violation  of  the  Sherman  law,  and  this  was  fol- 
lowed by  the  filing  of  a  petition  in  equity  on  the  civil  side  of 
the  court,  which  suit  is  now  pending.  The  case  involves  the 
validity  of  a  complicated  series  of  agreements  known  as  "tying 
agreements,"  under  which  the  company  requires  any  shoe  man- 
ufacturer who  desires  to  use  any  machine  or  implement  manu- 
factured by  it,  and  useful  in  connection  with  shoemaking.  to 
lease  it  under  leases  containing  restrictive  provisions  binding 
for  the  full  term  of  seventeen  years  from  the  date  of  the  agree- 
ment, irrespective  of  the  date  of  the  expiration  of  the  patent, 
and  under  which  the  lessee  further  agrees  to  use  the  machine 
or  device  so  leased  only  in  connection  with  other  machinery 
manufactured  and  leased  by  the  United  Company  in  every  case 
where  that  company  manufactures  the  machine.  The  legality 
of  these  provisions  is  involved  in  the  civil  suit,  while  the  le- 
gality of  the  monopoly  secured  by  the  use  of  such  agreements, 
as  well  as  of  the  other  acts  set  forth  in  the  indictment,  is  in- 
volved in  the   criminal  prosecution. 

UNWARRANTED    INCREASE    IN    TRANSPORTATION    RATES. 

In  May.  1910,  the  Government  brought  suit  to  restrain  the 
trunk  lines  of  railroads  in  the  western  classification  territory 
from  putting  into  effect  increased  tariffs  upon  a.  very  large 
number  of  commodities  on  the  eve  of  the  enactment  by  Con- 
gress of  legislation  vesting  the  Interstate  Commerce  Commis- 
sion with  power  to  investigate  a  proposed  increase  in  rates 
before  it  took  effect,  so  that  the  people  should  be  compelled  to 
pay  increased  rates  of  freight  for  transportation,  pending  an 
inquiry  as  to  the  reasonableness  and  justness  of  the  proposed 
increase.  The  circumstances  under  which  this  particular  in- 
crease was  agreed  upon  by  the  railroad  companies  in  the 
opinion  of  the  law  officers  of  fche  (iovernment  took  it  out  of 
the    ordinary    system    of    rate    making,    and    justified    a    resort 


REGULATION  OF  CORPORATIONS.  107 

to  the  Sherman  law  to  protect  the  public  from  the  .arbitrary 
action  of  the  carriers,  which,  if  unchecked,  would  have  com- 
pelled the  people  to  pay  increased  rates  during-  the  period 
they  were  under  investigation.  After  "the  enactment  of  the 
Commerce  Act  of  June  25,  1910,  which  extended  the  power  of 
the  Interstate  Commerce  Commission  over  the  subject,  the 
bill  was  dismissed  by  the  Government,  and  subsequent  investi- 
gation by  the  Interstate  Commerce  Commission  resulted  in  the 
finding  by  it  that  the  proposed  increase  was  unwarranted  and 
should  not  be  made,  thus  completely  justifying  the  action  of 
the  Government  in  intervening  when  and  as  it  did. 


COMBINATIONS    BY    FOREIGN    STEAMSHIP    COMPANIES. 

The  civil  suit  brought  against  the  Hamburg-American  Steam- 
ship Company  and  others,  in  New  York,  involves  the  question 
whether  or  not  the  United  States  is  powerless  in  the  face 
of  a  combination  of  virtually  all  the  trans-Atlantic  steamship 
lines  authorized  by  the  law  of  the  European  countries  where 
most  of  them  are  domiciled,  whereby  substantially  the  entire 
business  of  transportation  by  steam  vessel  across  the  North 
Atlantic  is  pooled,  rates  and  prices  are  fixed  by  the  pooling  as- 
sociation, and  all  competition  in  rates  and  terms  of  shipment 
suppressed.  In  this  case  it  is  contended  by  some  of  the  rep- 
resentatives of  foreign  lines  that  while  American  agents  might 
be  individually  punishable  under  the  Sherman  Act,  its  efficacy 
does  not  extend  to  European  associations  valid  where  org-anized. 
It  is  obvious  that  unusual  difficulties  attend  the  prosecution 
of  this  case,  but  the  Supreme  Court  held  in  the  Tobacco  case 
that,  if  necessary,  unusual  remedies  would  be  invoked  to  carry 
into  effect  the  provisions  of  the  Sherman  law,  and  it  is  con- 
fidently expected  that  if  the  Government  shall  establish  on 
the  trial  of  this  case  on  its  merits  the  facts  averred  in  the  pe- 
tition, which  the  circuit  court  has  already  held  were  sufficient 
to  make  out  a  prima  facie  case  of  unlawful  restraint  of  for- 
eign commerce,  a  means  will  be  found  to  enforce  a  prope'r  re- 
spect for  the  law  of  this  country  even  by  the  owners  of  for- 
eign steamship  companies  who  use  its  ports. 

9 

The    Eilicacy   and   Justness   of   the    Sherman    Act. 

By  those  whose  violations  have  made  necessary  the  invo- 
cation of  the  strong  arm  of  the  law,  the  statement  is  made  that 
the  enforcement  of  the  Sherman  Act,  now  that  it  is  admitted 
that  it  is  effectively  enforcible,  is  to  obstruct  business  pro- 
gress, restore  antiquated  methods  of  destructive  competition  be- 
tween small  concerns  and  to  make  possible  those  useful  combi- 
nations of  capital  and  the  reduction  of  the  cost  of  production 
that  are  essential  to  continued  prosperity  and  normal  growth. 
These  allegations  appear  to  be  fully  answered  in  what  has  been 
hereinbefore  set  forth,  but  the  language  of  President  Taft  in 
his  message  to  Congress  on  December  5,  1911,  depicts  the  sit- 
uation in  unmistakable  simplicity.     He  said  : 

"But  now  that  the  Anti-trust  Act  is  seen  to  be  effective  for  the  accom- 
plishment of  the  purpose  of  its  enactment,  we  are  met  by  a  cry  from  many 
different  quarters  for  its  repeal.  It  is  said  to  be.  obstructive  of.  business 
progress,  to  be  an  attempt  to  restore  old-fashiOned  methods  of  destructive 
competition  between  small  units,  and  to  make  impossible  those  useful 
combinations  of  capital  and  the  reduction  of  the  cost  of  production  that 
are   essential  to   continued   prosperity   and   normal   growth. 

"In  the  recent  decisions  the  Supreme  Court  makes  clear  that  there  is 
nothing  in  the  statute  which  condemns  combinations  of  capital  or  mere 
bigness  of  plant  organization  to  secure  economy  in  production  and  a  in- 
duction of  its  cost.  It  is  only  when  the  purpose  or  necessary  effect  of 
the  organization  and  maintenance  of  the  combination  or  the  aggregation 
of  immense  size  are  the  stifling  of  competition,  actual  and  potential,  and 
the  enhancing  of  prices  and  establishing  a  monopoly,  that  the  statute  is 
violated.  Mere  size  is  no  sin  against  the  law.r  The  merging  of  two  or 
more  business  plants  necessarily  eliminates  competition  between  the  units 
thus  combined,  but  this  elimination  is  in  contravention  of  the  statute  only 
when  the  combination  is  made  for  purpose  of  ending  this  particular  com- 
petition in  order  to  secure  control  of,  and  enhance,  prices  and  create  a 
monopoly." 


108  REGULATION  OF  CORPORATIONS. 

Recapitulation   and   Statement   of   Cases. 

At  the  beginning  of  the  administration  of  President  Taft, 
there  were  approximately  16  cases  pending-  under  the  Sherman 
Anti-trust  Act,  nearly  all  of  which  have  been  terminated  in 
favor  of  the  Government.  The  cases  against  the  Heading  Rail- 
road Company  et  al.,  and  the  Union  Pacific  Railroad  Company 
et  al.,  have  been-  argued  in  the  Supreine  Court,  and  the  case 
against  the  American  Naval  Stores  Company  et  al.  is  now  pend- 
ing. 

There  were  instituted  during  the  seven  and  one-half  years  pre- 
ceding the  present  administration  a  total  of  44  cases,  while  dur- 
ing tne  three  years  just  completed  of  the  Taft  administration 
there  were  instituted  a  total  of  67  cases,  which,  with  the  16  cases 
pending  when  the  administration  came  in,  makes  a  total  of  83 
cases  handled  by  the  present  administration.  From  the  date 
of  the  passage  of  the  act  to  March  4,  1909,  the  number  of  cases 
instituted  aggregated  but  62 — twenty-one  less  than  have  been 
handled  during  three  years  of  the  Taft  administration. 

Summary   of   Cases   Under  Anti-trust   Laws. 

President  Harrison's  Administration. 
Four  bills  in  equity. 
Three  indictments. 

President  Cleveland's  Administration. 
Four  bills  in  equity. 
Two  indictments. 
Two   informations  for  contempt. 

President  McKinley's  Administration. 

Three  bills  in  equity. 
President  Roosevelt's  Administration. 

Eighteen  bills  in  equity. 

Twenty-five  indictments. 

One  forfeiture  proceeding. 

First  three  years  of  President's  Taft's  Administration. 
Twenty-two  bills  in  equity.  * 

Forty-five  indictments. 

This  statement  would  be  materially  augmented  by  the  addition 
of  those  cases  in  which  negotiations  are  being  conducted  be- 
tween the  combinations  and  the  Department  of  Justice,  with  a 
view  to  arriving  at  a  basis  upon  which  the  offending  corporation 
may  consent  to  a  voluntary  decree  in  accordance  with  the  con- 
struction placed  by  the  Supreme  Court  upon  the  Sherman  law. 

Interstate   Commerce. 

Beginning  with  the  present  administration,  there  were  102 
criminal  actions  pending  brought  under  the  interstate  commerce 
law,  and  158  new  cases  were  instituted  within  the  following 
two  years.  Of  this  total  number  there  were  183  cases  terminated 
during  that  period,  113  convictions  being  secured,  with  five  ac- 
quittals, the  other  65  being  dismissed  or  discontinued.  Fines 
amounting  to  $232,985.45  were  collected. 

During  the  last  two  years  previous  to  the  administration  of 
President  Taft,  there  were  77  convictions  secured  and  six  ac- 
quittals. 

SAFETY    APPLIANCE    ACT. 

Since  the  4th  of  March,  1909,  there  were  instituted  940  cases. 
During  the  last  fiscal  year  170  cases,  involving  410  counts,  were 
transmitted  to  the  United  States  Attorneys  for  prosecution  un- 
der this  act.  During  this  period  penalties  to  the  extent  of 
$35,200  were  assessed,  and  costs  to  the  extent  of  $3,594.90  were 
taxed,  and  the  total  amount  of  $38,794.90  actually  paid  into  the 
Treasury.  t    ' 


REGULATION  OF  CORPORATIONS.  109 

HOURS    OF    SERVICE    ACT. 

During-  the  present  administration  1,555  cases  have  been  in- 
stituted under  this  act,  and  of  these,  63  cases,  involving  1.163 
counts,  were  transmitted  to  the  United  States  Attorneys  during 
the  last  fiscal  year.  Penalties  and  costs,  amounting  to  $8,009.22, 
were  collected. 

ASH    PAN    ACT. 

Forty  suits  for  violation  of  this  act  have  been  instituted  dur- 
ing the  present  administration,  and  of  these  16  were  reported  for 
prosecution  during  the  last  fiscal  year,  involving  23  counts.  One 
thousand  seven  hundred  and  thirty-four  dollars  and  fifty-sown 
cents  in  penalties  and  costs  were  collected  during  the  fiscal  year. 

TWENTY-EIGHT    HOUR  LAW. 

During  the  last  fiscal  year  the  Department  of  Agriculture 
reported  598  instances  of  apparent  violations  of  the  28-hour  law, 
which  were  transmitted  to  the  United  States  Attorneys  for 
prosecution.  This  is  an  increase  of  160  cases  over  the  number 
reported  in  1910.  On  June  30,  1911,  there  were  807  cases  pend- 
ing, in  the  various  districts.  Penalties  were  assessed  in  254 
cases  during  the  year,  and  66  cases  were  dismissed.  Penalties 
and  costs  in  the  sum  of  $31,858.85  were  collected. 

REBATES    AND    UNLAWFUL   DISCRIMINATIONS. 

Forty-six  prosecutions  for  illegal  discriminations  and  rebates, 
under  the  Hepburn  Act  and  Elkins  Act,  were  instituted  during 
the  last  fiscal  year.  These  cases,  together  with  prosecutions 
for  violation  of  the  safety  appliance  and  hours  of  service  acts, 
have  been  dealt  with  in  conferences  with  attorneys  for  the  In- 
terstate Commerce  Commission,  as  such  proceedings  are  usually 
initiated  by  that  body,  although  under  the  control  and  super- 
vision of  the  Department  of  Justice. 


RAILWAY    REGULATION. 

Work  of   the   Interstate   Commerce   Commission. 

The  railways  of  the  country  are  the  main  highways  of  com- 
merce. Their  ability  to  transport  traffic  measures  the  profit- 
able production  of  this  vast  country.  Next  to  personal  liberty 
and  security  the  right  to  use  these  highways  on  equal  terms  is 
the  most  primary  and  fundamental  right  which  the  individual 
can  possess.  Upon  this  depends  his  ability  to  engage  success- 
fully in  any  undertaking  requiring  the  interchange  of  com- 
modities. The  marvelous  growth  of  our  railways,  their  incom- 
parable utility,  the  indispensable  service  they  perform,  the  vast 
capital  they  represent,  and  the  enormous  amount  of  labor  they 
employ,  all  require  their  subjection  to  adequate  public  control. 

History   of  Legislation   to   Control   Railways  in   the 
United    States. 

The  first  serious  attempt  at  Federal  railway  control  was  the 
passage  in  1887  of  the  act  to  ^regulate  commerce,  commonly 
known  as  the  Interstate  Commerce  Law.  The  administration 
of  this  law  was  committed  to  a  Commission  of  five  members, 
of  whom  not  more  than  three  should  belong  to  the  same  po- 
litical party.  The  number  was  increased  in  1906  to  seven 
members,  with  the  requirement  that  not  more  than  four  should 
be  of  the  same  political  party.  The  Commission  was  Intended 
to  be,  and   in  fact  has  always  been,   strictly   nonpartisan. 

Under  the  original  law  and  its  various  amendments  the  Com- 
mission exercised  such  authority  as  was  conferred  upon  it  by 
the  Congress,  and  the  results  were  in  the  main  highly  satis- 
factory.    The    original    law    did    not    remedy    all    existing    evi.s 


HO  RKGULATTON  OF  CORPORA TIONS. 

but  it  did  bring  great  relief.  The  publicity  secured  in  respect 
of  rates,  contracts,  and  practices  was  alone  sufficient  to  wipe 
out  many  of  the  worst  existing  transportation  abuses,  and 
the  cases  decided  by  the  courts  furnished  the  legal  groundwork 
for  a  more  perfect  superstructure.  Far  from  producing  the 
disastrous  results  said  to  be  inherent  in  Government  regula- 
tion, the  best  interests  of  both  railroads  and  shippers  were  sub- 
served. Between  1887,  and  1910  the  railroad  mileage  of  the 
country  increased  by  about  102,500  miles,  about  four  times  the 
distance  around  the  earth ;  and  their  operation,  facilities  and 
equipment  have  been  augmented  in  a  marvelous  manner,  while 
the  prosperity  and  wealth  of  the  country  has  challenged  the 
admiration  of  the  world. 

The  exercise  of  governmental  authority  does  not  often  reach 
perfection  with  the  first  enactment,  but  necessarily  must  de- 
velop with  experience.  The  original  act  was  found  defective 
not  in  its  promulgation  of  fundamental  rights  and  duties  so 
much  as  in  the  means  provided  for  its  enforcement,  and  the 
experience  of  the  Commission  brought  to  light  abuses  and 
methods  of  circumventing  the  law  which  were  not  contemplated 
or  even  known  at  the  time  of  its  passage.  When  tested  in 
the  courts  it  was  found,  for  instance,  that  although  it  was  un- 
lawful to  charge  an  unreasonable  or  discriminatory  rate,  and 
the  Commission  could  award  damages  for  such  a  charge,  it 
was  without  authority  to  require  the  reduction  of  the  rate  for 
the  future.  It  was  also  found  that  discriminations  could  still 
be  practiced  in  the  collateral  services  rendered  by  carriers, 
such  as  icing,  refrigeration,  elevation,  storage  and  switching 
charges.  By  becoming  a  purchaser  and  shipper  over  its  own 
line,  a  not  infrequent  occurrence  in  the  case  of  staple  commod- 
ities such  as  grain,  coal,  and  lumber,  a  railroad  going  beyond 
its  function  as  a  carrier  could  enter  into  destructive  compe- 
tition with  private  enterprise,  a  practice  tending  to  give  the 
carriers  a  monopoly  in  the  purchase  and  sale  as  well  as  in  the 
transportation  of  the  commodities  in  which  they  might  choose 
to  become  dealers.  These  defects  in  the  original  act  and  the 
abuses  and  evils  arising  out  of  them  have  been  successfully 
corrected  by  the  so-called  Hepburn  Act ;  important  new  powers 
have  also  been  given  to  the  Commission  and  other  far-reaching 
amendments  made  in  the  law  by  the  recent  Mann-Elkins  Act. 

The   Hepburn  Act. 

This  act,  passed  by  a  Republican  Congress  and  approved  by 
a  Republican  President  on  June  29,  1906,  was  most  emphat- 
ically the  announcement  in  the  law  of  the  land  of  the  doctrine 
not  only  of  the  greatest  good  to  the  greatest  number,  but  of 
absolute  and  complete  justice  to  all.  Justice  may  be  attained 
in  two  ways — by  prevention  and  by  prosecution.  Any  law  de- 
signed to  benefit  the  public  at  large  must  look  to  prevention 
rather  than  prosecution,  and  although  the  Hepburn  law  pro- 
vides penalties  sufficient  to  act  both  as  a  deterrent  and  a  pun- 
ishment, its  purpose  is  to  provide  for  the  prevention  of  abuses 
rather  than  their  punishment  after  diseovery.  Damages  will 
seldom  compensate  a  man  whose  business  has  been  destroyed 
by  rebates  allowed  to  a  competitor.  His  safety  lies  in  the  ab- 
solute prohibition  of  those  rebates.  With  these  prefatory  re- 
marks in  mind,  the  leading  provisions  of  the  Hepburn  law  may 
be  briefly  summarised  as  follows: 

1.  It  amended  the  Elkins  law  so  as  to  restore  the  imprison- 
ment penalty  for  rebating;  it  made  the  receiver  of  the  rebate 
equally  guilty  with  the  giver,  and  provided  for  the  recovery  of 
three-fold  damages  in  the  case  of  the  acceptance  of  rebates. 
In  the  enforcement  of  this  provision  many  flue's  have  been  im- 
posed both  upon  carriers  and  shippers,  and  the  result  is  the 
practical  suppression  of  the  evil  throughout  this  country,  to 
the  great  benefit  of  the  general  business  interests.  Nothing  in 
the  past  has  so  powerfully  aided  the  aggressions  of  industrial 
trusts  or  has  been  so  destructive  to  the  independent  dealer. 
The  small  shipper  is  now  on  a  footing  of  equality  with  his  lar- 
gest competitor  so  far  as  transportation  charges  are  concerned. 


REGULATION  OF  CORPORATIONS.  Ill 

2.  It  gave  the  Commission  power  to  reduce  a  rate  found  to 
be  unreasonable  and  the  power  to  require  a  carrier  to  cease 
and  desist  from  collecting  a  discriminatory  rate.  While  the 
courts  could  award  damages  on  past  shipments,  they  had  no 
power  to  protect  the  shipper  against  excessive  and  discrimina- 
tory rates  in  the  future ;  and  the  pecuniary  consequence  of 
such  a  rate  to  a  particular  shipper  was  frequently  so  small, 
when  compared  with  the  cost  of  the  litigation,  that  an  ap- 
peal to  the  courts  proved  futile  andt  wholly  inadequate ;  and 
even  where  damages  were  awarded  the  court  could  not  con- 
trol the  rate  for  the  future.  The  Hepburn  Act  met  this  sit- 
uation by  providing  the  shipper,  through  the  agency  of  the 
Commission,  with  a  simple  and  inexpensive  way  of  securing  dam- 
ages resulting  from  excessive  rates  on  liis  past  traffic,  and  a 
freedom  from  excessive  charges  for  the  future.  The  individual 
shipper  whether  large  or  small  was  relieved  of  the  burden 
and  expense  of  protracted  litigation,  and  that  cost  was  placed 
by  the  act  where  if  belongs,  namely,  upon  the  public  at  large 
as  represented  by  the  Government. 

3.  The  orders  of  the  Commission  were  made  self-operative. 
Under  the  former  procedure  when  a  carrier  refused  to  comply 
with  an  order  it  could  be  enforced  only  by  litigation,  often 
protracted  during  several  years,  leaving  the  injured  party  with- 
out relief  in  the  meantime.  Under  the  Hepburn  Act  the  car- 
rier was  required  either  promptly  to  obey  the  order  or  to  assume 
the  burden  of  securing  its  annulment  by  the  courts. 

4.  The  so-called  "midnight  tariffs,"  whereby  under  legal  form 
favored  shippers  were  given  advantages  in  rates  which  really 
amounted  to  rebates,  were  abolished  by  a  provision  requiring 
the  carriers  to  give  30  days'  notice  of  changes  in  rates.  More- 
over, all  incidental  services  such  as  icing,  storage,  refrigeration, 
elevation  and  the  like  were  subjected  to  the  same  restrictions 
as  transportation  itself,  and  preferences  and  other  abuses  in 
the  use  of  these  incidental  services  were  brought  under  con- 
trol of  the  Commission  and  practically  no  longer  exist. 

5.  Express  companies,  sleeping  car  companies  and  pipe  lines 
were  made  subject  to  the  law  and  the  use  of  their  services  re- 
moved from  the  field  of  private  barter.  Substantial  reductions 
in  sleeping  car  and  express  charges  have  resulted  from  orders 
entered  by  the  Commission  in  formal  complaints  before  it  since 
the  provisions  of  the  act  were  extended  to  these  companies. 

6.  The  Commision  was  authorized  to  prescribe  the  forms  of 
any  and  ali  accounts,  records  and  memoranda  kept  by  car- 
riers subject  to  the  act,  and  to  employ  special  examiners  with 
authority  to  inspect  any  and  all  such  accounts.  Much  of  this 
work  has  been  brought  to  a  conclusion,  and  regular  and  spec- 
ial examinations  are  being  made  of  the  accounts  of  interstate 
carriers.  The  right  to  examine  the  accounts  of  carriers  at  any  and 
all  times  is  perhaps  the  most  adequate  means  yet  suggested  for 
the  prevention  and.  detection  of  rebating  and  other  illegal  prac- 
tices. The  provision  opens  to  the  Government  some  degree  of 
administrative  supervision  over  the  manner  in  which  the  car- 
riers comply  with  the  duties  imposed  upon  them  by  law,  and 
by  localizing  responsibility  for  the  rigid  enforcement  of  the 
accounting  system  so  prescribed  by  the  Commission  the  cor- 
rect application  of  funds  would  seem  to  follow  almost  automat- 
ically. One  result  realized  from  a  uniform  and  an  absolutely 
truthful  system  of  accounts  is  that  railroad  reports  are  now 
reliable  sources  ©f  information  for  investors,  and  have  pro- 
duced a  stability  in  railway  securities  hitherto  unknown.  Ques- 
tionable operations  of  high  finance,  involving  the  undue  infla- 
tion of  the  market  values  oi  railroad  securities,  are  no  longer 
conducted. 

7.  Interstate  carriers  were  prohibited  from  acting  as  dealers 
in  the  commodities  that  they  transport,  a  provision  of  funda- 
mental necessity,  justice  and  importance.  It  restricted  the  rail- 
road to  its  proper  sphere  of  action,  namely,  transportation,  and 
relieved  the  public  of  that  peculiarly  unfair  and  destructive 
competition  which  results  when  a  railroad  becomes  at  once 
buyer,  carrier  and  seller. 


!^C  REGULATION'  OF  CORPO- ATTOXS. 

The  Mann-Elking  Law. 

With  the  enactment  of  this  far-reaching  legislation  on  June 
18,  1910,  under  the  leadership  of  President  Taft,  commenced 
a  new  era  of  efficiency  and  effectiveness  in  the  regulation  by 
(lo\ eminent  of  inlerstate  carriers  and  interstate  traffic.  Besides 
enlarging  its  jurisdiction  the  new  law  materially  increased  the 
(  ontrol  of  the  Commission  over  the  rates  and  practices  of  inter- 
state carriers.  One  of  the  more  important  changes  which  it 
ctVcct.d  was  the  creation  of  a  special  tribunal  with  power  to 
review  the  orders  of  the  Interstate  Commerce  Commission. 
Off) 

-Utah 

B    h  THE   COMMERCE    COURT. 

This  court  is  composed  of  five  circuit  judges  appointed  in  the 
first  instance  by  the  President,  the  law  providing  that  their 
successors  shall  be  appointed  by  the  Chief  Justice  of  the  United 
States  for  terms  of  five  years  from  among  the  circuit  judges. 
In  the  creation  of  this  court  a  remedy  was  found  for  a-  situa- 
tion that  had  frequently  occasioned  serious  embarrassment  to 
the  Commission  and  to  the  transportation  and  shipping  in- 
terests of  the  country.  The  procedure  for  the  enforcement  of 
the  orders  of  the  Commission  and  for  testing  their  soundness 
in  law  had  theretofore  been  unsatisfactory  and  was  often  at- 
t eiuled  by  vexatious  delays.  Great  expense,  duplication  of  work, 
loss  of  time  and  conflict  in  decision  were  the  natural  conse- 
quences of  a  system  which  permitted  appeals  from  the  orders 
of  the  Commission  to  federal  circuit  courts  in  different  parts 
of  the  country.  These  complications  have  been  obviated  by 
the  new  court.  A  striking  illustration  of  the  embarrassments 
arising  under  the  previous  procedure  is  afforded  by  the  im- 
portant and  well-known  Burnham-Hanna-Munger  case.  The  or- 
der of  the  Commission  in  that  proceeding,  requiring  the  car- 
riers to  reduce  their  rates  between  the  Mississippi  and  the 
Missouri  rivers  on  traffic  from  the  east,  was  to  become  effective 
on  October  26,  1908,  and  under  the  provisions  of  the  law  could 
remain  in  force  for  a  period  of  only  two  years  from  that  date. 
Suit  was  brought  by  the  defendant  railroads  in  a  federal  cir- 
cuit court,  and  the  enforcement  of  the  order  was  enjoined.  It 
was  not  until  the  fall  of  1910  that  the  litigation  was  finally 
ended  in  the  Supreme  Court  of  the  United  States,  where  the 
lower  court  was  reversed  and  the  finding  and  order  of  the  Com- 
mission affirmed.  The  railroad  companies  thereupon  published 
the  rates  required  under  the  Commission's  order,  but  they  re- 
mained in  effect  only  ten  days  before  the  order  expired  under 
the  two  year  limitation  mentioned.  At  the  end  of  that  brief 
period  the  higher  rates  that  had  been  condemned  by  the  Com- 
mission were  restored  by  the  carriers.  The  litigation  had  ex- 
tended over  practically  the  entire  period  of  two  years  during 
which  the  lower  rates  ordered  by  the  Commission  should  have 
been  in  effect.  The  creation  of  the  Commerce  Court  and  the 
provision  that  appeals  from  it  shall  have  priority  before  the 
Supreme  Court  have  eliminated  such  delays  and  enable  final 
conclusions  in  litigation  affecting  the  commerce  of  the  country 
to  be  reached  within  a  period  of  a  few  months. 

vf')tnln;-!(l  r:    in:    hni. 

Won  SUSPENSION   OF  RATES. 

A  power  of  fundamental  importance  conferred  upon  the  Com- 
mission was  that  giving  it  authority  to  suspend  and  investigate 
new  schedules  of  rates  and  fares  before  they  become  effective. 
Such  an  order  when  entered  by  the  Commission  is  equivalent  to 
an  injunction  and  during  the  period  of  suspension  the  old  rates, 
which  ordinarily  are  lower,  remain  in  effect.  This  amendment 
casts  upon  the  carriers  the  burden  of  justifying  their  proposed 
increased  rates,  and  relieves  the  shippers  of  the  extensive  and 
often  unduly  burdensome  and  costly  investigations  that  would 
necessarily  be  required  to  enable  them  to  prove  that  the  pro- 
posed new  rates  are  unreasonable.  When  a  carrier  proposes  to 
increase   its   charges   it  cannot   fairly   regard   it   as    a   hardship 


REGULATION  OP  CORPORATIONS.  113 

when   required   to   explain   the   reasons   for   that   course   and   to 
justify  it. 

In  the  exercise  of  this  new  and  beneficent  power  the  Com- 
mission up  to  July  1,  1912,  has  entered  134  orders  suspend ing 
tariffs  of  increased  rates  pending  investigation.  In  26  instances 
the  rates  proposed  in  the  'suspended  schedules  were  found  to 
be  unreasonable  and  the  Commission  ordered  their  permanent 
cancellation ;  in  42  instances  the  new  rates  were  allowed  to 
become  effective  as  reasonable  rates ;  in  seven  cases  the  tariffs 
of  higher  rates  were  approved  in  part  and  condemned  in  part ; 
and  in  five  cases  the  defendant  carriers  after  the  suspension  of 
their  schedules  of  increased  rates  but  prior  to  a  hearing  volun- 
tarily cancelled  the  new  tariffs  and  continued-  their  current 
rates  in  force.  The  remaining  54  cases  in  which  this  power  has 
been  exercised  by  the  Commission  are  still  under  investigation, 
the  old  rates  remaining  in  effect  and  the  higher  proposed  rates 
being  under  suspension. 

OTHER  CHANGES  IN  THE  LAW  UNDER  THE  MANN-ELKINS  ACT. 

1.  Another  significant  and  useful  provision  in  the  amendatory 
act  of  1910  authorizes  the  Commission  on  its  own  initiative  to 
institute  investigations  respecting  the  rates  and  practices  of 
carriers,  and  if  found  to  be  unjust,  discriminatory,  preferential 
or  otherwise  unlawful,  to  determine  and  prescribe  a  just  and 
reasonable  rate  or  practice  for  the  future.  Up  to  June  30,  1912, 
59  such  proceedings  of  inquiry  had  been  docketed  by  the  Com- 
mission on  its  own  motion,  in  many  of  which  the  Commission 
has  investigated  and  corrected  unreasonable  rates  and  irregular 
practices.  The  so-called  eastern  and  western  rate  advance  cases, 
which  are  among  the  most  important  proceedings  that  the  Com- 
mission has  ever  considered,  and  in  which  the  carriers  under- 
took by  new  tariffs  to  impose  higher  rates  upon  practically  the 
entire  commerce  of  the  country,  are  notable  instances  of  in- 
quiries instituted  on  the  motion  of  the  Commission.  The  result 
of  its  exercise  of  the  power  in  those  two  cases  is  that  the  old 
rates  are  still  in  effect  and  the  commerce  of  the  country  has 
been  relieved  of  the  substantial  additional  burdens  proposed  in 
the  new  tariffs  that  were  condemned  by  the  Commission  at  the 
conclusion  of  its  investigations. 

2.  What  is  known  as  the  long  and  short  haul  clause  of  the 
act  forbids  a  carrier  from  charging  more  for  a  shorter  than 
for  a  longer  haul  over  the  same  rails  and  in  the  same  direction. 
An  amendment  to  this  section  authorizes  the  Commission  under 
certain  conditions  to  grant  carriers  relief  from  its  provisions. 
Some  idea  of  the  magnitude  of  the  work  thus  imposed  upon  the 
Commission  may  be  gained  from  the  fact  that  since  this  amend- 
ment took  effect  over  6,580  applications  for  relief  have  been 
filed. 

3.  Under  the  Mann-Elkins  Act  the  shipper  was  not  only  given 
the  right  to  control  and  direct  the  routing  of  his  shipments, 
but  was  protected  in  the  privacy  of  his  commercial  relations  by 
a  provision  making  it  a  misdemeanor  for  a  carrier  or  the  officer 
or  agent  of  a  carrier  to  disclose  to  a  competitor  any  information 
that  may  be  used  to  his  detriment  concerning  the  nature,  kind, 
quantity,  destination,  or  routing  of  any  property  delivered  to 
it  for  interstate  transportation. 

4.  The  right  was  also  given  to  a  shipper  on  written  request 
to  demand  a  written  statement  by  the  carrier  of  the  rate  or 
charge  applicable  to  a  proposed  shipment  over  its  rails ;  and  in 
case  of  its  refusal  to  make  such  a  statement  within  a  reason- 
able time  or  a  misstatement  of  the  applicable  rate,  to  the  dam- 
age of  the  shipper,  the  carrier  was  made  liable  to  a  penalty 
recoverable  by  the  United  States  in  a  civil  action. 

5.  In  the  history  of  transportation  numerous  instances  appear 
where  rail  lines  have  crushed  out  the  competition  of  independent 
water  lines  by  so  reducing  their  rail  rates  as  to  make  it  un- 
profitable and  impossible  for  the  water  line  to  continue  in  busi- 
ness.    The   Mann-Elkins   Act   throws  the  protection   of  the    law 


114  '  REGULATION  OF  CORPORATIONS. 

around  water  lines  by  prohibiting  a  rail  line  that  has  pursued 
that  course  from  restoring-  its  old  rates  until  after  a  hearing 
and  finding  by  the  Commission  that  the  proposed  increased  rates 
are  justified  by  changed  conditions  other  than  the  elimination 
of  the  water  competition. 

6.  By  the  amendment  of  1910  ttte  jurisdiction  of  the  Commis- 
sion was  extended  to  include  telegraph,  telephone  and  cable 
companies.  In  other  ways  that  need  not  be  detailed  here  that 
legislation  substantially  enlarged  the  powers  of  the  Commission 
so  as  to  give  it  more  effective  control  over  the  rates  and  prac- 
tices of  all  the  utilities  named  in  the  act  that  serve  the  inter- 
state public. 

HOURS  OF  SERVICE,   SAFETY  APPLIANCE,   ACCIDENT   AND  BOILER  INSPEC- 
TION   LAWS. 

While  so  adjusting  the  law  as  to  meet  the  requirements  of 
interstate  commerce,  other  acts  have  been  passed  giving  the 
Commission  a  larger  control  in  matters  affecting  the  safety  of 
of  employees  and  the  traveling  public.  In  this  connection  should 
be  mentioned  the  Hours  of  Service  Law,  the  Act  Regulating  the 
Transportation  of  Explosives  and  Dangerous  Articles,  the 
amended  Safety  Appliance  Acts  and  the  Boiler  Inspection  laws. 

The  Hours  of  Service  Law  restricts  the  hours  of  labor  of 
employees  engaged  either  as  train  men  or  as  telegraph  opera- 
tors, and  its  provisions  are  enforced  by  the  Commission.  Al- 
though its  primary  object  is  to  promote  the  safety  of  travelers 
by  limiting  the  hours  of  service  of  employees  within  reasonable 
bounds,  nevertheless  in  its  actual  operation  it  enforces  humane 
and  considerate  treatment  of  employees  as  well  as  the  greater 
safety  of  the  public.;  Upon  the  courage,  fidelity  and  accuracy  of 
these  employees  depends  the  life  of  everyone  who  travels  by 
railroad.  The  propriety  of  this  legislation  needs  no  demonstra- 
tion, and  its  just  enforcement  operates  to  protect  the  rights  of 
employees  so  far  as  they  fall  within  the  jurisdiction  of  the  law. 

These  various  laws  have  been  materially  strengthened  by  judi- 
cial interpretation.  Their  humane  purpose  has  proved  of  incal- 
culable benefit  to  railroad  employees  and  the  public  generally. 
Besides  safeguarding  the  dangerous  and  responsible  work  of 
hundreds  of  thousands  of  the  most  intelligent  employees  of  the 
country,  they  have  given  added  security  to  million  of  travelers. 
In  the  course  of  their  administration  the  Commission  during 
the  past  year  has  inspected  the  boilers  of  3,535  locomotives,  and 
has  inspected  the  safety  appliances  of  487,130  freight  cars, 
16,131  passenger  cars  and  24,999  locomotives. 

The  Results   Obtained. 

A  somewhat  definite  understanding  of  the  more  important  work 
devolving  on  the  Commission,  and  of  its  intimate  relation  to 
the  interstate  commerce  of  the  country  may  be  had  when  its 
varied  activities  in  a  calendar  year  are  enumerated.  During 
the  12  months  ending  on.  November  30,  1911,  507  proceedings 
were  disposed  of  in  formal  decisions,  and  145  cases  of  similar 
character  were  removed  from  the  formal  docket  by  stipulation 
or  on  motion.  During  that  time  881  formal  complaints  were 
filed  and  12  proceedings  of  inquiry  instituted ;  43  proceedings  of 
investigation  and  suspension  of  tariffs  containing  proposed  in- 
creases in  rates  were  ordered;  hearings  of  943  alleged  violations 
of  the  act  were  held  at  various  points  from  the  Atlantic  to  the 
Pacific  and  from  the  Gulf  of  Mexico  to  the  Canadian  border,  in 
which  95,000  pages  of  typewritten  testimony  were  taken.  In- 
formal complaints  aggregating  4,326  in  number  were  the  subject 
of  correspondence  by  the  Commission  with  carriers.  On  the 
special  docket  5,053  claims  were  tiled  and  reparation  amounting 
in  the  aggregate  to  $329,388  was  awarded  to  shippers.  As  many 
as  121,829  tariff  publications  were  filed.:  The  carriers  presented 
5,723  applications  for  relief  from  the  operation  of  the  long  and 
short  haul  provision  of  the  act,  and  450  orders   were  entered 


REGULATION  OF  CORPORATIONS.  115 

*. 

cither  denying  applications  or  prescribing  the  extent  of  the 
relief.  Over  3,600  petitions  for  authority  to  change  rates  on 
less  than  statutory  notice  were  presented  and  considered. 

A  fair  conception  of  the  work  performed  by  the  Commission 
in  the  field  of  regulation  is  not  possible  without  reference  to 
the  results  obtained  where  formal  complaint  is  not  filed  or 
proceedings  of  a  formal  nature  pursued  by  a  shipper.  The  pub- 
lic is  not  advised  of  the  full  extent  of  the  work  accomplished 
in  securing  through  correspondence  the  voluntary  adjustment 
by  carriers  of  questions  in  dispute  with  shippers  relating  to  in- 
terstate transportation.  *  Nor  is  the  public  cognizant  of  the  ex- 
treme importance  and  value  of  these  results  to  the  shipping  and 
traveling  public.  Excluding  the  letters  relating  to  safety  ap- 
pliances, accidents,  statistics,  accounts,  tariffs,  block  signals, 
train  control,  hours  of  service  and  other  related  matters,  there 
were  received  and  recorded  during  the  12  months  ending  on 
November  30,  1911,  107,457  letters,  in  which  shippers  and  travel- 
ers and  others  interested  in  some  way  in  interstate  transporta- 
tion laid  their  grievances  before  the  Commission.  Through  the 
medium  of  the  correspondence  that  ensued  the  settlement  of 
many  matters  more  or  less  vexatious  to  shippers  was  obtained. 
The  questions  thus-  amicably  adjusted  are  not  alone  questions 
affecting  the  interest  of  individuals ;  on  the  contrary,  the  effect 
of  the  action  taken  by  carriers  m  the  adjustment  of  these  com- 
plaints is  often  of  widespread  interest,  and  advantage  to  large 
communities,  if  not  indeed  of  vital  importance  to  considerable 
sections  of  the  country.  Controversies  arising  out  of  the  rela- 
tions between  the  carriers  themselves  are  likewise  in  many  in- 
stances presented  to  the  Commission  for  arbitration,  or  con- 
ference, or  adjustment.  It  is  also  frequently  called  upon  by 
traffic  officials  of  carriers  to  indicate  the  proper  and  lawful 
course  to  be  pursued  in  respect  to  the  application  of  rates  or 
regulations  affecting  transportation,  or  in  respect  to  other  simi- 
lar matters.  It  will  thus  be  seen  that  many  great  benefits 
result  from  the  adjustment  or  settlement  through  correspond- 
ence of  questions  informally  submitted  to  the  Commission  for 
investigation  and  brought  to  a  satisfactory  conclusion  through 
friendly  intervention  between  the  parties  interested.  These  in- 
formal complaints  involve  every  conceivable  subject  connected 
with  the  rates,  methods,  practices  and  service  of  interstate  car- 
riers and  their  relations  with  the  shipping  and  traveling  public. 

PUNISHMENTS   OF   VIOLATIONS   OF  THE  LAW. 

Shortly  after  the  passage  of  the  Hepburn  Act  the  Commission 
prepared  through  its  organization  to  deal  with  criminal  viola- 
tions of  the  act  to  regulate  commerce.  Its  first  investigations 
had  to  do  for  the  most  part  with  direct  rebates,  and  the  criminal 
prosecutions  that  followed  largely  involved  violations  of  that 
nature.  But,  as  heretofore  observed,  the  indictment  and  severe 
fines  imposed  upon  such  offenders  has  resulted  in  the  practical 
suspension  of  violations  of  the  law  in  that  form.  At  this  time 
the  law  is  more  frequently  evaded  through  practices  of  a  more 
complicated  and  indirect  character,  such  as  the  substitution  of 
tonnage  in  transit,  the  leasing  by  carriers  of  valuable  terminal 
and  other  properties  to  favored  shippers  at  nominal  rentals,  and 
through  other  devices  by  which  unlawful  preferences  are  accom- 
plished and  unlawful  practices  are  brought  to  a  successful  con- 
clusion in  the  interest  of  favored  shippers.  Not  infrequently 
these  devices  are  legal  in  form  although  through  them  unlawful 
results  are  accomplished.  Violations  of  this  sort  were  early 
anticipated  by  the  Commission  and  many  cases-  resulting  in  in- 
dictments and  severe  penalties  have  been  brought  by  it  to  the 
attention  of  the  courts. 

For  the  enforcement  of  the  criminal  sections  of  the  law  the 
Commission  has  at  all  times  depended  upon  the  cooperation  of 
the  Department  of  Justice.  Through  its  aid  in  sustaining  and 
encouraging  the  Commission  in  its  difficult  work  of  investigating 
such  offenses  and  bringing  them  before  the  courts  the  law  has 


116  REGULATION  OF  CORPORATIONS. 

been  enforced  with  commendable  ability  and  notable  success. 
The  cordial  relations  constantly  maintained  between  the  De- 
partment of  Justice  and  the  Commission  and  their  common  pur- 
pose to  promote  the  public  welfare  by  the  strict  enforcement 
of  the  law  have  tended  to  free  interstate  commerce  from  un- 
lawful and  discriminatory  and  preferential  practices  and  to 
open  to  the  general  public  on  a  basis  of  practical  equality  all 
the  highways  conducted  by  interstate  carriers.  The  prosecu- 
tions conducted  by  the  Department  of  Justice  upon  information 
furnished  to  it  by  the  Commission  have  been  about  equally 
divided  between  carriers  and  shippers.  Since  the  passage  of 
the  Hepburn  Act  the  Department  has  obtained  nearly  240  in- 
dictments for  violations  of  the  act ;  and  in  such  of  these  cases 
as  have  been  finally  settled  fines  ranging  from  $25  to  $120,000 
have  been  assessed  against  the  convicted  offenders,  the  gross 
amount  of  such  penalties  approximating  $1,500,000. 


I  am  a  protectionist  because  our  country  has  prospered  with 
protection  and  languished  without  It. — Hon.  B.  F.  Jones,  In  the 
"American  Economist." 

It  appears  that  in  all  commercial  countries  export  prices  are 
at  times  from  various  causes  lower  than  domestic  prices. — Hon. 
10.    I,.  Hamilton,  In  Congress,  April  14,  1904. 

The  United  States  is  a  continental  nation  and  should  adopt  a 
continental  policy.  Free  trade  Is  adapted  only  to  Insular  nations, 
and  no  continental  nation  has  adopted  a  free-trade  policy. — Ex- 
President  Hill,  of  the  University  of  Rochester,  now  ambassador  to 
Germany. 

If  by  asserting  complete  Federal  control  over  the  Interstate 
railways  of  the  country  we  can  suppress  secret  rebates  and  dis- 
criminations of  other  kinds,  we  shall  have  gone  a  long  way  in 
the  suppression  of  the  unlawful  trusts. — Hon.  Win.  H.  Tuft,  at 
Columbus,    Ohio. 

The  millions  we  formerly  sent  to  aliens  in  alien  lands  to  pay 
them  for  making  tin  plate  for  us  we  now  pay  to  our  own  country- 
men in  the  United  States;  we  have  the  tin  plate  and  we  have  the 
money  expended  for  tin  plate  besides. — Hon.  Win.  S.  Greene,  in 
Congress,  April  28,  1004. 

The  highest  claim  of  William  MoKinley  for  the  gratitude  of  his 
countrymen  is  that,  in  spite  of  the  abuse  and  contumely  that  was 
heaped  upon  his  head  for  this  policy,  he  placed  our  country  in  the 
forefront  of  nations  as  a  civili^er  and  uplifter  of  unfortunate 
peoples. — Hon.  Win.   H.   Taft,   at   Cleveland,    Ohio. 

I  believe  our  strong  party  with  its  great  principles  is  only  in 
its  infancy.  Onr  glory  as  a  nation  has  but  just  begun.  There 
are  mighty  problems  yet  to  be  solved,  grave  questions  to  be 
answered,  complex  Issues  to  be  wrought  out,  but  I  believe  we  can 
trust  the  Grand  Old  Party  and  Its  leaders  to  care  for  the  future 
of  our  Nation  and  of  our  people  as  it  has  cared  for  them  so  well 
in  the  past. — Hon.  James   S.   Sherman. 

Think  of  it,  you  producers  and  manufacturers  and  merchants 
and  traders  and  bankers  and  transporters,  think  of  it!  The  mar- 
ket of  our  own  country,  the  home  market,  in  which  you  can  trans- 
port your  goods  from  the  door  of  the  factory  to  the  door  of  the 
consumer,  without  breaking  bulk  a  single  time,  Is  equal  to  the  entire 
international   commerce   of  the  world. — O.   P.   Austin,   »t   Rochester. 

The  recall,  I  venture  to  predict,  if  adopted  frill  prove  a 
disappointment  throughout.  It  will  not  serve  to  raise  the 
standard  of  public  life;  it  will  not  serve  to  improve  the 
character  of  officials,  but,  on  the  contrary,  it  will  make 
trimmers  of  men  who  accept  office,  if  they  are  not  that 
when  they  accept  office,  and  it  will  deter  men  of  independ- 
ence and  capacity,  who  are  not  seeking  place,  from  accept- 
ing positions  of  trust.— Hon.  Charles  JVagel,  Secretary  of 
Commerce   and   Labor. 

Conceding  that  any  of  these  ideas  may  And  application 
in  local  conditions,  how  will  these  advocates  apply  their 
ideas  to  the  activities  of  the  National  (;»verumen<f  *  *  * 
Is  it  possible  that,  not  content  with  the  present  agitation, 
opportunity  for  tunnoi*.  indecision,  and  unrest  shall  be 
multiplied?  Is  it  possible  thai  they  contemplate  the  re- 
call of  Federal  officials  f  Is  It  to  be  applied  to  Congress- 
men in  their  respective  districts?  is  it  to  be  applied  to 
Senators,  and  is  it  to  be  applied  to  President  i— Secretary 
Nagel    at    Indianapolis. 


LABOR. 


A     COMPARISON     OF     THE     ATTITUDE     AND     ACTION    OP    THE 
REPUBLICAN    AND    DEMOCRATIC    PARTIES    RESPEC- 
TIVELY  WITH    REFERENCE    TO    LABOR    AND 
LABOR    QUESTIONS. 

State   Labor  Legislation. 

When  a  political  party  assumes  the  role  of  champion  of  the 
common  people,  it  is  but  natural  that  we  should  expect  some 
tangible  evidence  of  such  championship  on  the  part  of  those  of 
its  representatives  who  are  in  a  position  to  act.  It  has  been 
shown  what  the  Republican  Federal  Congress  has  done  in  the 
way  of  protective  labor  and  other  social  legislation  during  the 
years  when  the  Republicans  were  in  control.  Of  course,  it  may 
be  claimed  that  as  much  or  more  would  have  been  done  along 
these  lines  had  the  Democrats  been  in  a  position  to  enact  Federal 
legislation.  A  fair  idea  of  what  they  would  have  done,  had  they 
been  in  control  of  the  Federal  legislative  power,  can  be  obtained 
from  a  showing  of  what  they  actually  have  done  where  they  have 
had  the  opportunity,  namely,  in  the  State  legislatures. 

The  bulk  of  the  labor  legislation  in  this  country  is  of  such 
a  character  as  to  be  strictly  within  the  province  of  the  indi- 
vidual states,  the  powers  of  the  Federal  Government  being  re-, 
stricted  in  this  respect  to  employment  in  the  Government  Service 
and  in  interstate  commerce,  and  to  seamen,  immigration,  etc. 
We  must,  therefore,  draw  our  conclusions  concerning  the  al- 
titude of  the  two  parties  toward  the  people  by  the  character 
of  the  protective  and  other  social  legislation  enacted  in  the  23 
Republican  and  the  23  Democratic  states,  respectively.  For  the 
purpose  of  the  present  study,  all  states  which  had  Republican 
legislatures  on  January  1,  1912,  are  regarded  as  Republican, 
states,  and  all  states  having  Democratic  legislatures  on  that 
date  are  regarded  as  Democratic  states.  This  arrangement  places 
a  number  of  states  in  the  Democratic  column  which  have  usually 
been  Republican  and  which,  while  in  Republican  control,  were 
among  the  most  prolific  in  the  enactment  of  effective  labor  legis- 
lation, namely :  Ohio,  Indiana,  Maine,  Nebraska,  and  West  Vir- 
ginia. Notwithstanding  this  arrangement,  however,  an  analysis 
of  the  legislation  of  these  two  groups  of  states  shows  that  the 
Republican  states  have  in  almost  every  case  exceeded  the  Demo- 
cratic states  in  making  provision  for  the  benefit  of  the  wage 
workers.  This  is  shown  in  the  statement  on  page  118,  which  in- 
dicates in  brief  the  character  of  labor  legislation  in  force  on 
January  1,  1912,  in  each  of  the  forty-six  states  having  legisla- 
tures at  that  time. 

Accident   Insurance. 

Hardships  have  often  resulted  to  wage-workers  carrying  ac- 
cident policies,  because  when  they  changed  their  occupations  to 
more  hazardous  ones  after  making  the  insurance  contracts  they 
forfeited  the  right  to  the  insurance,  or  at  most  received  a  rebate 
on  the  premium  paid.  Eleven  states  have  remedied  this  con- 
dition by  enacting  laws  requiring  each  accident  policy  to  contain 
a  provision  to  the  effect  that  if  an  insured  person  changes  his 
occupation  to  one  more  hazardous  he  shall  not  thereby  forfeit 
his  right  to  insurance,  but  shall  receive  an  amount  equal  to  that 
which  the  sum  paid  by  him  in  premiums  would  have  purchased 
in  the  more  hazardous  employment.*.  Of  these  eleven  states  seven. 
are  Republican  and  four  are  Democratic,  two  of  the  latter  being 
Ohio  and  Indiana. 

117 


LABOR. 


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Legislation  in  force  January  1,  1912. 

Accidents:    Protecting  employees  in  their  contracts   for  acci- 
dent insurance  

Requiring  reports  and  investigation  of  accidents  in  industries 
Requiring  reports  and  investigation  of  accidents  on  railways 

Children:     Limiting  the  hours  of  labor  of  young  persons 

Prohibiting  employment  of  children  in  dangerous  occupations 

Prohibiting  employment  of  children  in  bar-rooms 

Regulating  employment  of  children  in  street  trades 

Restricting  employment  of  illiterate  children 

Prohibiting  night  work  by  young  persons 

Factories  and  workshops:     Regulating  labor  in  sweatshops 

Providing  for  inspection  of  and  regulating  bakeries 

Requiring  proper  ventilation  and  sanitation  of  factories  and 

work  rooms  

^Regulating  use  of  cellars  and  basements  for  workshops 

Requiring  flre  escapes  on  factories,  etc 

Hours  of  labor:    Providing  for  an  eight-hour  day 

Limiting  hours  of  labor  on  public  works 

Limiting  hours  of  labor  on  street  railways 

Requiring  that  time  for  meals  be  allowed  employees 

Labor  organizations:  Protecting  employees  as  members  of  la- 
bor organizations  

Prohibiting  use  of  false  cards,  etc.,  of  labor  organizations 

Occupational   diseases:     Requiring  reports  of  occupa'l  dis< 

Paym't  of  wages:     Requir'g  wages  to  be  paid  at  stated  intervals 

Safety  of  employees:  Requiring  guards  for  dangerous  machin'y 
Requiring  the  protection  of  employees  on  buildings 

Women:    Prohibiting  employment  of  women  in  bar-rooms 

Limiting  hours  of  labor  of  women 

Requiring  seats  for  females  in  shops  or  mercantile  estab'm'ts 

...  LABOR.  .  119 

Reporting  of  Accidents. 

Twenty  states  have  enacted  laws  requiring-  employers  to  report 
accidents  in  industrial  establishments  which  result  in  death  or 
disability.  Of  these  twelve  are  Eepublican  and  eight  are  Demo- 
cratic, the  latter  including-  Indiana,  Maine,  Nebraska,  and  Ohib. 

Twenty-six  states  require  similar  reports  concerning  accidents 
to  employees  on  railways.  Of  these  sixteen  are  Eepublican  and 
ten  are  Democratic,  the  latter  including-  Indiana  and  Ohio. 

Workmen's   Compensation. 

The  old  rule  of  employer's  liability  which  until  a  few  years 
ago  applied  in  all  the  states  of  the  Union,  requires  an  employee 
injured  by  accident  during  his  employment  to  bring  suit  and 
prove  negligence  on  the  part  of  his  employer  in  order  to  recover 
damages  from  the  latter.  This  rule,  which  works  untold  hard- 
ship upon  workmen,  especially  those  engaged  in  hazardous  em- 
ployments, was  changed  many  years  ago  in  nearly  all  the  other 
civilized  countries  of  the  world  by  the  enactment  of  workmen's 
compensation  laws.  In  the  United  States  there  has  been  a 
movement  during  recent  years  to  substitute  for  this  old  rule  a 
system  of  compensation  or  insurance  by  means  of  which  persons 
suffering  from  the  consequences  of  industrial  accidents  shall 
receive  an  equitable  relief  for  themselves,  or,  in  case  of  fatal 
injuries,  for  those  dependent  upon  them.  Such  a  system  pro- 
vides a  definite  sum  as  compensation  for  injuries  without  involv- 
ing a  suit  at  law  and  without  reference  to  the  negligence  of  the 
employer.  Thirteen  states  have  enacted  such  laws,  of  which  nine 
are  Republican  and  four  are  Democratic. 

Eleven  other  states  have  appointed  commissions  to  investigate 
the  subject  of  such  relief  with  the  view  of  considering  the  en- 
actment of  such  legislation.  Of  these  seven  are  Eepublican  and 
four  are  Democratic  states. 

Child    Labor. 

No  form  of  labor  legislation  has  occupied  public  attention  so 
much  in  recent  years  as  the  regulation  of  the  employment  of 
children.  Through  the  activities  of  the  National  Child  Labor 
Committee  and  other  organizations,  all  the  states  of  the  Union 
have  enacted  child  labor  laws,  the  last  to  fall  into  line  being 
some  of  the  Southern  states  and  one  Democratic  Western  State. 

Thirty-eight  states  have  enacted  laws  limiting  the  hours  of 
labor  of  children  or  young  persons,  of  which  twenty  are  Eepub- 
lican and  eighteen  Democratic. 

Thirty-nine  states  have  laws  prohibiting  the  employment  of 
children  or  young  persons  in  hazardous  occupations,  such  as 
operating  dangerous  machinery,  cleaning  machinery  in  motion, 
etc.,  of  which  tweniy-one  are  Eepublican  and  eighteen  are 
Democratic   states. 

Fifteen  states  prohibit  the  employment  of  young  persons  in 
bar  rooms,  of  which  eleven  are  Eepublican  and  four  are  Demo- 
cratic. 

Thirteen  states  regulate  or  restrict  the  employment  of  children 
in  street  trades,  of  which  seven  are  Eepublican  and  six  are  Demo- 
cratic. 

Twenty-six  states  have  laws  relating  to  the  employment  of 
illiterate  children,  of  which  fourteen  are  Eepublican  and  twelve 
are  Democratic. 

Thirty-eight  states  prohibit  the  employment  of  young  persons* 
at  night  work,  of  which  states  twenty-one  are  Eepublican  and 
seventeen  are  Democratic. 

Factories  and  Workshops. 

Among  the  most  important  objects  of  legislation  for  the  pro- 
tection of  wage-workers  are  provisions  for  the  health  and  safety 
of  employees. 

Sweatshops:  There  is  nothing  which  tends  more  to  degrade 
human  beings  or  to  menace  the  health  of  a  community  than  the 
crowding  of  persons  into  filthy  workshops,  where  they  are  often 
Compelled  to  work,  eat  and  sleep  and  where  the  hours  of  labor 


120  LABOR. 

are  so  long-  that  the  victims,  who  are  usually  foreigners,  are 
shut  out  from  all  opportunities  for  education  or  improvement 
of  any  kind.  Twelve  states  have  enacted  laws  for  the  regulation 
and  inspection  of  sweatshops  and  prohibiting  the  evil  features 
of  the  same ;  of  these  eight  are  Republican  and  four  are  Demo- 
cratic, two  of  the  latter  being  Indiana  and  Ohio. 

Bakeries:  The  sanitary  condition  of  bakeries  is  a  matter  of 
vital  importance  not  only  to  the  employees,  but  to  the  millions 
of  consumers,  whose  health  is  menaced  by  uncleanly  and  disease 
breeding  conditions  that  often  exist  there.  Sixteen  states  have 
■enacted  laws  for  the  inspection  and  regulation  of  bakeries,  of 
which  eleven  are  Republican  and  five  are  Democratic,  two  of  the 
five  being  Indiana  and  Ohio. 

Ventilation  and  Sanitation:  Twenty-six  states  have  made  pro- 
vision for  the  proper  ventilation  of  factories  and  workshops  and 
have  prescribed  regulations  for  the  enforcement  of  other  sanitary 
measures  in  places  where  people  are  employed.  Of  these  fifteen 
are  Republican  and  eleven  are  Democratic  states,  the  latter  in- 
cluding Indiana,  Nebraska,  Ohio  and  West  Virginia. 

Cellars  and  Basements:  The  use  of  damp,  ill-ventilated  cellars 
and  basements  as  places  of  employment  is  often  the  cause  of 
disease  and  death  not  only  to  the  employees,  but  also  to  .the 
consumers  of  goods  manufactured  there.  Twelve  states  have 
enacted  laws  regulating  or  prohibiting  the  use  of  cellars  and 
basements  for  workshops.  Of  these  eight  are  Republican  and 
four  are  Democratic  states,  the  latter  including  Indiana  and 
Ohio. 

Fire-escapes:  It  is  needless  to  comment  upon  the  necessity 
of  having  fire-escapes  on  factories  as  a  protection  to  emploj^ees. 
Thirty-six  states  have  enacted  laws  requiring  fire-escapes  on  fac- 
tories and  other  places  where  persons  are  employed.  Of  these 
eighteen  are  Republican  and  fifteen  are  Democratic  states,  the 
latter  including  Indiana,  Maine,  Nebraska,  Ohio  and  West  Vir- 
ginia. 

Hours    of    Labor. 

For  many  years  the  labor  organizations  have  been  striving  for 
an  eight-hour  day  in  all  industries,  and  with  this  end  in  view 
have  been  endeavoring  to  secure  legislation  prohibiting  labor  on 
Government  works  and  on  public  contracts  for  more  than  eight 
hours  per  day,  and  placing  similar  limitations  upon  the  hours 
of  labor  in  certain  occupations  where  long  continuous  work  is 
injurious  to  health.  Thirty  states  have  enacted  laws  providing 
for  an  eight-hour  day  in  certain  occupations,  of  which  sixteen 
are  Republican  and  fourteen  are  Democratic.  Twenty -three 
states  have  laws  limiting  the  hours  of  labor  on  public  works, 
usually  to  eight  per  day.  Of  these  states  fourteen  are  Repub- 
lican, and  nine  are  Democratic.  Ten  states  have  enacted  laws 
limiting  the  hours  of  labor  on  street  railways,  of  which  states 
seven  are  Republican  and  three  are  Democratic.  Eleven  states 
have  laws  requiring  employers  to  allow  their  employees  time  for 
meals.  Of  these  eight  are  Republican  and  three  are  Democratic 
states. 

Protection    of   Members    of   Labor    Organizations. 

Eighteen  states  have  enacted  laws,  that  are  now  in  force,  which 
prohibit  employers  from  discharging  persons  on  account  of  mem- 
bership in  labor  organizations  or  from  compelling  persons  to 
agree  not  to  become  members  of  labor  organizations  as  a  con- 
dition of  securing  employment  or  continuing  in  their  employ. 
Of  these  states  eleven  are  Republican  and  seven  are  Democratic, 
the  latter  including  Indiana  and  Ohio. 

Nine  states  have  laws  making  it  a  misdemeanor  to  counter- 
feit, forge  or  alter  cards  of  membership  in  labor  organizations 
with  the  intent  to  defraud.  Of  these  six'  ere  Republican  and 
three  are  Democratic  states. 

Occnpational    Diseases. 

In  recent  years  much  attention  has  been  given  to  the  subject 
of  occupational  diseases,  that  is,  diseases  due  directly  to  the 
handling  of  poisons  such  as  lead,  phosphorus,  arsenic,  mercury 
and  other  chemicals,  or  to  working  in  the  presence  of  poisonous 


LABOR.  121 

fumes,  dust,  etc.  During-  the  year  1911  eight  states  enacted 
laws  dealing-  with  this  subject,  in  some  cases  requiring  physi- 
cians to  report  all  such  diseases,  in  some  requiring  periodical 
examinations  of  persons  employed  in  such  industries,  and  in 
some  cases  prescribing  preventative  measures.  Of  these  states 
seven  are  Republican  and  one  (Ohio)  >s  a  Democratic  state. 

Wage   Payments. 

In  order  to  insure  the  prompt  payment  of  workingmen's  wages 
in  cash  when  due,  twenty-seven  states  have  enacted  laws  requir- 
ing employers  to  pay  wages  at  stated  intervals,  that  is,  weekly 
or  fortnightly,  and  in  some  instances  prohibiting  a  longer 
period  than  one  month  between  pay  days.  Of  these  fourteen  are 
Republican  and  thirteen  are  Democratic  states,  the  latter  includ- 
ing Indiana,  Maine,  Ohio  and  West  Virginia. 

Safety  of  Employees. 

Thousands  of  people  are  maimed  or  killed  each  year  in  fac- 
tories, workshops  and  on  buildings  because  employers  do  not 
take  the  precaution  of  placing  guards  on  dangerous  machinery 
or  adequate  scaffolding  on  buildings  under  construction.  Twenty- 
four  states  have  enacted  laws  requiring  employers  to  reduce  the 
liability  to  injury  by  having  proper  guards  placed  on  all  danger- 
ous machinery.  Of  these  states  fourteen  are  Republican  and 
ten  are  Democratic,  the  latter  including  Indiana,  Nebraska,  Ohio 
and  West  Virginia. 

Nineteen  states  have  laws  requiring  adequate  protection  on 
the  scaffolding  and  staging,  wherever  buildings  are  constructed, 
repaired  or  painted,  so  as  to  prevent  employees,  as  far  as  pos- 
sible, from  falling.  Of  these  eleven  are  Republican  and  eight 
Democratic  states,  the  latter  including  Indiana,  Nebraska  and 
Ohio. 

Woman    Labor. 

The  protection  of  women  who  are  compelled  to  earn  their 
living  by  working  in  factories,  shops  and  stores  is  regarded  in 
every  civilized  country  as  one  of  the  most  important  objects  of 
labor  legislation. 

Barrooms :  Twelve  states  prohibit  the  employment  of  women 
in  barrooms.  Eight  of  these  are  Republican  and  four  are  Demo- 
cratic states. 

Hours  of  Labor:  Twenty-eight  states  have  placed  a  limit  upon 
the  number  of  hours  per  day  or  per  week  that  women  may  be 
employed.  Seventeen  of  these  are  Republican  and  eleven  are 
Democratic  states,  the  latter  including  Indiana,  Maine,  Nebraska 
and  Ohio. 

Night  Work:  Seven  states  have  laws  prohibiting  women  from 
working  at  night.  Four  of  these  are  Republican  and  three  Demo- 
cratic states,  the  latter  including  Indiana  and  Nebraska. 

Seats  for  Females:  One  of  the  greatest  hardships  for  women 
who  are  employed  is  for  them  to  be  compelled  to  stand  all  day 
while  at  work.  Thirty-seven  states  have  enacted  laws  requiring 
employers  of  labor  in  shops  or  stores  to  provide  seats  for  female 
employees.  Of  these  twenty  are  Republican  and  seventeen  are 
Democratic  states,  the  latter  including  Indiana,  Maine,  Nebraska, 
Ohio  and  West  Virginia,  which  are  ordinarily  Republican  states, 
but  which  at  present  have  Democratic  legislatures. 

(Arizona  and  New  Mexico  were  not  included  in  the  above  dis- 
cussion because  they  did  not  have  State  legislatures  in  1911.) 

Railway  Labor. 

A  careful  study  of  the  wages  of  railway  employees  in  the 
United  States  and  the  principal  foreign  countries  based  entirely 
upon  official  statistics,  published  by  the  respective  governments, 
was  recently  made  by  the  Bureau  of  Railway  Economics.  While 
this  Bureau  is  not  a  governmental  or  official  organization,  its 
figures  and  statements  are  largely  based  upon  official  reports 
and  publications,  and  the  accuracy  of  statement  or  fairness  of 
conclusion  has  never,  so  far  as  is  known,  been  called  in  question. 
The  study  throws  some  important  light  upon  the  difference  be- 


122 


LABOR. 


tween  the  treatment  accorded  railway  workers  in  onr  country 
and  in  the  foreign  countries  where  the  railways  are  either  owned 
by  the  governments,  or  are  perhaps  controlled  in  a  larger  measure 
than  they  are  in  the  United  States.  This  study  is  particularly 
important  when  we  consider  that  the  railways  in  this  country 
employ  over  one  and  one-half  million  persons,  and  if  we  count 
their  families  and  dependents  at,  say,  three  for  each  employee, 
we  may  assume  that  at  least  six  millions  of  our  people  are 
dependent  upon  railway  wages.  Furthermore,  as  all  the  gov- 
ernments mentioned  officially  collect  the  wage  statistics  of  their 
railways,  the  wage  data  are  perhaps  more  complete  and  reliable 
than  those  of  any  other  industry. 

In  summarizing  the  results  of  this  study  the  report  says : 

"The  average  daily  compensation  'of  railway  employees  of  all  classes 
for  the  year  1910  was  in  the  United  States,  $2.23  ;  in  the  United  King- 
dom, $1.05 ;  excluding  supplementary  allowances  negligibly  affecting  the 
average,  it  was  in  Prussia-Hesse  81  cents,  and  in  Austria  89  cents.  The 
lowest  paid  railway  employee  in  the  United  States,  the  ordinary  track- 
man, receives  a  greater  compensation  than  many  of  the  railway  employees 
of  France,  even  those  of  higher  grades  and  with  responsible  duties.  The 
compensation  of  railway  employees  is  from  two  to  three  times  as  high 
in  the  United  States  as  in  Italy. 

"A  recent  report  of  the  Board  of  Trade  on  railway  wages  shows  that 
the  average  weekly  pay  of  enginemen  in  the  United  Kingdom  in  1907 
was  $11.17  ;  of  firemen,  $6.67.  In  the  same  year  enginemen  on  American 
railways  received  an  average  weekly  compensation  of  $25.80,  counting 
six  days  to  the  week,  and  firemen  $15.24.  Recent  returns  make  it 
clear  that  in  1912  enginemen  and  firemen  in  the  United  States  are  com- 
pensated at  rates  of  pay  for  specific  runs  that  are  two,  three  and  four 
times  as  high  as  the  corresponding  rates  on  representative  English  rail- 
ways. The  annual  compensation  of  enginemen  in  the  United  States,  as 
reported  by  two  representative  railway  companies,  now  ranges  from  $1,100 
in  switching  service  to  over  $2,800  in  passenger  service,  and  of  firemen 
from  $700   in   switching  service  to   over   $1,700   in   passenger  service. 

"For  continental  Europe  official  returns  in  requisite  detail  are  not  avail- 
able for  a  later  year  than  1908.  The  salaries  and  allowances  of  the 
typical  engineman  in  Germany  amounted  for  that  year  to  $646.88,  in 
Austria  to  $870.80 ;  'of  a  foreman  in  Germany  to  $424.59,  in  Austria 
to  $532.03.  The  annual  compensati'on  of  enginemen  on  two  of  the 
the  principal  railways  of  France  ranged  in  1908  from  $505.66  to  960.91, 
and  of  firemen  from  $324.24  to  $595.98.  In  Italy  enginemen  received 
in  1908,  salary  and  allowance  included,  from  $581.10  to  $812.70  a  year; 
firemen,  from  $330.30  to  $475.05  a  year.  In  these  continental  countries 
the   maximum   compensation   is   received   ouly    after   many   years   of   service. 

"The  average  annual  compensation  of  enginemen  in  the  United  States 
in  1908,  on  an  estimated  basis  of  300  days'  service,  was  $1,335  ;  of 
firemen,  $792.  In  this  country  the  rate  of  compensation  to  these  employees 
does   not   depend   on   length   of   service." 


Railway    Wages    in    the    United    States    and    Great    Britain 

Compared. 

Going  more  into  detail  we  find  from  this  report  (from  which 
both  the  tables  and  the  text  analysis  are  quoted)  that  the  wages 
of  the  principal  railway  occupations  which  were  comparable  in 
the  United  States  and  Great  Britain  were  as  follows  in  the 
latest  year  for  which  the  statistical  data  were  available : 

The  returns  in  each  case  are  given  as  actual  earnings,  except 
that  uniform,  housing  and  minor  allowances,  which  averaged 
about  ten  cents  per  man  per  week  in  the  United  Kingdom,  are 
not  Included.  The  British  returns  have  been  reduced  to  a  per 
diem  basis  by  dividing  the  weekly  earnings  by  six: 

Average  Daily  Earnings. 


Occupation. 

United  States, 
1907-8. 

United  Kingdom. 
October,  1907. 

All  occupations  (except  officers  and  clerks). 

r 

$2.19 
1.82 
4.45 
2.64 
3.81 
2.60 
2.95 
2.  tO 
2.12 
1.45 

1.78 
1.97 

, 

$1,048 
0.90 

1.86 

1.11 

Conductors  

Other  trainmen _    _ 

1.23 
1.25 

Machinists  

1.285 
IJ286 

Other  shopmen 

0.88 

Trackmen  (other  than  section  foremen) 

Switch     tenders,     crossing     tenders     and 
watchmen . 

0.89 
1.07 

"All  other  employees  and  laborers" 

0.99 

LABOR. 


123 


The  average  daily  earnings  of  railway  employees  in  1907 
amounted  to  $2.19  in  the  United  States  and  $1,048  in  the  United 
Kingdom,  the  earnings  for  the  United  States  being  109  per  cent 
greater  than  for  the  United  Kingdom.  If  the  value  of  all  extra 
allowances  for  uniform,  housing,  etc.,  be  added  to  the  English 
earnings,  the  American  compensation  is  still  the  greater  by 
about  100  per  cent.  Roughly  the  American  railway  employee 
was  paid  in  1907-8  twice  as  much  per  day  as  the  English  railway 
employee. 

For  the  separate  occupation  classes,  the  pay  received  in  the 
United  States  is  higher  than  the  pay  of  the  corresponding  classes 
in  the  United  Kingdom  by  the  following  percentage* : 

Per  cent. 

Conductors   209.8 

Enginemen    139.2 

Firemen     137.8 

Machinists    129.6 

"Other   trainmen"    108.0 

"Other  station  men"    102.2 

"All  other  employees"    90.0 

Switch  tenders,  crossing  tenders  and  watchmen. . . .  66.4 

Trackmen  {other  than  section  foremen) 62.9 

Railway  Wages  in  tlie  United  States  and  Germany  Compared. 

The  average  daily  earnings  of  all  employees  on  the  Prussian- 
Hessian  railways  for  the  years  1900  to  1910  may  be  compared 
with  the  average  daily  compensation  of  all  employees  on  Ameri- 
can railways  for  the  same  years. 


Average  daily  compensation. 

Percentage      b  y 
which      Ameri- 

United  States. 

Prussia-Hesse. 

tion  is  greater 
than  Prussian- 
Hessian 

1900 

1901 

$1.90 
1.91 
1.92 
1.99 
2.05 
2.07 
2.08 
2.20 
2.25 
2.24 
2.29 

$0,617 
0.652 
0.657 
0.662 
0.671 
0.688 
0.726 
0.757 
0.771 
0.783 
0.807 

193.6 
192  9 

1902 

192.2 

1903 

1904 

1905 

200.6 
205.5 
200.9 

1906 

1-907 

186.5 
190.6 

1908 

190.5 

1909 

1910 

186.1 
183.8 

Wages    and    Cost    of    Living    in    Protective    United    States    and 
in    Free-trade   United   Kingdom. 

In  comparing  the  wages  and  cost  of  living  in  the  United  States 
and  the  United  Kingdom  we  must  bear  in  mind,  first,  that  the 
United  Kingdom  is  a  free-trade  country,  and  secondly,  that  labor 
is  perhaps  better  organized  there  than  anywhere  else.  Being  a 
free-trade  country  we  must  conclude  from  the  arguments  of  our 
Democratic  friends  that  the  prices  of  most  of  the  necessaries 
of  life  are  much  lower  in  the  United  Kingdom  than  they  are 
in  the  United  States.  On  the  other  hand,  if  a  protective  tariff 
does  not  tend  to  maintain  higher  wage  rates  in  the  various  in- 
dustries of  a  country  then  we  must  expect,  in  view  of  the  great 
influence  exerted  by  the  labor  organizations  in  England,  that 
wages  there  should  be  at  least  as  high  as,  if  not  higher,  than 
in  the  United  States. 

The  most  recent  comparative  study  of  the  wages  and  cost  of 
living  in  the  United  Kingdom  and  the  United  States  was  made 
by  the  British  Board  of  Trade  and  published  as  an  official  docu- 
ment in  1909a.     In  this  document  a  comparison-is  made  between 

(a)  Cost  of  living  in  American  towns.  Report  of  an  enquiry  by  the 
Board  of  Trade  into  working  class  rents,  housing,  and  retail  prices,  to- 
gether with  the  rates  of  wages  in  certain  occupations  in  the  principal 
towns  of  the  United  States  of  America,  with  an  introductory  memoran- 
dum and  a  comparison  of  conditions  in  the  United  States  and  the  United 
Kingdom.      London,    1909. 


124 


LABOR. 


the  wages  paid  in  the  Unite, 1  States  and  in  the  United  Kingdom 
in  the  building,  engineering  and  printing-  trades,  and  the  li^ht 
which  that  report  throws  on  the  relative  positions  of  the  Ameri- 
can and  the  British  workmen  in  these  industries  is  significant. 
In  making  the  comparison  the  British  Government  selected 
these  occupations  because  "it  was  necessary  to  choose  occupa- 
tions that  were  followed  most  universally"  and  beeause  they 
"represent  in  both  countries  tnose  which  rank  ameng  the  more 
highly  organized  and  the  more  highly  skilled."  The  following 
table  is  reproduced  from  the  British  Report,  the  only  changes 
made  being  the  conversion  from  British  to  United  States  money : 

Predominant  weekly  icaf/cs  of  adult  males  in  certain  occupations 
in  England  and  Wales  and  in  the  United  State*. 

[The  money  values  have  been  converted   from   shillings   and  pence  to  dollars; 
otherwise  the  table  is  reproduced  as  in  the  original  British  publication.] 


Predominating  range  of 
weekly  wages. 

Ratio  of  mean  pre- 
dominant    wage 
in     the    United 

Occupation. 

England  and 

Wales 
(Oct.,  1905). 

United  States 
(Feb.,  1909). 

ary,       1909)       to 
mean      predomi- 
nant    wage     tan 
England  and 
Wales    (October, 
1905),    taken    as 
100. 

Building  trades:  a 

Bricklayers     

$9.12-  $9.85 
9.04-    9.57 

[■     8.80-    9.57 

8.88-  10.14 
8.63-    9.67 
7.66-    9.12 

5.92-    6.57 

J     7.79-    8.76 
7.79-    8.76 
8.27-    9.25 
4.38-    5.35 

6.81-    8.03 

$26.77-$30.42 
23.42-  26.77 

16.73-  21.90 

24.33-  29.00 
21.29-  27.37 
15.82-  20.68 

12.17-  16.73 

15.41-  18.13 

16.47-  20.76 

18.13-  22.30 
9.12-  10.65 

16.73-  19.77 

801 
270 

}           285 

f          210 

1           210 

280 

Stone  masons 

Carpenters  

Joiners   

Plasterers   

Plumbers 

•'66 

Painters  

217 

Hod    carriers    and    brick- 
layers* laborers 

Engineering  trades: 

Fitters    

:::: 

231 

Turners 

208 

Smiths 

225 

Patternmakers 



231 

Laborers   

263 

Printing  trades: 

Hand   compositors    (job 
work) 

246 

Arithmetic  means:b 

The  building  trades      

243 

The  engineering  trades  __. 

213 

232 

a  The  wages  stated  for  the  building  trades  are  for  a  full  week  in  summer 
in  both  countries. 

b  In  arriving  at  the  trade  and  general  index  numbers,  bricklayers  and  stone- 
masons have  been  regarded  as  one  occupation  and  carpenters  and 
joiners  and  fitters  and  turners  as  two  respectively. 


In  commenting  on  this  table  the  British  Report  says : 

"It  will  be  seen  that  in  the  building  trades  the  mean  of  the  pre- 
dominant range  in  the  United  States  is  in  no  case  less  than  double  that 
of  the  corresponding  English  grade  of  wage-earner.  For  the  whole  groap 
the  rate  is  243  :  100.  In  the  engineering  trades  the  index  numbers  are 
in  no  case  less  than  double  the  English  figure,  and  the  combined  ratio 
is  213  :  100.  For  the  compositors  the  ratio  is  246  :  100,  as  compared  with 
232  :  100  for  all  occupations  included  in  the  table.  It  will  be  remembered 
that  each  of  these  ratios  is  subject  to  slight  modification  in  view  of  the 
different  dates  to  which  the  returns  relate." 

The  report  of  this  British  investigation  shows  that  in  the 
three  trades  indicated  the  average  wages  of  the  American  wage- 
worker  were  higher  than  those  of  the  English  wage-worker  by 
130  per  cent,  and  that  his  hours  of  work  per  week  were  fewer 
by  4  per  cent.  It  is  also  shown  that  while  the  American  wage- 
worker  with  his  higher  wages  pays  more  for  rent,  food  and  some 
other  commodities  than  the  British  worker,  the  difference  is  not 
nearly  as  great  as  that  between  their  wages,  and  the  American, 
while  being  better  housed,  better  clothed  and  better  fed,  still 
has  a  much  greater  margin  of  increase  over  his  expenditures 
than  his  British  neighbor.     This  margin,  says  the  report  of  the 


LABOR. 


125 


British  Board  of  Trade,  ''makes  possible  a  command  of  the  neces- 
saries and  conveniences  of  life  in  the  United  States  that  is  botn 
nominally  and  really  greater  than  that  enjoyed  by  the  corre- 
sponding class  in  this  country   (England)." 

In  1911  a  select  committee  of  the  United  States  Senate  pre- 
pared an  elaborate  report,  entitled  "Investigation  Relative  to 
Wages  and  Prices  of  Commodities"  (Senate  Document  No.  847, 
61st  Congress,  3d  session).  The  material  contained  in  this  re- 
port has  been  obtained  from  official  publications  of  various  gov- 
ernments, from  Consular  reports,  from  the  testimony  of  persons 
called  before  the  Committee  and  by  means  of  special  investiga- 
tions. 

The  following  table,  compiled  from  this  Senate  report,  shows 
the  actual  wages  per  hour  paid  in  the  ten  leading  cities  of  the 
United  States  and  of  the  United  Kingdom.  The  aggregate  popu- 
lation of  the  ten  American  cities  is  about  the  same  as  that  of 
the  ten  British  cities,  so  that  the  comparison  is  a  fair  one : 


!§ 

a.  «3 

|   * 
8    8 


8  t) 


t* 


•5      oS 


WNCOOOMOOOHON 
tfKC*iQlO*OtOLO!0 


3*   a*#^# 

,OT-i§i£i<Sc3£H,oST-i 


■*  M  M  CO  N  ■*  ■*  CO  oq  m 


3*     #:*     *#     # 
oocoaor~ooscao-*-"r-c© 


co?4«c^54cocr5^SX2 


iOnSooiSOD'TCO 


£iGCC50>a>aoab*-t-ao 

JlHHHHHHHHrt 


i-~eb<©t-«bao3><fa§}2 


OJr-tiHcSrHrHrHrHrHiH 


66a6o>aftNi»N 

««IHNr-lr-ii-(FHi-(iH 


iS-^io'^ocSiocoH 


rHC>iC^OiOiCoaOCDl>.00 


^8     ^^     _^ 

■<J(^COCONC0SflfS?O 


^5 


CO  .     g  <S^        V 


2       ■•». 


"a  'a 


This  table  confirms  the  statement  of  the  British  Board  of 
Trade  in  its  assertion  that  wages  in  leading  skilled  occupations 
in  the  United  States  are  more  than  double  those  in  Great  Britain. 
We  find,  for  instance,  that  the  wages  per  hour  of  carpenters  in 
New  York  were  49y2  cents  in  1900  and  60%  in  1907,  while  in 
London  they  were  21%  cents  in  both  years.  The  hourly  wq,ges 
of  bricklayers  in  New  York  rose  from  36%  cents  in  1900  to  70 


126  LABOR. 

cents  in  1907,  while  in  London  they  were  20%  cents  to  21*4  cents. 
The  hourly  wages  of  plumbers  rose  from  46  cents  in  1900  to  62 y2 
cents  in  1907  in  New  York,  while  in  London  they  were  the  same 
in  both  years,  namely,  22%  cents  per  hour.  The  same  differ- 
ences may  be  seen  by  comparing  other  cities  of  equal  population 
in  the  United  States  and  the  United  Kingdom. 

Analysing  the  above  table,  as  a  whole,  we  find  by  comparing 
the  ten  American  with  the  ten  British  cities  that  the  average 
hourly  wages  of  carpenters  in  American  cities  ranged  from 
$0.25%  to  $0.49%  in  1900,  and  from  $0.34 y2  to  $0.62%  in  1907, 
while  in  British  cities  they  ranged  from  $0.16%  to  $0.21%  in 
1900,  and  from  $0,163%  to  $0.21%  in  1907.  The  average  hourly 
wages  of  bricklayers  in  American  cities  ranged  from  $0.3  6^4  to 
$0.62%  in  1900  and  from  $0.60%  to  $0,873%  in  1907,  while  in  the 
British  cities  they  ranged  from  $0.17%  to  $0.20%  in  1900  and 
from  $0.17%  to  $0.21%  in  1907.  The  average  hourly  wages  of 
plumbers  in  American  cities  ranged  from  $0.30y2  to  $0.50  in 
1900,  and  from  $0.41  to  $0.82%  in  1907,  while  in  the  British 
cities  they  ranged  from  $0.17%  to  $0.22%  both  in  1900  and  in 
1907.  The  average  hourly  wages  of  machinists  in  American 
cities  ranged  from  $0^1%  to  $0.31  in  1900,  and  from  $0.26  to 
$0.40%  in  1907,  while  in  the  British  cities  they  ranged  from 
$0.15%  to  $0.17  in  1900,  and  from  $0,143%  to  $0.18%  in  1907.  The 
average  hourly  wages  of  blacksmiths  in  American  cities  ranged 
from  $0.21%  to  $0.34  in  1900,  and  from  $0.27%  to  $0.46%  in  1907, 
while  in  the  British  cities  they  ranged  from  $0.15%  to  $0.17y2 
in  1900,  and  from  $0,143%  to  $0.18%  in  1907.  The  average  hourly 
wages  of  compositors  in  American  cities  ranged  from  $0.3  5  % 
to  $0.58%  in  1900,  and  from  $0.43%  to  $0.80  in  1907,  while  in 
the  British  cities  they  ranged  from  $0.17%  to  $0.23%  in  1900, 
and  from  $0.19  to  $0.23%  in  1907.  It  will  be  observed  that  while 
the  average  wages  in  these  occupations  in  the  American  cities 
increased  nearly  33  per  cent  during  the  seven-year  period,  the 
wages  in  the  British  cities  increased  but  little  over  3  per  cent 
during  the  same  time. 


That  higher  wage  level  aimed  at  by  the  fathers  of  the  Republic, 
the  policy  of  protection,  which  they  inaugurated,  secured,  and  still 
maintain. — Hon.  Georfge  H.  Ely,  of  Ohio,  in  the  "American  Econ- 
omist." 

I  do  not  apologize  for  my  position  touching  the  protective 
policy.  The  Wilson  bill  was  enacted  into  law.  Some  of  us 
recalled  what  that  bill  did,  or  was  the  most  natural  factor 
in  doing.  It  closed  and  bankrupted  the  entire  industries 
of    the    country. — Ex-Speaker    Cannon. 

There  are  more  than  twenty-five  thousand  local  labor  unions 
in  the  United  States,  with  a  membership  of  more  than  two  millions. 
What  infinite  good  can  be  accomplished  by  this  mighty  army  of 
peace  and  industry  if  held  true  to  its  opportunity. — Hon.  C.  W«  Fair- 
Fairbanks,   at   Kansas   City,   Mo.,   September   1,   1002. 

By  the  policy  of  fostering  American  industries  the  development 
of  our  manufacturing  interests  have  been  secured;  the  inventive 
genius  of  our  people  has  found  a  field;  American  labor  has  become 
the  best  paid,  and  consequently  our  laborers  are  the  bent  housed, 
clothed  and  fed;  and  the  wonderful  development  and  progreNs  in 
this  country  in  all  that  makes  a  people  great  have  elicited  the 
admiration  of  the  civilised  world. — Senator  Cullom,  in  the  "Ameri- 
can Economist." 

Is  there  a  single  measure  promised  in  the  last  platform, 
or  suggested  by  developments,  that  can  and  would  not  be 
enacted  under  our  time-honored  system  so  soon  as  the 
people  have  reached  anything  approaching  a  mature  con- 
viction as  to  form  and  substance;  and  to  accomplish  such 
a  result  are  we  as  a  people  not  better  qualified  to  select 
men  than  wre  are  to  formulate  measures  t — Hon.  Charles 
IV'agel    at    Indianapolis. 

The  farmer  of  the  West  has  learned  and  the  farmer  of  the 
South  ought  to  learn  that  when  the  factory  Is  closed  he  not  only 
loses  customers  for  his  products,  but  also  meets  additional  com- 
petitors in  his  production.  The  workingnian,  losing  his  employ- 
ment in  the  factory,  Hetties  upon  a  truck  farm  and  becomes  a 
producer  of  the  products  he  formerly  bought  from  the  farmer. 
The  prosperity  of  the  farmer  depends  upon  the  prosperity  of  those 
who  buy  his  products. — Hon.  P.  1*.  Campbell,  in  Congress,  April  1, 
1004. 


LABOR. 


127 


The  relative  increase  in  wages  in  the  United  States  as  com- 
pared with  the  United  Kingdom  can  best  be  shown  by  means 
of  index  numbers  (for  explanation  see  chapter  on  Advance  in 
Cost  of  Living).  The  following  index  numbers  of  wages  and 
prices  have  been  taken  from  official  publications : 


«  «5 

t-<& 

03+-> 

O 

«o 

.£tJ 

hj  o 

*£  o 

M3" 

f|jl 

t»B§ 

•°  °2 

■g^i 

1  b'S 

^X2  .. 

3  a  <u 

03  j-j  © 


o      $ 

p-£ 

<*->  a03 
931-1  £ 

s£a 
3^  • 

§      o 
£  >>S> 

£.2 

02  =«  * 


.-!  as 

P. 2 


^ 


«1o 


.22  3 


to     oco  £ 
iO      gall 


T3  O 


oo      |0(B 

s>  a£^ 

£>         O         "H 
5        **° 

o 

o 


I 


■2  s 


PS 


4>    O 

a  ox 

P.S 

M 


•o  a 

G  60 

p. a 


•o  on" 

.if  +-> 


■o  a 

«  o 
a  6o 

p. a 


PS 


-a  a 
£  o 

a  6o 

p. a 


S  a  °-s  < 


oV 
^  3 


>PcG 


C  o3  C  60 

SbhP  o 


IHOCO>aOaaOHOHHHH(MM(MlMCO« 


riHriri  i-«  r-t  iH  iH  iH  r-t  iH  iH  rH  rH  iH  r-t 


8OHH0000QOO<MO50(M501>ai-<i<0)OH'}      I 
OOOaSOOOOOOHHHHINIMMeOM       I 
t-I  i-H  r-t  i-l  l-l  i-I  r-l  l-l  i-H  i-I  i-I  r-l  t-l  iH  r-l  r-l  i-I  i-H  i-H      | 


gggggggssssssssssss 


<M  <N  ©  O  O 


g88S&S88883S83S58S3SS3 

r-l  i-H  i-H  i-I  l-l         HHHrt'HrtHrlHHHHH 


g3288g888ggg3$8fe333SS, 

i— I  i — I  rlHrlHHHrlHHHHHi 


S?&ggg?g8gg88:2S£S8S3§g§  I 


358S;c388Sgg  £888888888888 


ftOMNftaHOftftWIOOONIi^OOHi 
ESOO&aOOOloSoOriHHHNI 


opoo»~l>oofris2^ii£SiO»0«5iowio«OtrS-gtrSg 

aaaaooooooooooooCogoo 


OH(MM-*L'!tONMaOHWW>*!2<OtrSS!OH 

aaaaaaaaaaooopooccooHH 

OCQOClOaOaOCCOOOCOOOOOSOC>05Ciro<ftOiCaCi05C5 


«  60 

2a 


ss 


0.0. 


2<2 


wo 

<  S  fl 

,60S 


1  +->,r3 


The  information  given  in  the  above  table  is  graphically  shown 
in  the  following  charts : 


It  Is  better  for  this  country  to  feed,  clothe  and  house  our  own 
labor  in  this  country  than  to  support  foreign  labor  in  other 
countries    with   our   money.— H.    K,    Thurber. 


128 


LABOR. 


Average  Wages  in  Foundries  and  Machine  Shops  (Engineering  Trades] 

■  890     1891     IS'*.'     1)9)     1894     1893     189k     1897     1898     1899     1900     1*01     1902     1*0)     1*04     1905     I9K     1*07     1900     1909     1910     1911 

1M 

in  i 

ir: 
|M 

1  1H 

IKS 

IM 
111 

mi 

10S 

KM! 

mm 

''' 

laltea   Sismb. 

InllM   Kindlon. 

1IIJ 
KXI 

«(i 

1 

Average  Wages  in  the  Building  Trades 


tailed  Kingdom. 


tutted    States. 


Average  Wages 

in 

the  Textile  Trades 

/ 

• 

140 

i:is 
130 

i:w 

1:1- 

13U 
IM 

e« 

/ 

1 

u3 

11M' 
110 

111 

10S 
ItHJ 

P* 

— 

> 

s 

^ 

^ 

102 
10O 

M. 

Th» 

•lot 

*d    1 

|U.K 

are 

<-•<! 

ma. 

itm 

note 

to 

.bo» 

I  ta 

l>le. 

United  King-dun 


Average  Wages  In  Three  Groups  of  Industries  Combined 

mi    I99J    1894    IS«    IS9«    1897    1898    1899    1900    1901     1*02    190]    1904    1905    1906    1907    1*08    19*9    1910 


tailed    Staiea, 


Called  Klaadon 


Average  Prices  of  Commodities:  United  States  (U.  S.  Bureau  of  Labor); 
United  Kingdom  (Sauerbeck) 


IM 

14H 

14H 

HJ 

HIV 

IM 

i:i4 

in 

i;i.i> 

IJ- 

l-.'ii 

iS 

IM 

1  IX 

ii<; 

i  1 1 

119 

1  in 

/a^ 

|«M 

//>• 

1*1 

n! 

*• 

< 

// 

1IKI 

M 

B 

n 

a 

M 

m 

• 

1 

*U 

i 

tailed    State*. 
tailed  Kla»don» 


LABOR. 


129 


It  will  be  not'iced  that  the  course  of  wages  in  the  Tjnited  King- 
dom has  been  but  slightty  upward,  while  in  the  United  States 
the  upward  trend  of  wages  has  been  very  decided  in  each  of 
the  three  groups  of  industries  during  the  twenty-year  period 
from  1890  to  1910.  In  the  case  of  wholesale  prices,  however,  the 
lines  showing  the  trend  in  the  two  countries  are  nearly  parallel, 
prices  having  risen  but  slightly  more  in  the  United  States  than 
in  the  United  Kingdom. 

While  as  stated  above  the  prices  of  commodities  are  slightly 
higher  in  the  United  States  than  in  the  United  Kingdom,  this 
is  not  true  of  all  of  the  most  important,  articles  of  consumption, 
some  of  the  chief  articles  of  food  being  higher  in  the  United 
Kingdom.  In  the  following  table  a  comparison  is  made  between 
the  wholesale  prices  of  beef,  bacon,  wheat,  corn,  wheat  flour  and 
mutton  as  nearly  as  possible  of  the  same  grade  in  the  United 
States  and  in  the  United  Kingdom  in  1900  and  1910,  the  British 
figures  being  obtained  from  Consular  reports  and  published  in 
the  above  mentioned  Senate  report,  and  those  for  the  United 
States  from  Bulletin  No.  99  of  the  United  States  Bureau  of 
Labor.  There  are  also  shown,  by  way  of  comparison,  the  aver- 
age hourly  wages  in  leading  occupations  in  1900  and  1907  in 
both  countries : 

Wholesale  prices  of  leading  food  commodities  in  1900  and  1910 
in  the  United  States  and  the  United  Kingdom. 

[Compiled  from  Bulletin  99,  U.  S.  Bureau  of  Labor,  Senate  Document  No.  847, 
61st  Congress,  3d  Session,  Vol.  I,  pp.  24  to  32.] 


Wholesale  prices, 
1900. 

Wholesale  prices, 
1910. 

United 
States. 

United 
Kingdom. 

United 
States. 

United 
Kingdom. 

Fresh  beef,  per  100  pounds 

$8.04 
7.32 
7.27 
7.04 
3.81 
3.35 

$12.00 
•       13.50 
14.50 
8.50 
5.90 
3.92 

$10.27 

12.91 

10.05 

10.97 

5.81 

4.69 

$11.75 
16.00 

Mutton,  per  100  pounds 

12.00 

Wheat,  per  10  bushels 

12.10 
8.20 

Wheat  flour,  per  barrel 

4.90 

Rates  of  wages  per  hour  of  wage  earners  in  specified  occupa- 
tions in  1900  and  1901  in  the  United  States  and  the  United 
Kingdom. 


[Compiled  from  Senate  Document  No.  847,  61st  Congress, 

page  74.] 


Session,  Vol.  I, 


Wages  per  hour, 

1900. 

Wages  per  hour, 
1907. 

United 
States. 

United 
Kingdom. 

United 
States. 

United 
Kingdom. 

Blacksmiths 

Brieklayers 

Carpenters  

Compositors  

Machinists 

Plumbers 

$0.25 
.47 
.30% 
.41 
.25 
.38 

$0.16% 
.19 
•18% 
.20 
.16 
.18 

$0.33 
.62 
.43 
.53 
.30% 
.56 

$0.17 
.19 

.18% 
.21% 
.17 
.18% 

The   same   facts   are   graphically   shown   in  the   charts   which 
follow : 


A  nation  like  that  of  tne  United  States,  with  eighty  millions 
of  people,  with  resources  unexampled  in  the  history  of  the  world, 
with  ideals  as  high  as  those  of  any  nat'ion,  with  the  earnest  desire 
to  spread  the  principles  of  liberty  and  of  popular  government, 
cannot  maintain  a  poMltion  of  isolation  with  respect  to  the  peoples 
of  the  world  when  fate  shall  have  thrust  some  of  those  peoples 
under    our    control. — Hon.    VVm.    H.    Taft,    at    Cleveland,    Ohio. 


LABOR. 


Prices  of  Food  [  wholesale)  in  London,  England,  and  in  the  United  States,  1900  and  1910 


ft        «2         S3         M         «S        »<l        a 

»        » 

9         *s        .10       ail       a 

a       aI3      a,«     ««8 

tooor— " 

(Vailed    Klasdom 
(Called  IMUl 

rVe.h    Beat   Bar 
100   aoaada 

United     Kingdom 
iSS Toaade  j 

(  United    Klasdom 

Wheat  per 
loo  aoaada 

(WOO) 

Uaio] 

(t>nlted    Klasdom 
1             (United    Klasdom 

L.or"*'- """ 

(Valted    Klasdom 

M9oor","d-""" 

(Ualted    Klasdom 
Wkaat   flu.,  J 
»«r    barrel     1 

UMO 

(United    Klasdom 
Motion   per  J 
lOO    pound,    j 

Wages  per  Hour  (in  cents)  in  the  United  Kingdom  and  in  the  United  States,  1900  and  1907 


.05 

0 

5           .20 

IS 

30             88            .40 

«S 

so        jis  .  _  .oo 

United    Klasdom 
■lackamllhaJ 

\.\OOli 

(United   Klasdom 

rnooi 

(Vailed    Klasdom 
(Valted  Statee 

Irleklarera. 

(Valted   State. 

fioooJ 

Carpenter. 

(Valted  State. 
100T< 

(Valted    Klasdom 

(Valted   State. 

_ 

(Valted    Klasdom 

(Vailed    Klnsdoio 

Maehlalala  . 

rioooJ 

IiootJ 

V            (Vailed    Klasdom 

fiooor 

(Valted    Klasdom 

(Valted.  Statea 
JOOli 

nirtin 

The  Itcpuhlicnn  party  was  dedicated  to  freedom  forty-four  years 
bko.  It  has  been  the  party  of  liberty  ami  emancipation  fr<»m 
that  hour;  not  of  profession  but  of  performance. — President  9fo- 
K  in  ley,    at    Canton,    July    12,    11)00. 


LABOR. 


131 


The  table  which  follows  shows  the  retail  prices  of  bacon,  beef, 
ham  and  coffee  in  1910  in  American  and  English  cities,  compiled 
from  official  sources : 


^    ^ 


« 

m 

as 

X 

fa 

ts 

CO 

.. 

*3 

X 

s 

CO 

o 
D 

e 

■a 

05 

-e. 

t- 

oa 

00 

■+o 

6 

o 

ft 

-*-> 

«p 

a 

3 

s 

^3 

a 

o 

© 

V, 

o 

y. 

«*-, 

o 

bi 

c 

£ 

1 

s, 

& 

S 

a 

0 

0 

5 

ft; 

3 

w 

T3 

cjq 

a 

x: 

« 

m 

-a 

+j 

a 

n 

P 

1 

o  o 


oop 


O-C  0"S 
.9.2  »-G 
n  >  «J 


«    •.£■££  K\2 


A 

o 


Ph02 


5  a 


I  0-5 

HOC; 
O  &X5 

o.-  * 


1  :  ; 


E  o9 


o  3  3  3 


iH  CO  t-I  00  TO  I 


8       ass 


TO  ID 

„&.  g  s3.a 

S  I  »-•! 


w     » 

M         S3 
I  03  S  'S  K  m  rt 

PHr75 


1-2 

BkSo 

o^^pq 

S3 


o         a 


I  OS 

o  °  a  +1 

•^    i-i    <-!    (-1 


3  .  o 

S  o 


I'S  3  o 

1  oj  S3  53^2 


In  discussing  the  comparison  of  English  and  American  con- 
ditions as  presented  in  the  British  report  on  the  cost  of  living 
in  American  towns  above  mentioned,  an  American  reviewer  re- 
cently said  :  (a)  "While  these  precise  figures  must  be  taken  with 
broad  qualifications,  the  conclusion  that  the  economic  condition 

OF  THE  CLASSES   STUDIED  IS  BETTER  IN   AMERICA  THAN  IN   ENGLAND  is 

abundantly  confirmed  by  other  evidence.  The  American  dietary 
is  found  to  be  more  liberal  and  varied  than  the  English,  and 

THE    PROPORTION     OF    INCOME    LEFT    AFTER    PAYING     RENT     AND     FOOD 

bills  is  larger  in  America.  Indeed,  even  the  lowest  income  class 
of  American  families  spend  relatively  less  of  their  income  upon 
food  and  rent  than  the  highest  income  class  of  British  families. 
Thus  the  American  family  has  a  wider  margin .  of  income  for 
buying  non-necessaries,  enjoys  a  higher  standard  of  living  and 
can  save  more  if  so  disposed." 


'a)    W. 

1911. 


C.   Mitchell,   in  the  Quarterly  Journal  of  Economics,   November, 


132  LABOR. 

Summarized  statement  by  The  London  Times  of  British  Board  of 
Trade  Report  on  comparative  wage  and  living  conditions  in 
United  Kingdom  and  United  States. 

There  has  just  been  issued  by  the  board  of  trade  an  exhaustive 
report  upon  an  inquiry  made  regarding  rents  and  tne  prices  of 
the  necessarines  of  life  and  the  rates  of  wages  prevailing  in  the 
principal  industrial  towns  of  the  United  States.  The  report  it- 
self is  prefaced  by  a  summary  by  Mr.  G.  R.  Askwith,  in  which  it 
is  pointed  out  that  in  the  towns  investigated  the  rent  levels  vary 
greatly,  but  the  New  York  level  on  the  whole  exceeds  that  of 
the  other  towns  to  a  far  less  extent  than  the  London  level  ex- 
ceeds that  of  the  English  provincial  towns.  It  appears  that  the 
ratio  of  weekly  wages  for  certain  occupations  in  the  United 
States  and  England  and  Wales,  respectively,  is  243  to  100  in  the 
building  trades,  213  to  100  in  the  engineering  trades,  246  to  100 
in  the  printing  trades,  and  232  to  100  in^all  the  trades  together. 
Allowing  for  a  slight  advance  in  wages  in  England  between  Octo- 
ber, 1905,  when  the  English  figures  were  taken,  and  February, 
1909,  when  the  American  figures  were  taken,  the  ratio  is  reduced 
to  230  to  100. 

The  weekly  hours  o«f  labor  were  found  to  be  11  per  cent  shorter 
in  the  buildHng  trades  in  the  United  States  than  in  England  and 
Wales,  and  7  per  cent  shorter  in  the  printing  trades,  but  6  per 
cent  longer  in  the  engineering  trades,  the  ratio  in  all  occupations 
being  96  to  100. 

As  regards  rents,  the  American  workman  pays  on  the  whole  a 
little  more  than  twice  as  much  as  the  English  workman  for  the 
same  amount  of  house  accommodation,  the  actual  ratio  being 
207  to  100,  the  minimum  of  the  predominant  range  of  rents  for 
the  United  States  towns  as  a  whole  exceeding  by  from  50  to  77 
per  cent  the  maximum  of  the  range  for  towns  in  England  and 
Wales  for  dwellings  containing  the  same  number  of  rooms. 

Extracts  from  letters  of  Samuel  Gompers,  President  of  the  Amer- 
ican Federation  of  Labor,  referring  to  housing  conditions 
abroad. 

"The  housing  of  the  wageworkers  of  the  various  European 
countries  as  compared  with  that  of  the  same  class  in  America 
would,  in  order  to  bring  out  the  full  truth,  require  a  long  and 
faithful  study.  When  the  facts  were  ascertained  the  real  point 
remaining  would  be  how  to  present  them  in  order  to  create  an 
exact  impression  of  the  truth.  Besides,  in  making  comparisons, 
a  difficulty  would  be  in  fixing  an  American  standard.  Conditions 
exist  in  a  few  American  cities,  such  as  i>ew  York  and  Pittsburgh, 
representing  neither  European  nor  American  standards,  but  what 
are  created  through  the  transition  of  the  most  helpless  of  our 
newly  arrived  immigrants  from  a  state,  perhaps,  more  miserable 
than  that  in  which  they  lived  in  their  native  countries  to  a 
level  equal  to  the  financially  lowest  that  is  permanent  among  the 
American-born  citizens.  Looking  at  the  housing  problem  wisely, 
the  greatest  fact  in  favor  of  America  is  space.  The  workingman 
in  the  country  towns  and  in  the  cities  smaller  than  those  in 
which  the  foreign  population  is  congested  can  rent  or  perhaps 
buy  a  separate  home.  In  general,  Europe  does  not  give  this  op- 
portunity. For  example,  Bremen  is  the  only  considerable  city  in 
Germany  which  has  small  single-family  houses  adapted  to  the 
needs  of  working  people.  Only  the  big  tenement  house,  except 
in  rare  cases,  is  to  be  found  in  other  cities.  The  wage  earner 
in  them  is  regarded  as  permanently  a  rent  payer,  an  animal  in 
a  stall  in  a  five,  six,  or  seven-story  stable.  No ;  not  one  animal 
in  one  stall — not  so  good  as  that — whole  families  or  a  herd  of 
lodgers  live  in  one  of  the  stalls. 

*  *  *  *  *  *  *  *  * 

"In  no  city  in  Europe  did  I  find  rents  any  cheaper,  wages  con- 
sidered, than  they  run  in  Philadelphia,  Baltimore,  Louisville,  or 
in  the  New  England  towns  not  having  a  boom,  or  even  in  many 
cities  of  the  Mississippi  Basin.  What  strikes  the  American  is 
how  little  the  European  renting  wage-worker  gets  for  his  money. 


LABOR.  133 

Very  seldom  indeed  has  he  a  bit  of  garden;  he  takes  a  poor 
water  service  for  granted ;  his  rooms  are  fewer  and  smaller  than 
is  ordinarily  the  case  of  an  American  house.  The  rent  payer  is 
usually  a  rent  payer  for  life,  fto  institution  of  the  proportion 
of  /the  American  building  and  loan  association  exists  in  any 
European  country.  The  movement  of  large  masses  from  the 
position  of  rent  payers  to  that  of  householders  has  been  charac- 
teristic of  America.  European  philanthropists,  statesmen,  and 
cooperators  are  at  the*  present  time  endeavoring  to  establish  the 
necessary  methods  to  bring  about  the  same  results. 

"The  European  working  classes,  however,  neither  hire  servants 
nor  buy  articles  of  luxury  except  in  rare  cases.  The  struggle 
for  a  barely  decent  living  is  ever  before  them.  Their  necessary 
annual  family  "budget"  comprises  plain  and  cheap  food,  which, 
on  the  average,  takes  40  to  65  per  cent  of  the  entire  outlay, 
quarters  in  either  an  "industrial"  or  "slum"  district  requiring 
20  to  35  per  cent,  and  clothing  10  per  cent  or  more.  These  per- 
centages must  be  indefinite,  depenaing  as  they  do  upon  the  size 
of  the  family,  on  earnings,  and  on  climate,  and  even  the  govern- 
ment. Mentally  contemplating  the  many  cities  I  visited  and, 
having  in  mfnd  the  conversations  I  had  with  workingmen  who 
had  lived  both  in  Europe  and  America,  I  believe  I  may  assert 
that  whether  the  cost  of  living  in  Europe  or  America  is  greater 
to  the  workingman  depends  entirely  on  the  standard  of  living 
he  adopts  while  in  America.  If  he  voluntarily  lives  the  life  of 
self^enial  in  this  country  that  he  compulsorily  lived'  in  his  native 
land,  his  outlay  of  money  will  remain  about  the  same.  Even 
then  he  will  hardly  be  able  to  escape  gaining  something  from 
the  superior  supply  of  the  good  things  in  life  in  America. 

"If  I  am  called  on  to  name  one  of  the  good  things  which  is 
conspicuous,  I  reply :  "Our  common  schools  for  the  workers' 
children,"  and  as  I  write  the  words  I  hear  again  the  enthusiastic 
sentiments  on  this  point  uttered  in  my  presence  by  Italians, 
Bohemians,  Austrians,  and  Irishmen.  "To  think,"  they  say,  "your 
country  gives  even  the  schoolbooks  free." 

"Living  is  cheap  to  the  wageworker  in  Europe  only  because  he 
does  without  what  in  America  soon  becomes  a  necessity  to  him — 
food  in  good  quantity  and  quality,  presentable  clothes  among 
his  aspiring  fellow  workmen  and  their  families,  and  a  com- 
fortably furnished  home  in  quarters  responding  to  his  awakened 
desires  for  equality  with  his  American  neighbors,  and  in  general 
a  larger  and  freer  life." 

PRESIDENT    TAFT    ON    EMPLOYERS'    LIABILITY    AND    "WORK- 
MEN'S   COMPENSATION. 

The  following  message  sent  to  Congress  by  President  Taft  on 
February  20,  1912,  illustrates  his  attitude  of  earnest,  thoughtful 
interest  in  the  welfare  of  labor: 
To  the  Senate  and  House  of  Representatives: 

I  have  the  honor  to  transmit  herewith  the  report  of  the  Employers' 
Liability  and  Workmen's  Compensation  Commission,  authorized  by  joint 
resolution  No.  41.  approved  June  25,  1910,  "To  make  a  thorough  investiga- 
tion of  the  subject  of  employers'  liability  and  workmen's  compensation,  and 
to  submit  a  report  through  the  President  to  the  Congress  of  the  United 
States." 

The  commission  recommends  a  carefully  drawn  bill,  entitled  "A  bill 
to  provide  an  exclusive  remedy  and  compensation  for  accidental  injuries 
resulting  in  disability  or  death  to  employees  of  common  carriers  by  rail- 
roads engaged  in  interstate  or  foreign  commerce,  or  in  the  District  of 
Columbia,  and  for  other  purposes."  This  bill  works  out  in  d«tail  a  com- 
pensation for  accidental  injuries  to  employees  of  common  carriers  in  inter- 
state railroad  business,  on  the  theory  of  insuring  each  employee  against 
the  results  of  injury  received  in  the  course  of  the  employment,  without 
reference  to  his  contributory  negligence,  and  without  any  of  the  rules 
obtaining  in  the  common  law  limiting  the  liability  of  the  employer  in  such 
cases.  Tha  only  case  in  Which  no  compensation  is  to  be  allowed  by  the 
act  is  where  the  injury  or  death  of  the  employee  is  occasioned  by  his  will- 
ful intention  to  bring  about  the  injury  or  death  of  himself  or  of  another 
or  when  the  injury  results  from  his  intoxication  while  on  duty. 

It  is  unnecessary  to  go  into  the  details  of  the  bill.  They  are,  however, 
most  admirably  worked  out.  They  provide  for  a  medical  and  hospital 
service  for  the  injured  man,  for  a  notice  of  the  injury  to  the  employer, 
where  such  notice  is  not  obviously  given  by  the  accident  itself ;  for  the 
fixing  of  the  recovery  by  agreement;  if  not  by  agreement,  by  an  official 
adjuster,   to  be  confirmed  by  the  court,  and,   if  a  jury   is  demanded,   to  be 


134  LABOR. 

passed  on  by  a  jury.  The  amount  of  recovery  is  regulated  In  proportion 
to  the  wages  received  and  the  more  or  less  serious  character  of  the  injury 
where  death  does  not  ensue,  specific  provision  being  made  for  particular 
injuries  in  so  far  as  they  can  be  specified.  The  compensation  is  to  be 
made  in  the  form  of  annual  payments  for  a  number  of  years  or  for  life. 
The  fees  to  be  paid  to  attorneys  are  specifically  limited  by  the  act.  The 
remedies  offered  ara  exclusive  of  any  other  remedies.  The  statistical  in- 
vestigation seems  to  show  that  under  this  act  the  cost  to  the  railroads  would 
be,  perhaps,  25  per  cent  more  than  the  total   cost  which  they  now  incur. 

The  report  of  the  commissison  has  been  very  able  and  satisfactory,  the 
investigations  have  been  most  thorough,  and  the  discussion  of  the  consti- 
tutional questions  which  have  arisen  in  respect  to  the  validity  of  the  bill 
is  of  the   highest  merit. 

Three  objections  to  the  validity  of  the  bill,  of  course,  occur : 

In  the  first  place,  the  question  arises  whether  under  the  provisions  of 
the  commerce  clause  the  bill  could  be  considered  to  be  a  regulation  of 
interstate  and  foreign  commerce.  That  seems  to  be  already  settled  by  the 
decision  of  the  Supreme  Court  in  the  employers'  liability  case. 

The  second  question  is  whether  the  making  of  these  remedies  exclusive 
and  the  compelling  of  the  railroad  companies  to  meet  obligations  arising 
from  injuries,  for  which  the  railroad  would  not  be  liable  under  the  common 
law,  is  a  denial  of  the  due  process  of  law  which  is  enjoined  upon  Con- 
gress by  the  fifth  amendment  to  the  Constitution  in  dealing  with  the 
property  rights.  This  question  the  report  takes  up,  and  in  an  exhaustive 
review  of  the  authorities  makes  clear,  as  it  seems  to  me,  the  validity  of 
the  act.  This  is  the  question  which  in  the  Court  of  Appeals  of  the  State 
of  New  York  was  decided  adversely  to  the  validity  of  the  compensation  act 
adopted  by  the  legislature  of  that  State.  How  far  that  act  and  the  one 
here  proposed  differ  it  is  unnecessary  to  state.  It  is  sufficient  to  say  that 
the  argument  of  the  commission  is  most  convincing  to  show  that  the  police 
power  of  the  Government  exercised  in  the  regulation  of  interstate  commerce 
is  quite  sufficient  to  justify  the  imposition  upon  the  interstate  railroad  com- 
panies of  the  liability  for  the  injuries  to  its  employees  on  an  insurance 
basis. 

The  third  objection  is  that  the  right  of  trial  by  jury,  guaranteed  by  the 
seventh  amendment,  is  denied.  As  a  matter  of  fact,  the  right  is  preserved 
in  this  act  by  permitting  a  jury  to  pass  on  the  issue  when  duly  demanded, 
in  accordance  with  the  limitations  'of  the  act. 

I  sincerely  hope  that  this  act  will  pass.  I  deem  it  one  of  the  great  steps 
of  progress  toward  a  satisfactory  solution  of  an  important  phase  of  the 
controversies  between  employer  and  employee  that  has  been  proposed  with- 
in the  last  two  or  three  decades.  The  old  rules  'of  liability  under  the  com- 
mon law  were  adapted  to  a  different  age  and  c'ondition  and  were  evidently 
drawn  by  men  imbued  with  the  importance  of  preserving  the  employers 
from  burdensome  or  unjust  liability.  It  was  treated  as  a  personal  matter 
of  each  employee,  and  the  employer  and  the  empl'oyee  were  put  on  a  level 
of  dealing,  which,  however  it  may  have  been  in  the  past,  certainly  creates 
injustice  to  the  employee  under  the  present  conditions. 

One  of  the  great  objections  to  the  old  common-law  method  of  settling 
questions  of  this  character  was  the  lack  of  uniformity  in  the  recoveries 
made  by  injured  employees  and  by  the  representatives  of  those  who  suf- 
fered death.  Frequently  meritorious  cases  that  appealed  strongly  to  every 
sense  of  human  justice  were  shut  out  by  arbitrary  rules  limiting  the  lia- 
bility of  the  employer.  On  the  other  hand,  often  by  perjured  evidence  and 
the  undue  emotional  generosity  of  the  jury,  recoveries  were  given  far  in 
excess  of  the  real  injury,  and  s'ometimes  on  facts  that  hardly  justified  re- 
covery at  all.  Now,  under  this  system  the  tendency  will  be  to  create  as 
nearly  a  uniform  system  as  can  be  devised ;  there  will  be  recoveries  in 
every  case,  and  they  will  be  limited  by  the  terms  of  the  law  so  as  to  be 
reasonable. 

The  great  injustice  of  the  present  system,  by  which  recoveries  of  ver- 
dicts of  any  size  do  not  result  in  actual  benefit  to  the  injured  person  be- 
cause of  the  heavy  expense  of  the  litigation  and  the  fees  charged  by  the 
counsel  for  the  plaintiff,  will  disappear  under  this  new  law,  by  which  the 
fees  'of  the  counsel  are  limited  to  a  very  reasonable  amount.  The  cas>s 
will  be  disposed  of  most  expeditiously  under  this  system,  and  the  money 
will  be  distributed  for  the  support  of  the  injured  person  over  a  number 
of  years,   so  as  to  make  its  benefit  greater  and   more   secure. 

Of  course  the  great  object  of  this  act  is  to  secure  justice  to  the  weaker 
party  under  existing  modern  conditions,  but  a  result  hardly  less  important 
will   follow  from  this  act  that  I   can  not  fail  to  mention. 

The  administration  of  justice  to-day  is  clogged  in  every  court  by  the 
great  number  of  suits  for  damages  for  personal  .  injury.  The  settlement 
of  such  cases  by.  this  system  will  serve  to  reduce  the  burden  of  our  courts 
one-half  by  taking  the  cases  out  of  court  and  disposing  of  them  by  this 
short  cut.  The  remainder  of  the  business  in  the  courts  will  thus  have 
greater  attention  from  the  judges,  and  will  be  disposed  of  with  much  greater 
dispatch.  In  every  way,  therefore,  the  act  demands  your  earnest  consid- 
eration, and  I  sincerely  hope  that  it  may  be  passed  before  the  adjourn- 
ment of  this  session  of  Congress. 


'WILLIAM  H.   TAFT'S  RELATIONS  TO  UNION  LABOR. 

No  class  of  citizens  is  more  deeply  interested  in  the  records 
of  Presidential  candidates  than  union  workmen.  They  want  the 
simple  facts  with  regard  to  each  man,  and  it  is  especially  in- 
cumbent upon  them  not  to  form  opinions  on  insufficient  evidence, 
and  to  consider  whether  a  candidate's  record  is  one  of  achieve- 


LABOR.  135 

ment  or  only  of  promise.  Actions  may  not  be  more  eloquent  than 
words,  but  they  are  more  convincing-.  Trade  unionists,  like  other 
people,  will  never  know  their  friends  until  they  put  them  upon 
trial ;  and  when  a  Tuan  is  tried  he  should  be  judged  by  his  whole 
course  of  action,  and  not  by  one  isolated  event  over  which  there 
may  be  a  difference  of  opinion  even  among-  trade  unionists.  If 
the  candidate  has  had  opportunity  to  do  things,  has  he  done 
them?  And  in  the  doing,  has  he  been  fearless  and  fair  towards 
all  classes  of  citizens?  For  trade  unionists  want  neither  charity 
nor  favor ;  they  want  opportunity  and  justice. 

Next  to  the  churches  and  the  schools,  trade  unionism  has 
done  much  to  raise  the  standard  of  American  citizenship.  It  has 
said:  "Suffer  little  children  to  come  into  the  school  house  and 
the  church  and  not  into  the  factory  and  mine,"  and  it  has  given 
to  their  progenitors  higher  wages,  shorter  hours,  more  sanitary 
conditions  of  living  and  greater  security  to  life  and  limb — -all  of 
which  has  been  shared  by  union  and  non-union  workers ;  that  is 
to  say,  the  union  workers;  have  fought  the  battles,  carried  the 
burdens  and  made  the  sacrifices,  and  society  as  a  whole  has  ben- 
efited. It  has  said  :  "The  laborer  is  worthy  of  his  hire,  even 
though  the  laborer  be  a  woman."  It  has  at  times  been  led  by  bad 
men,  but  the  organization  that  is  composed  of  saints  has  not  yet 
taken  out  its  charter.  It  has  made  mistakes,  but  the  man  or  the 
institution  that  does  not  make  mistakes  does  not  make  anything. 
This  is  no  argument,  however,  in  favor  of  the  making  of  heed- 
less blunders,  and  a  blunder  would  be  made  if  one  who  has  suc- 
cessfully met  many  public  trusts  and  discharged  duties  of  a  high 
national  and  international  significance,  and  who  has  ever  been 
prompted  by  motives  of  the  highest  regard  for  the  welfare  of 
the  producing  people  of  this  nation,  should  be  credited  by  organ- 
ized labor  as  being  now,  or  ever  having  been,  inimical  to  their 
interests.  Secretary  Taft's  whole  public  career,  and  it  is  an  ex- 
tensive one,  contains  no  incident  in  which  he  has  ever,  by  word 
or  act,  arrayed  himself  against  the  principles  of  trade  union- 
ism. On  the  contrary,  he  has  been  its  consistent  friend  and  ad- 
vocate. His  record  shows  that  not  only  were  his  sympathies  with 
the  organization,  but  that  his  actions  were  those  of  a  friend 
many  years  before  either  he  or  the  American  people  had. thought 
of  him  as  a  Presidential  possibility. 

Misquoted    and    unjustly    Judged. 

Probably  no  judge  has  ever  been  more  misquoted  and  unjustly 
judged  by  trade  unionists  than  Judge  Taft.  His  many  decisions' 
in  favor  of  labor  organizations  have  been  minimized  to  such  an 
extent  that  one  is  prompted  to  inquire  if  those  who  have  ex- 
ploited his  record  before  labor  organizations  were  not  more  in- 
terested in  the  welfare  of  some  political  party  than  in  the  inter- 
ests of  their  labor  organizations.  Trade  unionists  should  stand 
together,  without  regard  to  party,  in  contending  for  everything 
that  will  legitimately  advance  their  principles,  and  should  credit 
an  honest  judge  with  doing  his  duty,  even  though  his  decisions  be 
adverse  to  them,  so  long  as  the y  are  in  accordance  with  the  law 
of  the  land.  His  decisions,  of  course,  may  not  voice  the  opinion 
of  the  judge;  he  does  not  make  the  law.  On  the  other  hand, 
there  is  no  decision  by  Judge  Taft  that  can  be  cited  that  indi- 
cates personal  antipathy  or  a  personal  unfriendliness  on  his  part 
to  labor  organizations. 

Some    of   the    Public    Actions    of    William    H.    Taft    Especially- 
Helpful    to    Organized    Labor. 

The  words  of  Judge  Taft  in  the  Arthur  and  Phelan  cases, 
in  1893-4,  setting  forth  the  rights  of  labor  organizations  under 
the  law,  were  invoked  and  applied  in  favor  of  labor  unions 
in  the  case  of  the  strike  on  the  Wabash  Kailroad  in  1903,  and 
an  injunction  against  the  union  dissolved. 

In  1894,  in  adjudging  Phelan  guilty  of  contempt  for  disobey- 
ing the  injunction  secured  to  prevent  interference  with  the 
operation  of  the  Cincinnati^Southern  Railway  and  to  keep  open 


136  f  LABOR. 

interstate  commerce.  Judge  Taft,  in  determining'  the  limits  of 
labor  organizations,  made  a  notable  statement  of  the  extent 
of  the  rights  of  labor  which  has  since  been  frequently  and  suc- 
cessfully quoted  by  those  contending  in  the  interests  of  union 
labor. 

In  1899  Judge  Taft  became  the  champion  of  the  cause  of 
union  labor  in  the  Narramore  case,  and  as  a  judge  of  the  U. 
S.  Circuit  Court  of  Appeals,  reversed  the  decision  of  the  court 
below  and  wrote  an  opinion  that  has  finally  become,  in  spirit 
and  in  letter,  the  established  law  not  only  of  Ohio,  but  of  the 
nation.  He  took  an  impregnable  position  against  precedents 
and  numerous  decisions  which  had  declared,  in  effect,  that,  where 
an  employer  was  violating  the  law  with  regard  to  the  use  of 
safety  appliances,  an  injured  workman  could  not  recover  dam- 
ages because  he  was  supposed  to  know  of  the  violation,  and 
to  assume  all  risks  consequent  thereto. 

As  Governor-General  of  the  Philippines,  he  encouraged  the 
organization  of  workmen  into  unions  that  should  be  organized 
on  American  lines,  and  pardoned  a  labor  leader  who  had  been 
convicted  under  an  old  Spanish  law  for  "conspiring  to  raise 
the  wages  of  labor." 

As  Governor-General  Mr.  Taft  refused  to  accede  to  the  de- 
mands of  corporations  and  other  employers  to  permit  the  in- 
troduction of  cheap  Chinese  labor  into  the  islands,  and  unequiv- 
ocally declared  himself  against  bringing  the  'workmen  of  our 
new  dependencies  or  those  in  our  own  land,  into  competition 
with  the  cheaper  labor  of  the  civilizations  lower  than  our  own. 

Mr.    Taft'a    Decisions    Relative    to    Labor. 

Frederick  N.  Judson,  the  attorney  for  the  Heading  Brother- 
hood in  the  Wabash  case,  says : 

"There    is    no    foundation,    therefore,    for   the    suggestion    that    the    de- 
cisions of  Judge  Taft  were  in  any  sense  unfriendly  to  labor." 

One  should  read  in  the  Review  of  Reviews  for  August,  1907, 
what  Mr.  Judson  says  of  the  whole  series  of  Judge  Taft's  labor 
decisions.  The  first  of  these  decisions  was  delivered  by  Judge 
Taft  in  1890  in  the  case  of  Moores  vs.  Bricklayers'  Union  et  al. 
This  case  involved  the  application  of  the  law  to  what  is  known 
as  a  secondary  boycott;  that  is,  a  boycott  not  against  an  em- 
ployer, but  against  a  third  party  dealing  with  an  employer,  who 
is  a  stranger  to  the  controversy  between  the  employer  and  the 
employee. 

Moores  had  sold  lime  to  the  employer,  Parker  Brothers,  who 
had  been  boycotted  by  the  union.  Parker  Brothers  had  been 
boycotted  because  of  their  refusel  to  pay  a  fine  imposed  upon  one 
of  their  employees  and  to  reinstate  a  discharged  apprentice. 
Moores,  the  plaintiffs,  had  been  awarded  damages  by  the  jury 
on  account  of  this  secondary  boycott,  and  it  was  this  judgment 
of  damages  that  was  affirmed  on  appeal  in  an  opinion  by  Judge 
Taft.  This  decision  has  been  accepted  as  the  correct  exposition 
of  the  law;  and  the  secondary  boycott,  that  is,  a  boycott  against 
a  stranger  to  the  trade  dispute,  has  been  practically  abandoned 
by  intelligent  labor  unionists  as  an  unreasonable  weapon.  In 
other  words,  it  has  been  conceded  by  the  ablest  labor  leaders 
that  it  is  not  good  policy  to  punish  one's  friends — employers  who 
are  running  union  shops — for  the  purpose  of  defeating  one's  ene- 
mies. 

The  labor  decisions  of  Judge  Taft  while  on  the  Federal  bench 
related  directly  to  the  Federal  character  of  such  controversies, 
involving  the  power  of  the  Federal  Government  to  protect  inter- 
state commerce.  There  were  only  two  such  cases  decided  by  him. 
The  first  of  these  was  decided  April  3,  1893,  and  was  in  the  mat- 
ter of  the  strike  of  the  engineers  of  the  Toledo  and  Ann  Arbor 
railroad.  The  engineers  on  strike  refused  to  handle  cars  from 
complainants'  road  as  long  as  the  strike  of  the  engineers  on  that 
road  was  unsettled.  It  is  obvious  that  this  action  involved  a  pa- 
ralysis of  the  business  of  interstate  commerce.  The  Toledo 
road  thereupon  applied  for  an  injunction  against  the  connecting 
roads,  alleging  a  combination  violative  of  the  interstate  com- 
merce act.     Judge  Taft's  decision  sustaining  the  injunction  was 


LABOR.  137 

accepted  by  the  Railroad  Brotherhood  as  a  fair  statement  of 
the  law  under  the  peculiar  conditions  of  the  railroad  service. 

In  the  following  year,  1894,  came  the  great  railroad  strike  in- 
spired by  the  American  Railroad  Union,  growing  out  of  the 
strike  of  the  Pullman  employees  at  Pullman,  Illinois.  The  offi- 
cials of  the  union  demanded  all  railroads  to  boycott  Pullman 
cars  and  to  declare  a  strike  of  employees  on  any  railroad  on  their 
refusal  to  declare  such  a  boycott.  The  Cincinnati  Southern,  an  in- 
terstate railway,  was  in  the  hands  of  a  receiver,  and  it  applied  to 
the  court  for  protection  against  one  Phelan  (a  Socialist),  an  offi- 
cial of  the  American  Railway  Union,  who  was  engaged  in  inciting 
a  strike  among  the  employees  of  the  road.  There  was  no  com- 
plaint by"  the  employees  of  this  road.  The  demand  was  that  all 
traffic  should  be  suspended  and  business  paralyzed,  union  shops 
closed,  and  union  industries  destroyed,  if  necessary,  until  all  the 
roads  should  consent  not  to  carry  Pullman  cars.  The  purpose 
was  to  starve  the  public  into  compelling  the  Pullman  Company 
to  do  something  which  the  public  had  no  right  to  compel  it  to 
do,  and  in  the  doing  of  this  to  inflict  irreparable  injury  upon 
many  industries  employing  union  workmen  and  working  union 
hours.  If  the  unions  had  won  in  this  strife,  would  not  the  price 
have  been  too  great  for  the  object  attained?  Phelan  had  used 
language  defying  the  order  of  the  court.  After  a  hearing  he  was 
adjudged  guilty  of  contempt  in  an  opinion  by  Judge  Taft,  who  at 
the  same  time  emphasized  the  fact  that  employees  had  the  right 
to  quit  their  employment,  but  that  they  had  no  right  to  combine 
to  injure  their  employer  in  order  to' compel  him  to  withdraw 
from  a  mutually  profitable  relation  with  a  third  party  for  the 
purpose  of  injuring  the  third  party,  when  the  relation  thus 
sought  to  be  broken  had  no  effect  upon  the  character  or  reward 
of  their  services.  But  as  the  purpose  of  the  combination  was  to 
tie  up  interstate  railroads,  not  as  the  incidental  result  of  a  law- 
ful strike  for  the  betterment  of  the  employees'  own  condition, 
but  as  a  means  of  injuring  a  third  party,  it  was  an  unlawful 
combination  violative  of  the  anti-trust  act  of  1890.  Thus,  if 
Phelan  had  urged  a  strike  for  higher  wages,  or  to  prevent  the 
lowering  of  wages,  he  would  not  have  been  liable  for  contempt, 
but  he  had  no  right  to  incite  men  to  quit  when  they  had  no 
grievance  of  their  own  to  redress,  for  it  was  then  essentially  a 
boycott  and  not  a  strike. 

The  words  of  Judge  Taft  in  the  Phelan  case,  setting  forth  the 
rights  of  labor  organizations  under  the  law,  were  invoked  and 
applied  in  favor  of  the  labor  unions  in  a  notauie  case,  that  of  a 
strike  on  the  Wabash  Railroads  by  the  Brotherhoods  of  Railroad 
Trainmen  and  Firemen  in  1903.  The  two  brotherhoods,  after 
failing  to  secure  the  advance  wages  and  betterment  of  conditions 
demanded,  had  called  a  strike,  and  thereupon  an  injunction  was 
filed  by  the  railroad  company  against  the  officers  of  the  broth- 
erhoods. The  rights  of  organization  and  of  representation,  as  set 
forth  by  Judge  Taft,  were  made  the  basis  of  the  argument  by  the 
attorney  representing  the  brotherhoods,  and  the  injunction  was 
dissolved.  It  was  said  in  the  opinion  rendered  by  Judge  Adams 
that  on  the  subject  of  the  organization  of  labor  and  the  rights 
of  labor  unions  no  one  had  spoken  more  clearly  and  acceptably 
than  Judge  Taft. 

The   "Assumed  Risk"  Decision. 

One  of  the  most  notable  services  that  Judge  Taft  rendered  to 
organized  labor  while  presiding  over  a  court  was  with  relation  to 
"assumed  risk"  and  "contributory  negligence"  on  the  part  of  a 
workman  attempting  to  recover  damages  from  an  employer  for 
injuries  received  while  in  the  service  of  the  latter.  In  1895  the 
Supreme  Court  of  Ohio,  consisting  of  six  judges,  decided  that 
Morgan,  a  coal  miner,  could  not  recover  damages  for  injuries 
received  in  the  explosion  of  fire  damp,  notwithstanding  the  fact 
that  the  State  required  the  mine  owners  to  keep  their  mines  free 
of  fire  damp ;  that  Morgan  knew  the  company  ignored  the  law, 
and  therefore  in  accepting  service  with  them  he  could  not  re- 
cover  damages.     A   similar   decision   had  been   made   in   several 


138  LABOR. 

other  States.    Judge  Speer,  who  wrote  the  opinion  in  the  Morgan 
ease,  said : 

"One  who  voluntarily  assumes  a  risk  thereby  waives  the  provision  of 
the  statute  made   for  his  protection." 

Under  this  decision  only  a  law-observing  employer  was  liable 
to  damages.  The,  labor  organizations  introduced  a  bill  in  the 
General  Assembly  of  Ohio  to  abolish  this  doctrine  of  assumed 
risk,  but  through  the  power  of  the  railroads  and  other  corpor- 
ations and  large  employers  it  was  referred  to  a  hostile  com- 
mittee and  there  buried. 

And  now  we  come  to  the  Narramore  case,  in  which  Judge  Taft 
became  the  champion  of  the  injured  workman,  and  wrote  a  de- 
cision that,  notwithstanding  reversals  in  the  higher  courts  and 
the  bitter  opposition  of  those  who  were  opposed  to  abrogating 
the  old  doctrines,  finally  became  in  spirit  and  in  letter  the  es- 
tablished law  not  only  of  Ohio,  but  of  the  nation. 

Narramore  was  a  brakeman.  His  foot  became  tightly  wedged 
in  an  unblocked  frog,  which  was  left  open  contrary  to  the  law  of 
the  State,  and  he  was  run  down  by  a  train  and  left  a  cripple, 
with  a  wife  and  children  to  support.  The  company  was  indiffer- 
ent to  the  sufferings  of  the  man  and  his  family,  and  a  suit  was 
filed.  The  decision  was  against  him,  the  railroad  basing  its  de- 
fense on  the  decision  in  the  Morgan  case.  The  court  in  sub- 
stance said  that  Narramore  knew  that  the  company  violated  the 
law  with  regard  to  blocking  of  frogs ;  that  this  violation  was  so 
flagrant  and  open  that  Narramore  was  bound  to  know  of  it ;  and 
that  even  though  he  was  free  from  fault  himself,  still  he  had  no 
case,  as  he  had  assumed  the  risk  of  working  under  the  conditions 
as  he  saw  them.  Narramore's  case  was  then  carried  to  the 
United  States  Circuit  Court  of  Appeals,  presided  over  by  Judge 
William  H.  Taft.  Here  at  last  was  a  judge  who  was  broad 
enough  to  look  beyond  the  moldy  precedents  of  the  dark  ages. 
He  overthrew  the  barbarous  doctrine  of  "assumed  risk,"  and 
gave  to  the  workman  in  every  dangerous  vocation  the  rights  that 
had  so  long  been  withheld  from  him.  This  decision  of  Judge  Taft 
was  the  advance  agent  of  blocked  frogs,  covered  cogwheels,  and 
guarded  machinery.  It  eventually  led  to  the  resurrection  of  all 
the  laws  of  Ohio  that  had  been  enacted  for  the  protection  of 
working  men  and  women  and  which  had  been  nullified  by  the 
action  of  the  Supreme  Court  in  the  Morgan  case.  He  said  in 
part: 

"The  intention  of  the  legislature  of  Ohio  was  to  protect  the  employees 
of  railways  from  injury  from  a  very  frequent  source  of  danger  by  com- 
pelling the  railway  company  to  adopt  a  well-known  safety  device.  And 
although  an  employee  impliedly  waives  a  compliance  with  the  statute  and 
agrees  to  assume  the  risk  from  unblocked  frogs  and  switches  by  continuing 
in  the  service  without  complaint,  this  court  will  not  recognize  or  enforce 
such  agreement.  The  impositions  of  a  penalty  for  the  violation  of  a  statute 
does  not  exclude  other  means  of  enforcement,  and  to  permit  the  company  to 
vail  itself  of  such  an  assumption  of  risk  by  its  employees  is,  in  effect,  to 
enable  it  to  nullify  a  penal  statute,  and  is  against  public  policy." 

Judge  Taft  was  overruled,  but  the  fight  based  on  his  opinions 
was  continued  until  satisfactory  statutes  were  secured. 


The    Federal    Courts    and    Organized    Labor. 

As  early  as  August  28,  1895,  in  an  address  delivered  before 
the  American  Bar  Association  at  Detroit,  Michigan,  he  said : 

»  *  *  Though  the  law  of  supply  and  demand  will  doubt- 
less, in  the  end,  be  the  influence  of  fixing  this  division  (between 
capital  and  labor),  yet  during  the  gradual  adjustment  to  the 
changing  markets  and  the  varying  financial  conditions,  capital 
will  Nitrchi  have  the  advantage,  unless  labor  takes  united  action. 
During  the  betterment  of  business  conditions,  organized  labor,  if 
acting  with  reasonable  discretion,  can  secure  much  greater  con- 
cessions in  the  advance  of  wages  than  if  it  were  left  to  the  slower 
operation  of  natural  laws,  and,  in  the  same  way,  as  hard  times 
come  on,  the  too  eager  employer  may  be  restrained  from  undue 
haste  in  reducing  wages.  The  organization  of  capital  into  corpo- 
rations, with  the  position  of  advantage  which  this  gave  in  a 
dispute  with   single   laborers    over    wages,  made    it    absolutely 


LABOR.  139 

necessary  for  labor  to  unite  to  maintain  itself.  For  instance, 
how  could  working-men,  dependent  on  each  day's  wages  for 
living-,  dare  to  take  a  stand  which  might  leave  them  without 
employment  if  they  had  not  by  small  assessments  accumulated 
a   common   fund  for  their  support  during*  such  emergency. 

"The  efficacy  of  the  processes  of  a  court  of  equity  to  prevent 
much  of  the  threatened  injury  from  the  public  and  private  nui- 
sances which  it  is  often  the  purpose  of  the  leaders  of  such  strike 
to  cause,  has  led  to  the  charge,  which  is  perfectly  true,  that  judi- 
cial action  has  been  much  more  efficient  to  restrain  labor  ex- 
cesses than  corporate  evils  and  greed.  If  it  were  possible  by  the 
quick  blow  of  an  injunction  to  strike  down  the  conspiracy  against 
public  and  private  rights  involved  in  the  corruption  of  a  legisla- 
ture or  a  council,  Federal  and  other  courts  would  not  be  less 
prompt  to  use  the  remedy  than  they  are  to  restrain  unlawful 
injuries  by  labor  unions.  But  I  have  had  occasion  to  point  out 
that  the  nature  of  corporate  wrongs  is  almost  wholly  beyond  the 
reach  of  courts,  especially  those  of  the  United  States.  The  cor- 
porate miners  and  sappers  of  public  virtue  do  not  work  in  the 
open,  but  under  cover ;  their  purposes  are  generally  accomplished 
before  they  are  known  to  exist,  and  the  traces  of  their  evil  paths 
are  destroyed  and  placed  beyond  the  possibility  of  legal  proof. 
On  the  other  hand,  the  chief  wrongs  committed  by  labor  unions 
are  the  open,  defiant  trespass  upon  property  rights  and  viola- 
tions of  public  order,  which  the  processes  of  the  courts  are  well 
adapted  both  to  punish  and  prevent." 

The  operation  of  the  interstate  commerce  law  is  an  illus- 
tration of  the  greater  difficulty  courts  have  in  suppressing  cor- 
porate violations  of  law  than  those  of  trade  unions.  The  dis- 
crimination between  shippers,  by  rebates  and  otherwise,  which 
it  is  the  main  purpose  of  the  law  to  prevent,  is  almost  as  diffi- 
cult of  detection  and  proof  as  bribery,  for  the  reason  that  both 
participants  are  anxious  to  avoid  its  disclosures ;  but  when  the 
labor  unions,  as  they  sometimes  do,  seek  to  interfere  with 
interstate  commerce  and  to  obstruct  its  flow,  they  are  prone 
to  carry  out  their  purposes  with  such  a  blare  of  trumpets  and 
such  open  defiance  of  law  that  the  proof  of  their  guilt  is  out 
of  their  own  mouths.  The  rhetorical  indictments  against  the 
Federal  courts,  that  from  that  which  was  intended  as  a  shield 
against  corporate  wrong,  they  have  forged  a  weapon  to  attack 
the  wage-earner,  is  in  this  way  given  a  specious  force  which  a 
candid  observer  will  be  blind  to  ignore. 

As  a  matter  of  fact  there  is  nothing  in  any  Federal  de- 
cision directed  against  the  organization  of  labor  to  maintain 
wages  and  to  secure  terms  of  employment  otherwise  favorable. 
The  courts,  so  far  as  they  have  expressed  themselves  on  the  sub- 
ject, recognize  the  right  of  men  for  a  lawful  purpose  to  com- 
bine to  leave  their  employment  at  the  same  time,  and  to  use 
the  inconvenience  this  may  cause  to  their  employer  as  a  legiti- 
mate weapon  in  the  frequently  recurring  controversy  as  to  the 
amount  of  wages.  It  is  only  when  the  combination  is  for  an 
unlawful  purpose  and  an  unlawful  injury  is  thereby  sought  to 
be  inflicted,  that  the  combination  has  received  the  condemnation 
of  the  Federal  as  well  as  of  State  courts. 

Mr.  Taft's   Labor  Record  in  the  Philippines. 

And  now  let  every  trade  unionist  follow  Mr.  Taft  into  the 
Philippines,  and  from  the  report  of  some  of  labor's  most  trusted 
representatives  learn  the  truth ;  learn  whether  Governor-Gen- 
eral Taft  fitly  represented  the  best  that  there  is  in  our  American 
civilization.  If  so,  he  relied  not  only  upon  the  churches  and 
the  introduction  of  public  schools  to  uplift  a  dependent  people, 
but  he  encourag-ed  the  organization  of  unions  on  American  lines 
to  aid  in  the  great  work.  No  class  of  men  will  resent  being 
imposed  on  more  quickly  than  union  workers,  and  those  who 
have  held  up  Mr.  Taft  as  opposed  to  organized  labor  must  now 
take  the  condemnation  that  honest  men  place  upon  falsifiers. 
He  wants  no  favors;  he  wants  what  every  self-respecting  trade 


140  LABOR. 

unionist  wants — justice,  and  he  will  get  it  from  organized  labor 
when  the  truth  is  illuminated  and  they  understand  him  and 
know  his  record. 

Mr.  Edward  Rosenberg,  of  San  Francisco,  was  appointed  by 
the  American  Federation  of  Labor  a  special  commissioner  to 
investigate  labor  conditions  in  the  Far  East.  His  reports  were 
printed  in  the  October  and  December  (1903)  numbers  of  the 
American  Federationist,  the  official  organ  of  the  American  Fed- 
eration of  Labor.  The  contrast  between  the  deplorable  conditions 
of  the  wage-earner  in  the  Hawaiian  Islands  and  the  satisfactory 
state  of  affairs  introduced  by  the  administration  of  Governor- 
General  Taft  in  the  Philippines  is  well  brought  out  by  Mr.  Rosen- 
berg's exhaustive  study.  In  the  December  (1903)  American 
Federationist,  he  says : 

"I  would  say  that  *  *  the  plea  of  the  Europeans  and  Americans  for 
Chinese  labor  is  prompted  by  the  desire  to  quickly  enrich  themselves  with 
the  aid  of  cheap  Mongolian  labor.      *      * 

"If,  on  the  other  hand,  the  present  policy  of  the  Government  is  con- 
tinued; if  Chinese  are  excluded  ;  if  opportunity  is  given  to  labor  to  better 
its  condition  by  the  aid  of  trade  unions;  if  children  are  educated  along 
American  lines,  and  if  the  greed  of  European  and  American  adventurers  is 
not  allowed  to  rule  the  Philippine  Islands  as  it  now  rules  the  Hawaiian 
Islands,  the  American  people  in  another  generation  will  be  able  to  point 
with  justifiable  pride  to  the  success  of  democratic  institutions  among  an 
Asiatic  people,  and  forget  in  these  achievements  the  injustice  by  the  con- 
quest of  arms  of  the  Philippine  Islands." 

With  regard  to  conditions  in  the  Philippines  as  inaugurated 
and  maintained  by  Governor  Taft,  Mr.  Rosenberg  further  says 
(American   Federationist,   October,    1903)  : 

"The  civil  government  is  slowly  but  steadily  proving  to  the  Filipinos 
that  American  rule  is  really  trying  to  make  the  Filipinos  as  fit  for  self-gov- 
ernment as  the  American  people  are  ;  that  the  purpose  of  American  rule  is 
not  the  exploitation  of  the  natives,  but  their  elevation.  Should  Chinese  be 
allowed  in  here  and  the  inevitable  lowering  of  the  already  low  wages  take 
place,  the  toork  of  the  Commission  would  be  undone,  and  where  now  hope 
of  a  better  day  is  springing  up  in  the  hearts  of  the  natives,  sullen  despair 
and  dangerous  resentment  would  take  its  place. 

"My  investigations  as  to  the  present  system  ef  exclusion,  capried  on 
under  the  law  of  April  20,  1902, 'shows  that  s'o  far  as  it  is  known  it 
effectively    excludes    the   Chinese.      *      * 

"The  trade  unions  constitute  a  great  moving  force  for  the  betterment 
of  the  conditions  in  these  islands.  With  their  aid  wages  have  been  raised 
and  many  abuses  abolished,  and  though  the  present  system  is  crude  and 
faulty,  steps  are  now  being  taken  to  place  it  on  the  well-tried  trade  union 
lines  as  adopted  in  the  United  States  and  affiliate  the  movement  here  with 
the  American  Federation  of  Labor.  *  *  In  June,  1899,  the  Filipino 
workers  of  Manila  made  the  first  attempt  to  oragnize  trade  unions.  In  a 
short  time  unions  of  barbers,  cigar  makers,  tobacco  workers,  clerks,  car- 
penters, wood  woakers,  printers,  lithographers,  and  others  were  formed.  No 
attempt  at  federation  was  made  until  the  return  from  Spain  of  Isabelo  de 
los  Reyes  in  June,  1901.  Reyes  had  been  banished  from  Spain  by  the 
Spanish  Government  for  urging  reforms  in  the  islands.  He  quickly  suc- 
ceeded in  federating  the  respective  unions,  and  was  chosen  President.  He 
held  this  positi'on  for  a  little  over  a  year.  Many  unions  were  organized 
during  the  period,  the  number  of  unions  in  June,  1902,  being  150,  with  a 
membership   estimated   at   20,000.      *      *" 

"The  local  American  press  and  employers  of  labor  generally  denounced 
Reyes,  resulting  in  his  being  charged,  under  an  old  Spanish  law,  'with  con- 
spiring to  raise  wages  of  laborers.'  In  September,  1902,  he  was  found 
guilty  and  sentenced  to  four  months  in  jail.  He  served  two  months  and 
was  then  pardoned  by  Governor  Taft." 

Governor  Taft  pardoned  the  man  not  because  he  was  not  prop- 
erly convicted  under  the  law,  but  because,  as  he  said : 

"The  statute  is  not  in  accordance  with  modern  American  views.  The 
right  of  laborers  to  unite  for  the  purpose  of  enhancing  labor  by  withdrawing 
from  the  employment  of  those  who  make  the  demand  for  labor  is  generally 
conceded  under  American  jurisprudence.  In  the  new  criminal  code  *  *  the 
American  rules  of  jurisprudence  are  recognized,  and  no  combination  merely 
to  enhance  labor  can  be  wrougful  because  of  the  excessive  price  requested 
or  of  the  number  engaged  in  the  combination.  For  this  reason,  and  because 
I  do  not  think  the  statute  as  construed  to  be  in  accordance  with  American 
principles,  I  shall  pardon  Isabelo  de  los  Reyes  and  remit  what  remains  of  his 
sentenoe." 

Mr.  Rosenberg  speaks  of  a  personal  meeting  with  Governor 
Taft.  What  he  says  is  now  of  particular  significance,  in  view 
of  the  charge  that  some  have  made  that  Mr.  Taft  only  be- 
came favorable  to  organized  labor  after  he  became  a  candidate 
for  the  Presidency.  The  quotation  from  Mr.  Rosenberg's  report 
follows : 

"On  June  31  Governor  Taft  returned  from  Baguio,  the  summer 


LABOR.  141 

capitol  of  the  civil  government,  and  on  the  23rd  I  had  an  inter- 
view with  him,  desiring  to  know  the  attitude  of  the  Governor 
toward  the  organization  of  the  workers.  He  said  he  favored  the 
organization  of  the  workers  in  trade  unions,  and  had  so  stated, 
but  that  the  Union  Obrera  Democrat-ica  de  Filipinas  of  late 
had  only  harmed  the  cause  of  the  workers,  and  the  courts  had 
to  interfere.  He  Wished  success  to  the  present  movement  to 
organize  the  workers  on  proper  trade  union  lines.  He  referred 
me  also  to  certain  portions  of  his  report  lor  tiie  year  ending 
October  1,  1902.  I  quote  the  following  from  Governor  Taft's 
report : 

"During  the  year  1902  there  has  been  a  movement  for  the  organization 
of  labor  in  the  city  of  Manila,  which  doubtless  will  spread  to  other  parts 
of  the  islands.  It  has  been  regarded,  because  of  abuses  which  crept  in,  as 
an  unmixed  evil.  I  can  not  think  it  to  be  so.  If  properly  directed,  it  may 
greatly  assist  what  is  absolutely  necessary  here,  to  wit,  the  organization  of 
labor  and  the  giving  to  the  laboring  class  a  sense  of  the  dignity  6f  labor 
and  of  their  independence.  The  labor  organizations  in  the  city  of  Manila 
are  very  much  opposed  to  the  introduction  of  Chinese  labor,  and  their 
declaration  upon  this  point  will  find  ready  acquiescence  in  the  minds  of 
all  Filipinos  with  but  few  exceptions.  The  truth  is  that,  from  a  political 
standpoint,  the  unlimited  introduction  of  the  Chinese  into  these  islands 
would  be  a  great  mistake.  I  believe  the  objection  on  the  part  of  the  Fili- 
pinos to  such  a  course  to  be  entirely  logical  and  justified.  The  develop- 
ment of  these  islands  by  Chinamen  would  be  at  the  expense  of  the  Fili- 
pino people,  and  they  may  very  well  resent  such  a  suggestion." 

Blacklisted     Laborer     Should  be    Allowed    Injunction.— Injury 
of  Railway   Employees. 

At  the  close  of  Mr.  Taft's  speech  before  Cooper  Institute 
in  New  York  City  on  January  10,  1908,  among  other  questions 
he  was  asked  the  following : 

"Why  should  not  a  blacklisted  laborer  be  allowed  an  injunc- 
tion as  well  as  a  boycotted  capitalist?" 

Mr.  Taft  promptly  answered: 

"He  ought  to  be,  and  if  I  was  on  the  bench  I  would  give  him 
one  mighty  quick/' 

In  Mr.  Taft's  speech  at  Columbus,  Ohio,  on  August  19,  1907, 
he  said,  with  regard  to  the  injury  of  railway  employees : 

"The  frightful  loss  of  life  and  limb  among  the  railway  em- 
ployees of  this  country,  reaching  more  than  4,000  killed  and 
65,000  injured  in  one  year,  has  properly  attracted  the  attention 
of  Congress  and  the  legislatures.  It  makes  apparent  that  ser- 
vice in  connection  with  trains  of  a  railway  is  an  extra  hazardous 
business  and  may  well  call  for  Government  supervision  and  ex- 
ceptional rules  to  secure  the  safety  of  the  passengers  and  reduce 
the  danger  to  employees." 

With  regard  to  a  statutory  rule*  for  liability  of  interstate 
railways  to  employees,  he  said : 

"Finally,  it  has  regulated  the  rules  for  liability  of  an  inter- 
state railway  company  to  an  employee  injured  in  its  service. 
This  is  a  most  important  measure,  for  an  unfortunate  lack  of 
uniformity  has  existed  heretofore  in  respect  to  the  rules  of  lia- 
bility in  such  cases,  dependent  on  the  court* in  which  the  case 
has  been  tried.  The  new  statute  makes  everything  uniform  as 
to  interstate  railroads.  It  has  introduced  into  the  Federal  law 
what  is  called  the  comparative  negligence  theory  by  which,  if 
an  employee  is  injured,  proof  of  negligence  on  his  part  does  not 
forfeit  his  claim  for  damages  entirely  unless  the  accident  was 
due  solely  to  his  negligence.  If  there  was  negligence  by  the 
company,  the  jury  is  authorized  to  apportion  the  negligence 
and  award  compensation  for  the  proper  part  of  the  damages  to 
the  employee  and  the  question  of  negligence  is  always  for  the 
jury. 

"The  most  important  provision  of  this  law,  however,  is  that 
abolishing  what  is  known  as  the  fellow-servant  rule,  by  whicli 
an  employee  injured  cannot  recover  from  his  employer  for  in- 
jury sustained  through  negligence  of  a  co-employee.  This  rule 
was  incorporated  into  the  law  by  Chief  Justice'  Shaw  of  Massa- 
chusetts, on  the  ground  of  public  policy.  It  was  acquiesced  in 
by  the  courts  of  England  and  of  this  country.  Wherever  may 
have  been  the  wisdom  of  the  rule  originally,  a  change  of  con- 
ditions justifies  its  abrogation." 


142  LABOB. 

MR.  TAFT'S  ANSWERS,  JANUARY  6,  1908,  TO  QUESTIONS 
PROPOUNDED  BY  THE  PRESIDENT  OP  THE  OHIO  FED- 
ERATION   OF    LABOR. 

Approves    Defining   Parties'    Rights. 

"I  see  no  objection  to  the  enactment  of  a  statute  which  shall 
define  the  rights  of  laborers  in  their  controversies  with  their 
former  employers.  As  this  statute  would  fix  the  lawful  limits 
of  their  action,  it  would  necessarily  furnish  a  definite  rule  for 
determining  the  cases  in  which  injunctions  might  issue,  as  well 
as  their  character  and  scope.  It  should  be  said  that  this  statute, 
however,  if  enacted  by  Congress,  could  relate  only  to  the  Dis- 
trict of  Columbia  or  some  place  within  the  exclusive  juris- 
diction of  the  Federal  government,  or  to  those  employers  and  em- 
ployees whose  relations  are  within  congressional  definition  and 
control! 

"Generally,  the  law  governing  the  relation  between  employer 
and  employee  is  a  State  law  and  is  only  enforced  in  the  Federal 
courts  when  the  jurisdiction  arises  by  reason  of  the  diverse 
citizenship  of  the  parties.  Speaking  generally,  however,  both 
as  to  Federal  and  State  legislation,  I  see  no  objection  to  a 
statue  which  shall,  so  far  as  possible,  define  the  rights  of 
both  parties  in  such  controversies  more  accurately.  Indeed, 
the  more  exactly  the  lawful  limitations  on  the  actions  of  both 
parties  are  understood,  the  better  for  them,  and  for  the  public. 

Hearing  Before  an  Injunction. 

"Second.  You  ask  me  what  I  think  of  a  provision  that  no 
restraining  order  or  injunction  shall  issue,  except  after  notice 
to  the  defendant  and  a  hearing  had.  This  was  the  rule  under 
the  Federal  statute  for  many  years,  but  is  was  subsequently 
abolished.  In  the  class  of  cases  to  which  you  refer  I  do  not  see 
any  objection  to  the  re-enactment  of  that  Federal  statute.  In- 
deed, I  have  taken  occasion  to  say  in  public  speeches  that  the 
power  to  issue  injunctions  ex  parte  has  given  rise  to  certain 
abdses  and  injustice  to  the  laborers  engaged  in  a  peaceable 
strike.  Men  leave  employment  on  a  strike ;  counsel  for  the  em- 
ployer applies  to  a  judge  and  presents  an  affidavit  averring  fear  of 
threatened  violence  and  making  such  a  case  on  the  ex  parte  state- 
ment that  the  judge  feels  called  upon  to  issue  a  temporary  re- 
straining order.  The  temporary  restraining  order  is  served  on 
all  the  strikers ;  they  are  not  lawyers ;  their  fears  are  aroused 
by  the  process  with  which  they  are  not  acquainted ;  and,  al- 
though their  purpose  may  Have  been  entirely  lawful,  their  com- 
mon determination  to  carry  through  the  strike  is  weakened  by 
an  order  which  they  never  have  had  an  opportunity  to  question. 
and  which  is  calculated  to  discourage  their  proceeding  in  their 
original  purpose.  To  avoid  this  injustice,  I  believe,  as  I  have 
already  said,  that  the  Federal  statute  might  well  be  made  what 
it  was  originally,  requiring  notice,  and  a  hearing,  before  an  in- 
junction issues. 

"Third.  In  answer  to  your  third  question,  it  would  seem  that 
it  is  unnecessary  to  impose  any  limitation  as  to  the  time  for  a 
final  hearing,  if,  before  an  injunction  can  issue  at  all,  notice 
and  hearing  must  be  given.  The  third  question  is  relevant  and 
proper,  only  should  the  power  of  issuing  ex  parte  injunctions 
be  retained  in  the  court.  In  such  case,  I  should  think  it  emi- 
nently proper  that  the  statute  should  require  the  court  issuing 
an  ex  parte  injunction  to  give  the  person  against  whom  the  in- 
junction was  issued  an  opportunity  to  have  a  hearing  thereon 
within  a  very  short  space  of  time,  not  to  exceed,  I  should  say, 
three  or  four  days. 

Might    Designate    Another    Judge. 

"Fourth.  Your  fourth  query  is,  in  effect,  what  would  I  think 
of  a  provision  in  such  cases  by  which  the  contemnor — that  IB* 
the  person  charged  with  the  violation  of  an  order  of  injunction — 
might  object  to  the  judge  who  issued  the  injunction  as  the  one 


LABOR.  ~  143 

to  try  the  issue  whether  the  injunction  had  been  violated,  and 
to  fix  punishment  in  case  of  conviction,  and  thereby  require 
another  judge  to  try  the  issue  and  impose  sentence,  if  neces- 
sary. In  Federal  courts  in  such  a  case  it  would  be  proper  to 
provide  that  the  senior  circuit  judge  of  the  circuit  should,  upon 
the  application  of  the  defendant  or  contemnor,  designate  another 
district  or  circuit  judge  to  sit  and  hear  the  issue  presented.  I 
do  not  think  such  a  restriction  would  be  unreasonable.  In  most 
cases  it  would  be  unnecessary.  But  I  admit  that  there  is  a  popu- 
lar feeling  that  in  contempt  proceedings,  and  the  very  name  of 
the  proceedings  suggest  it,  that  the  judge  issuing  the  injunction 
has  a  personal  sensitiveness  in  respect  to  its  violation,  and  there- 
fore that  he  does  not  bring  to  the  trial  of  the  issue  presented 
by  the  charge  of  contempt  of  his  order  the  calm,  judicial  mind 
which  insures  justice. 


Opposes  Jury  Intervention. 

"I  think  that  this  popular  feeling  is,  in  most  cases,  unfounded, 
but  I  believe  that  it  is  better,  where  it  can  be  done  without 
injuring  the  authority  of  the  court  and  the  efficiency  of  its 
process,  to  grant  such  a  privilege  to  the  contemnor  and  thus 
avoid  an  appearance  of  injustice,  even  at  some  inconvenience 
in  the  matter  of  securing  another  judge.  There  is  some  analogy, 
though  it  is  not  complete,  between  the  exclusion  of  a  judge  from 
sitting  in  the  court  of  appeals  to  review  a  decision  of  his  own, 
which  now  obtains  in  the  practice  of  the  Federal  Court  of  Ap- 
peals, by  statute,  and  the  present  suggested  case.  It  is  of  the 
highest  importance  that  the  authority  of  the  court  to  enforce 
its  own  orders  effectively  should  not  be  weakened,  and  therefore 
I  am  opposed  to  the  intervention  of  a  jury  between  the  court's 
decree  and  its  enforcement  by  contempt  proceedings.  It  would 
mean  long  delay  and  greatly  weaken  the  authority  of  the  court. 

"I  do  not  think  that  the  permission  to  change  the  judge,  how- 
ever, would  constitute  either  serious  delay  or  injure  the  efficacy 
of  the  order,  while  it  may  secure  greater  public  confidence  in 
the  justice  of  the  court's  action.  The  appearance  of  justice 
is  almost  as  important  as  the  existence  of  it  in  the  adminis- 
tration of  courts." 

Concluding   Remark. 

The  foregoing  facts,  coupled  with  what  is  more  generally 
known  with  regard  to  his  great  achievements  as  a  jurist  and  a 
public  official,  should  appeal  to  every  man  of  right  reasoning' 
in  such  manner  as  to  convince  him  that,  as  President  of  the 
United  States,  Mr.  Taft's  great  intellect  and  power  would  be 
found  valiantly  contending  for  the  rights  of  the  laboring,  pro- 
ducing people. 

Mr.  Taft's   Own  Views,  Expressed  in  His   Own  Words. 

Mr.  Taft  discussed  this  subject  fully  and  frankly  in  his  speech 
of  acceptance  of  the  nomination  for  the  Presidency,  delivered 
to  the  Notification  Committee,  at  Cincinnati,  July  28,  1908. 


THE    LABOR   DECISIONS    OF    JUDGE    TAFT. 

By  Frederick  N.  Judson,  Attorney  for  the  Railroad  Brotherhood, 
Reprinted  from  the  August,  1907,  Review  of  Reviews. 

The  present  Secretary  of  War,  Hon.  William  Howard  Taft, 
has  had  the  exceptional  experience  of  beginning  his  distin- 
guished public  career  with  judicial  service  on  the  State,  and 
thereafter  serving  on  the  Federal  bench.  He  was  justice  of  the 
Superior  Court  of  Cincinnati  from  1887  to  1890,  and  among  his 
immediate  predecessors   in  that  court   were   Hon.   Judson   Har- 


144  LABOR. 

mon,  ex- Attorney-General  of  the  United  States ;  Hon.  Joseph  B. 
Foraker,  ex-Governor  and  now  United  States  Senator.  After 
some  two  years'  service  as  Solicitor-General  under  President 
Harrison,  Mr.  Taft  was  appointed  judge  of  the  Circuit  Court 
of  the  United  States,  holding  that  position  until  1900,  when  he 
resigned  to  accept  the  appointment  of  Governor  of  the  Philip- 
pines. 

It  has  been  intimated  from  time  to  time,  though  not  very 
definitely,  that  certain  decisions  of  Judge  Taft  while  on  the 
bench  were  unfriendly  to  organized  labor.  Such  suggestion, 
analyzed  in  view  of  the  position  of  the  judiciary  in  our  po- 
litical and  judicial  system,  is  really  an  imputation  upon  the 
intelligence  of  the  electorate.  A  judge  does  not  make  the  law, 
nor  does  he  decide  cases  according  to  his  private  judgment  of 
what  the  law  ought  to  be ;  but  he  declares  and  applies  the  rules 
of  law  to  the  facts  presented  as  he  finds  them  in  the  statutes 
or  adjudged  precedents,  the  recorded  depositories  of  the  law. 

It  is  true  that  our  unwritten  and  non-statutory  law  has 
been  termed  judge-made  law.  But  it  is.  only  in  a  very  limited 
sense,  if  at  all,  that  this  expressison  is  applicable  to  the  case 
of  an  individual  judge.  His  personality  may  be  impressed  upon 
the  development  of  the  law,  as  that  of  Judge  Taft  was  doubtless 
impressed,  by  the  clearness  of  his  grasp  of  the  fundamental 
principles  of  the  law  in  their  application  to  new  conditions ; 
but  his  opinions  must  be  in  harmony  with  the  current  trend 
of  judicial  authority,  and,  in  the  last  analysis,  with  the  ad- 
vance of  an  enlightened  public  opinion.  We  have  had  frequent 
instances  in  this  country  where  a  judge,  after  leaving  the  bench, 
has  become  a  candidate  for  public  office,  but  very  rarely  have 
the  judicial  decisions  of  a  judge  ever  been  discussed  with  refer- 
ence to  his  availability  for  a  public  office.  The  reason  is  ob- 
vious. The  high  intelligence  of  our  American  electorate  recog- 
nizes that  the  judges  do  not  speak  their  individual  judgments, 
but,  in  the  words  of  Blackstone,  "are  the  living  oracles  of  the 
law,"  who  declare  and  apply  the  laws  of  the  land. 

It  is  to  be  assumed,  therefore,  that  Judge  Taft  decided  cases 
involving  the  rights  and  duties  of  labor  and  capital,  as  he 
decided  other  cases  which  came  before  him,  according  to  the 
law  and  facts  as  presented  for  determination.  It  has  not  been 
intimated  that  he  did  not  declare  the  law  correctly,  or  that  his 
decisions  were  bad  law  in  any  legal  sense.  What,  therefore, 
is  really  meant  by  the  suggestion  is  that  the  law  as  declared 
in  certain  decisions  of  Judge  Taft  was  unsatisfactory  to  certain 
class  interests.  While  this  impersonal  position  of  a  judge  is 
clearly  recognized,  there  is  so  much  public  interest  in  questions 
relating  to  the  legal  rights  and  duties  of  combinations,  both 
in  capital  and  labor,  that  the  decisions  of  Judge  Taft  in  this 
class  of  cases  should  be  clearly  understood,  and  therefore  will 
be  briefly  reviewed  from  a  legal  and  not  from  a  partisan  point 
of  view. 

Moorei    vs.    Bricklayers'    Union    et    al. 

The  first  of  these  opinions  was  delivered  by  Judge  Taft  while 
on  the  Superior  Court  bench  of  Cincinnati  in  1890,  in  the  case 
of  Moores  vs.  Bricklayers'  Union  et  al.  (23  Weekly  Law  Bul- 
letin, 48).  This  case  is  interesting  as  involving  the  application 
of  the  law  to  what  is  known  as  a  secondary  boycott,  that  is, 
boycott  not  against  an  employer,  but  against  a  third  party  deal- 
ing with  an  employer,  who  is  a  stranger  to  the  controversy  be- 
tween the  employer  and  employee. 

This  was  not  an  injunction  suit,  nor  did  it  involve  any  issue 
between  the  employees  and  their  employer,  either  directly  or 
tnrough  any  refusal  to  handle  in  other  places  the  so-called 
"struck  work"  from  the  shop  of  the  employer.  It  was  a 
secondary  boycott  pure  and  simple,  in  the  form  of  a  suit  for 
damages  incurred  by  the  plaintiff  through  a  boycott  by  the 
Bricklayers'  Union,  declared  on  account  of  the  plaintiff's  selling 
lime  to  the  employer,  Parker  Bros.,  who  had  been  boycotted 
by  the  union.     This  primary  boycott  had  been  declared  against 


LABOR.  145 

Parker  Bros,  by  the  Bricklayers'  Union  because  of  their  (Parker 
Bros/)  refusal  to  pay  a  fine  imposed  upon  one  of  their  em- 
ployees, a  member  of  the  union,  and  to  reinstate  a  discharged 
apprentice. 

Parker  Bros,  had  brought  suit  and  had  recovered  damages 
before  a  jury  in  another  court  against  the  same  defendants 
on  account  of  this  same  boycott  (21  Weekly  Law  Bulletin, 
223).  Moore  Bros.,  the  plaintiffs,  had  been  awarded  $2,250 
damages  by  the  jury  on  account  of  this  secondary  boycott, 
and  it  was  this  judgment  which  was  affirmed  on  appeal  in  an 
opinion  by  Judge  Taft.  The  case  has  become  a  leading  one 
on  the  law  of  boycotting.  The  rights  of  legitimate  ocmpeti- 
tion  in  business  with  the  incidental  injuries  resulting  therefrom, 
as  illustrated  in  the  then  recently  decided  Mogul  Steamship 
case  in  .England,  was  distinguished  by  Judge  Taft  from  the 
case  then  at  bar,  where  the  immediate  motive  of  injuring  plain- 
tiff was  to  inflict  punishment  for  refusing  to  join  in  the  boy- 
cott of  a  third  party.  Such  a  motive  made  the  act  malicious 
and  legally  unactionable  in  the  case  of  an  individual  and  a 
fortiori  in  the  case  of  a  combination.  It  was  said,  after  review- 
ing the  English  cases :  "We  do  not  conceive  that  in  this  State 
or  country  a  combination  by  workingmen  to  raise  their  wages 
or  obtain  any  material  advantage  is  contrary  to  the  law,  pro- 
vided they  do  not  use  such  indirect  means  as  obscure  their 
original  intent,  and  make  their  combination  one  merely  mal- 
icious, to  oppress  and  injure  individuals." 

It  was  further  said  that  a  labor  union  could  provide  for 
and  impose  a  penalty  against  any  of  their  members  who  re- 
fused to  comply  with  such  regulations  as  the  association  made. 
They  could  unite  in  withdrawing  from  the  employ  of  any 
person  whose  terms  of  employment  might  not  be  satisfactory 
to  them,  or  whose  action  in  regard  to  apprentices  were  not 
to  their  liking,  but  they  could  not  coerce  their  employer  by 
boycotting  him  and  those  who  dealt  with  him ;  that  even  if 
acts  of  this  character  and  with  the  intent  are  not  actionable 
when  done  by  individuals,  they  become  so  when  they  are  the 
result  of  combination,  because  it  is  clear  that  the  terrorizing 
of  the  community  by  threats  of  exclusive  dealing  in  order  to 
deprive  one  obnoxious  member  of  means  of  sustenance  would 
become  both  dangerous  and  offensive.  This  decision,  subse- 
quently affirmed  by  the  Supreme  Court  of  Ohio  without  opinion, 
has  been  accepted  as  the  correct  exposition  of  the  law,  and 
the  secondary  boycott,  so-called,  that  is,  a  boycott  against  a 
stranger  to  the  trade  dispute,  has  been  practically  discontinued 
and  abandoned  by  intelligent  labor  unionists  as  an  unwise  and 
unreasonable  weapon  in  such  controversies. 

Toledo  and  Ann  Arbor  Engineers'  Strike  of  1893. 

The  so-called  labor  decisions  of  Judge  Taft  while  on  the  Fed- 
eral bench  related  directly  and  primarily  to  the  Federal  char- 
acter of  such  controversies,  in  that  they  involved  the  supremacy 
of  the  Federal  power  in  the  protection  of  interstate  commerce. 
Though  there  were  only  two  such  cases  decided  by  him,  the  de- 
cisions attracted  general  attention  on  account  of  the  widespread 
industrial  disturbances  in  1893-4. 

The  first  of  these  cases  was  decided  April  3,  1893,  in  the 
matter  of  the  strike  of  the  engineers  of  the  Toledo  and  Ann 
Arbor  Railroad  (54  Fed.  Rep.,  730).  The  engineers  on  strike 
were  members  of  the  Brotherhood  of  Locomotive  Engineers,  of 
which  P.  M.  Arthur  was  the  chief.  Under  the  then  rule  of 
the  Brotherhood,  known  as  rule  twelve,  the  engineers  in  the 
employ  of  the  connecting  railroad  companies,  members  of  the 
Brotherhood,  refused  to  handle  and  deliver  any  cars  of  freight 
from  complainant's  road  as  long  as  the  strike  of  the  engineers 
of  that  road,  who  were  members  of  the  Brotherhood,  was  un- 
settled. It  was  obvious  that  this  involved  practically  a  paralysis 
of  the  business  of  interstate  commerce  between  the  com- 
plainant and  the  defendant  railroads.    The  Toledo  road  thereupon 


146  LABOR. 

applied  for  an  injunction  against  the  connecting  roads,  al- 
leging- the  existence  of  a  combination  violative  of  the  Inter- 
state Commerce  Act  preventing-  the  performance  of  their  duties 
in  regard  to  interstate  commerce  in  the  exchange  of  traffic,  and 
asked  the  court  to  enjoin  this  unlawful  interference.  A  motion 
was  filed  by  the  complainant  for  a  temporary  injunction  against 
Mr.  Arthur  to  restrain  him  from  enforcing  rule  twelve,  where- 
under  the  employees  of  the  defendant  companies  were  refus- 
ing to  handle  the  ears  of  the  complainant  company. 

The  opinion  of  the  Court  by  Judge  Taft  was  notable  in  its 
lcear  expression  of  the  power  of  a  court  in  the  issuance  of 
a  mandatory  preliminary  injunction  where  necessary  to  pre- 
vent irreparable  injury.  "The  normal  condition,"  it  was  said, 
— "the  status  quo, — between  connecting  common  carriers,  under 
the  Interstate  Commerce  law  is  a  continuous  passage  of  freight 
backward  and  forward  between  them,  which  each  carrier  has 
a  right  to  enjoy  without  interruption,  exactly  as  riparian  own- 
ers have  a  right  to  the  continuous  flow  of  the  stream  without 
obstruction."  Usually  the  status  quo  in  the  injunction  can  be 
preserved  until  final  hearing  by  an  injunction  prohibitory  in 
form,  but  where  the  status  quo  is  not  a  condition  of  rest,  but 
of  action,  the  condition  of  rest,  that  is,  the  stoppage  of  traffic, 
will  inflict  irreparable  injury  not  only  upon  the  complainant 
but  the  public.  In  such  cases  it  is  only  a  mandatory  injunc- 
tion compelling  the  traffic  to  flow  as  it  is  wont  to  flow  which 
will  protect  the  complainant  from  injury.  The  torm  of  the 
remedy  must  be  adapted  to  the  emergency,  and  where  the  con- 
tinuity of  interstate  traffic  is  threatened  an  injunction  manda- 
tory in  term  is  often  the  only  effective  remedy. 

Still  more  important  was  the  opinion  in  its  clear  analysis 
of  the  position  of  employees  of  railroads  engaged  in  inter- 
state traffic,  and  their  rights  and  duties  as  such  employees  un- 
der the  Interstate  Commerce  Act.  The  relation  of  such  em- 
ployees to  their  railroad  companies  is  one  of  free  contract,  and 
is  not  analogous  to  that  of  seamen  in  the  maritime  service,  who, 
to  a  certain  extent,  surrender  their  liberty  in  their  employment 
and  are  punishable  for  desertion.  The  employment,  therefore, 
in  the  acse  of  railroad  employees,  was  terminable  by  either 
party.  The  court  could  not  compel  the  enforcement  of  per- 
sonal services  as  against  either  the  employer  or  the  employed 
against  the  will  of  either.  The  court  said  especially  was  this 
true  in  the  case  of  railroad  engineers,  where  nothing  but  the 
most  painstaking  and  devoted  attention  on  the  part  of  the  em- 
ployed will  secure  a  proper  discharge  of  his  responsible  duties ; 
and  it  would  even  seem  to  be  against  public  policy  to  expose 
the  lives  of  the  traveling  public  and  the  property  of  the  ship- 
ping public  to  the  danger  which  might  arise  from  the  enforced 
and  unwilling  performance  of  so  delicate  a  service.  While  a 
court  of  equity  could  not  specifically  compel  the  performance 
of  a  contract  for  personal  service,  it  did  not  follow  that  there 
were  no  limitations  upon  the  right  of  employees  to  abandon 
their  employment — that  is,  as  to  the  time  and  place  of  the  ex- 
ercise of  such  right  (see  remarks  of  Supreme  Court  in  Lemon 
case,  166,  U.  S.),  so  as  to  avoid  imperiling  life  or  property. 

Though  the  relation  of  railroad  employer  and  employed  was 
one  of  free  contract,  the  court  also  held  that  while  the  relation 
continues  they  were  bound  to  obey  the  statute  compelling  the 
interchange  of  interstate  traffic,  and  also  bound  by  the  orders 
of  the  court  enjoining  their  employer  corporation  from  refus- 
ing such  interchange.  A  combination  of  the  employees  to  re- 
fuse, while  still  holding  their  positions,  to  perform  any  of  the 
duties  enjoined  by  law  or  by  the  court  upon  their  employer, 
would  be  a  conspiracy  against  the  United  States  and  punishable 
as  such. 

The  court  therefore  held  that  the  mandatory  injunction  was 
properly  issued  against  Arthur,  compelling  him  to  rescind  the 
oi-der  to  the  engineers  in  the  employ  of  the  defendant  directing 
them  not  to  handle  coinplainaht's  freight. 

The  engineers  of  the  defendant  companies  had  no  grievances 


LABOR.  147 

against  their  own  employing  companies ;  and  their  refusal  to 
handle  freight  of  complainant  company  was  in  no  sense  a 
strike  for  the  betterment  of  their  own  conditions  of  service, 
and  was  therefore  not  a  strike  but  a  boycott,  and  this  would 
necessarily    paralyze    the    movement   of   interstate  traffic. 

The  effect  of  this  decision  was  far-reaching.  It  was  the  first 
judicial  declaration  of  the  duties  of  railroad  employees  in  in- 
terstate commeree.  It  was  followed  in  other  circuits  and  was 
not  only  a}) proved  by  the  general  public,  but  was  accepted  by 
the  railroad  Brotherhoods  as  a  fair  statement  of  the  law  under 
the  peculiar  conditions  of  the  railroad  service.  The  result 
was  the  abrogation  of  rule  twelve  by  the  Brotherhood  of  the 
engineers,  and  since  that  time,  as  was  signally  shown  in  the 
extensive  railroad  strike  of  the  following  year,  tne  railroad 
Brotherhoods,  not  only  the  engineers,  but  the  conductors,  fire- 
men, and  trainmen,  have  been  conspicuous  for  their  conservatism 
in  the  adjustment  of  differences  with  the  management  of  their 
respective  companies. 


Tlie    Plielaii    Contempt  Case. 

In  the  following  year,  1894,  came  the  great  railroad  strike 
inspired  by  the  American  Kail  way  Union,  growing  out  of  the 
strike  of  the  Pullman  employees  at  Pullman,  111.  The  officials 
of  the  union  demanded  all  the  railroads  to  boycott  the  Pullman 
cars,  and  declared  a  strike  of  the  employees  of  any  railroad 
on  their  refusal  to  declare  such  a  boycott.  The  Cincinnati 
Southern,  an 'interstate  railway,  was  in  the  hands  of  a  receiver, 
who  had  been  theretofore  appointed  by  the  United  States  Court 
of  Ohio,  and  the  receiver  applied  to  the  court  for  protection 
against  one  Phelan,  an  official  of  the  American  Union,  who  was 
engaged  in  inciting  a  strike  among  the  employees  of  the  rail- 
road. There  was  no  complaint  by  the  employees  of  this  road, 
as  there  had  been  none  by  the  employees  in  the  Arthur  case, 
for  the  betterment  of  their  condition  of  service.  The  demand 
was  that  all  traffic  should  be  suspended  and  business  paralyzed 
until  all  the  roads  should  consent  not  to  carry  Pullman  cars. 
In  the  words  of  the  court,  the  purpose  was  to  starve  the  rail- 
road companies  and  the  public  into  compelling  the  Pullman 
company  to  do  something  which  they  had  no  lawful  right  to 
compel  it  to  do. 

It  seems  that  a  restraining  order  had  been  issued  by  the 
court  prohibiting  interference  with  the  management  of  the 
receiver  in  the  operation  of  the  road,  and  Phelan  had  used 
language  defying  his  order.  He  was  thereupon  attached  for 
contempt,  and  after  a  hearing  was  adjudged  guilty  of  con- 
tempt in  an  opinion  by  Judge  Taft  (62  Fed.  Kep.,  803).  The 
opinion  emphasized  the  same  distinction  which  had  bee  pointed 
out  in  the  Arthur  case  in  the  preceding  year.  The  employees 
had  the  right  to  quit  their  employment,  but  they  had  no  right 
to  combine  to  injure  their  employer,  in  order  to  compel  him 
to  '■■ withdraw  from  a  mutually  profitable  relation  with  a  third 
party  for  the  purpose  of  injuring  the  third  party,  when  the 
relation  thus  sought  to  be  broken  had  no  effect  whatever  upon 
the  character  or  reward  of  their  services.  As  the  purpose  of  the 
combination  was  to  tie  up  interstate  railroads,  not  as  an  inci- 
dental result  of  a  lawful  strike  for  the  betterment  of  the 
employees'  own  conditions,  but  as  a  means  of  injuring  a  third 
party,  it  was  an  unlawful  combination,  violative  of  the  anti- 
trust act  of  1890.  It  was  also  a  direct  interference  with  inter- 
state commerce. 

Thus,  if  Phelan  had  come  to  Cincinnati  and  had  urged  a 
strike  for  higher  wages,  or  to  prevent  lowering  of  wages,  he 
would  not  have  been  liable  for  contempt,  but  he  had  no  right 
to  incite  the  men  to  quit,  when  they  had  no,  grievances  of 
their  own  to  redress,  as  it  was  then  essentially  a  boycott  and 
not  a   strike. 

It  was  in  this  Phelan  case  that  Judge  Taft,  in  determining 
the  limits  of  the  rights  of  labor  organizations,  made  this  lucid 


148  LABOR. 

and  notable  statement  of  the  extent  of  their  rights,  whieh   has 
been  frequently  quoted : 

The  employees  of  the  receiver  had  the  right  to  organize  into  or 
join  a  labor  union  which  would  take  action  as  to  the  terms  of  their 
employment.  It  is  a  benefit  to  them  and  to  the  public  that  laborers 
should  unite  for  their  common  interest  and  for  lawful  purposes.  They 
have  labor  to  sell.  If  they  stand  together  they  are  often  able,  all  of 
them,  to  obtain  better  prices  for  their  labor  than  dealing  singly  with 
rich  employers,  because  the  necessities  of  the  single  employee  may  compel 
him  to  accept  any  price  that  is  offered.  The  accumulation  'of  a  fund 
for  those  who  feel  that  the  wages  offered  are  below  the  legitimate  market 
value  of  such  labor  is  desirable.  They  have  the  right  to  appoint  officers, 
who  shall  advise  them  as  to  the  course  to  be  taken  in  relations  with 
their  employers.  They  may  unite  with  other  unions.  The  officers  they 
appoint,  or  any  other  person  they  choose  to  listen  to,  may  adyise  them 
as  to  the  proper  course  to  be  taken  both  in  regard  to  their  common  em- 
ployment ;  or  if  they  choose  to  appoint  any  one,  he  may  order  them  on 
pain  of  expulsion  from  the  union  peaceably  to  leave  the  employ  of  their 
employer  because  any  of  the  terms  of  the  employment  are  unsatisfactory. 

This  declaration  of  the  right  of  organization  and  repre- 
sentation of  labor  unions  has  often  been  cited  and  quoted  in 
support  of  the  unions,  and  was  applied,  as  will  be  seen,  most 
effectively  in  their  behalf  in  the  Wabash  strike  of   1903. 

The  jurisdiction  of  the  United  States  courts  in  the  pro- 
tection of  interstate  commerce,  and  the  supremacy  of  the  Fed- 
eral power  in  such  questions,  were  therefore  fully  sustained 
by  the  Supreme  Court  of  the  United  States  (see  in  re  Debs 
case,  158  U.  S.,  564;  also  in  re  Lemon,  166  U.  S.,  548). 

The  reason  of  the  prompt  acceptance  of  this  application 
of  the  law  by  Judge  Taft  was  the  universal  recognition  that 
a  boycott  by  railroad  employees  in  interstate  commerce,  as 
distinguished  from  a  strike,  was  impracticaole  .and  inadmis- 
sible, in  view  of  the  paramount  public  interest  concerned.  It 
is  true  that  in  ordinary  trade  disputes  the  public  convenience 
and  even  public  necessities  are  not  always  given  the  weight 
they  should  have.  But  wherever  interstate  or  foreign  commerce 
are  involved  the  public  interest  is  made  paramount  by  the  laws 
of  the  United  States.  All  classes  of  the  community,  working- 
men  as  well  as  capitalists,  are  interested  in  the  proper  trans- 
mission of  the  mails  and  in  the  uninterrupted  passage  of  person 
and  freight.  This  principle  of  the  protection  of  commerce 
against  interruption  has  become  firmly  intrenched  in  our  juris- 
prudence. Under  the  law  declared  in  these  cases,  our  com- 
merce is  subject  to  be  interrupted  only  by  the  incidental  injury 
resulting  from  cessation  of  service,  and  not  by  boycotts  or 
sympathetic  strikes  not  related  to  the  bettering  of  the  con- 
ditions of  the  employees'  service.  That  this  principle  is  firmly 
established  is  primarily  owing  to  the  clear  and  courageous  enun- 
ciation of  the  law  by  Judge  Taft. 


The   Addyston    Pipe   &   Steel    Company    Case. 

The  same  principle  of  the  freedom  of  interstate  commerce 
from  illegal  restraint  declared  in  the  Arthur  and  Phelan  cases 
was  also  held  by  Judge  Taft  to  apply  to  a  business  com- 
bination, or  a  "trust,"  in  the  Addyston  Pipe  &  Steel  Company 
case  (85  Fed  Rep.,  271).  In  this  case  there  was  an  allotment 
of  territory,  comprising  a  large  part  of  the  United  States, 
among  a  number  of  companies  engaged  in  the  manufacture  of 
iron  pipes,  and  in  that  territory  competition  was  eliminated 
through  this  allotment  of  territory,  and  through  a  system  of 
pretended  bidding,  giving  an  appearnace  of  competition,  at  pub- 
lic lettings,  when  in  fact  there  was  no  competition.  The  de- 
cision of  the  Court '  of  Appeals,  rendered  by  Judge  Taft,  was 
afterward  affirmed  by  the  Supreme  Court  of  the  United  States. 
His  opinion  is  a  notable  contribution  to  the  law,  in  its  masterly 
analysis  of  the  essential  distinction  between  the  legitimate  con- 
tracts in  restraint  of  trade,  which  are  merely  ancillary,  or 
incidental,  to  some  lawful  contract,  and  necessary  to  protect 
the  enjoyment  of  the  legitimate  fruits  of  that  contract,  and  the 
agreements  where  the  sole  object  is  a  direct  restraint  of  com- 
petition, and  to  enhance  and  maintain  prices.  These  latter 
agreements  are  unenforceable  at  common  law,  and  are  violative 


LABOR.  149 

of   the   anti-trust   act   when   made   with   reference   to   interstate 
comiiHM-er. 

The  distinction  here  so  clearly  pointed  out  has  been  the  basis 
of  the  construction  of  the  anti-trust  act  by  the  United  States 
Supreme  Court  in  all  its  subsequent  decisions. 

Judge    Taffs    Opinion    Supports    the    Union    in    Wabash    Strike 

Case. 

The  words  of  Judge  Taft  in  the  Phelan  case  quoted  above, 
setting-  forth  the  rights  of  labor  organizations  under  the  law, 
were  directly  invoked  and  applied  on  behalf  of  the  labor  unions 
in  a  notable  case,  that  of  the  threatened  strike  on  the  Wabash 
Railroad  by  the  Brotherhoods  of  Railroad  Trainmen  and  Fire- 
men in  1903  (121  Fed.  Rep.,  563).  In  this  case,  the  represent- 
atives of  these  two  brotherhoods,  after  failing  to  secure  the 
advance  of  wages  and  betterment  of  conditions  demanded  by 
the  Brotherhoods,  had  been  forced  to  call  a  strike  as  their  last 
resort,  and  thereupon  an  injunction  was  filed  by  the  railroad 
company,  in  the  United  States  Circuit  Court  in  St.  Louis,  against 
the  officers  of  these  Brotherhoods,  enjoining  them  from  calling 
a  strike  on  the  Wabash,  as  an  interstate  railroad,  on  the  ground, 
among  others,  that  the  officials  of  the  Brotherhoods  were  not 
employees  of  the  railroad,  and  that  their  action  in  combining 
in  calling  a  strike  would  be  a  direct  interference  with  inter- 
state commerce,  and  was  therefore  an  unlawful  conspiracy. 

The  rights  of  organization  and  the  rights  of  representation, 
as  set  forth  by  Judge  Taft,  were  thus  directly  involved.  The 
writer  represented  those  Brotherhoods  in  the  hearing  on  the 
motion  to  dissolve  the  injunction  granted  in  this  case,  and  used 
the  above  quoted  statement  of  Judge  Taft  as  the  most  lucid 
and  effective  defense  of  the  action  of  the  Brotherhood  and  their 
officials.  The  Court  (Judge  Adams)  found  from  the  evidence 
that  there  was  an  existing  dispute  about  the  conditions  of  ser- 
vice on  the  railroad,  and  that  the  officials  of  the  Brotherhood 
had  been  directed  by  the  members  of  the  Brotherhoods  to  call 
a  strike ;  that  they  had  a  right  to  be  represented  in  such  mat- 
ters by  their  own  officials,  and  that  the  two  unions  had  a  right 
to  act  in  unison  in  their  effort  to  secure  the  betterment  of  the 
conditions  of  their  members,  that  an  agreement  to  strike  under 
those  circumstances  was  not  an  unlawful  conspiracy,  and  the 
injunction  was  therefore  dissolved.  It  was  said  in  the  opinion 
that  on  the  subject  of  organization  of  labor,  and  the  right 
of  labor  unions,  no  one  had  spoken  more  clearly  and  acceptably 
than  Judge  Taft,  in  this  language  above  quoted.  (After  the  dis- 
solution of  the  injunction,  the  differences  between  the  railroad 
and  its  employees  was  amicably  adjusted,  and  the  threatened 
strike  was  averted.) 

Thus,  while  the  law  was  declared  by  Judge  Taft  as  to  the 
limitations  upon  the  lawful  actions  of  labor  unions,  the  essen- 
tial principles  involved  in  the  right  of  organization  were  also 
announced  by  him  in  the  same  opinion.  This  right  of  organi- 
zation of  workingmen  in  the  unions  would  be  futile  without  the 
right  of  representation  by  their  own  .officials  in  the  effort  to 
secure  the  betterment  of  their  conditions.  The  remedies 
adopted  by  workingmen  are  only  weapons  for  the  enforcement 
of  the  fundamental  right  of  collective  bargaining  for  the  com- 
mon benefit.  There  is  no  foundation,  therefore,  for  the  sugges- 
tion that  the  decisions  of  Judge  Taft  were  in  any  sense  un- 
friendly to  labor,  and  it  is  clear  that  through  his  lucid  declara- 
tions of  the  rights  of  labor  the  Railroad  Brotherhood  secured 
the  judicial  vindication  of  their  rights  of  combination  and  of 
representation  in  their  demands  for  the  betterment  of  their  con- 
ditions. 

While  these  important  decisions  were  rendered  by  Judge  Taft, 
declaring  the  freedom  of  interstate  commerce  from  illegal  com- 
binations both  of  labor  and  capital,  the  limitations  upon  the 
rights  of  organized  labor,  as  well  as  the  essential  principles  in- 
volved in  the  right  of  organization  for  the  betterment  of  their 


150  LABOR. 

conditions,  it  would  be  an  imputation  upon  the  brilliant  judi- 
cial record  of  Judge  Taft  to  suggest  that  in  any  of  these  opin- 
ions he  declared  the  law  as  a  friend  of  any  class,  or  that  he 
made  any  judicial  utterance  in  any  of  the  cases  otherwise  than  a 
living  oracle  of  the  law,  bound  to  declare,  in  every  case  brought 
before  him,  not  his  own  private  judgment,  but  the  judgment  of 
the  law. 


HIS  ATTITUDE   AS   PRESIDENT   OF   THE   UNITED   STATES. 

Since  entering  upon  the  duties  of  the  Presidency  Mr.  Taft  has 
at  all  times  shown  a  sincere  interest  in  all  matters  concerning 
the  interests  of  wage  workers. 

He  supported  the  effort  to  secure  the  creation  of  a  Children's 
Bureau  in  the  Department  of  Commerce  and  Labor — an  effort 
that  had  the  support  of  the  labor  movement  of  the  country. 

He  has  taken  a  keen  interest  in,  and  has  given  active  support 
to,  the  movement  to  provide  in  this  country  a  fair  and  liberal 
system  of  compensation  for  wage  earners  injured  in  the  course 
of  their  employment  in  place  of  our  present  outgrown  and  wholly 
unsatisfactory  liability  laws. 

He  appreciates  thoroughly  the  vital  effect  on  the  relation  of 
wage  earner  to  employer  brought  about  by  the  vast  and  far- 
reaching  changes  in  our  industrial  system  during  the  past 
twenty-five  years,  and  has  recommended  to  Congress  the  creation 
of  a  commission,  in  which  labor  would  be  suitably  represented, 
to  thoroughly  investigate  the  present  relations  between  wage 
earners  and  employers  and  to  recommend,  if  possible,  methods 
of  bettering  those  relations  and  of  improving  the  conditions  of 
wage  earners. 

He  urged  upon  Congress  the  legislation  recently  enacted  to 
prevent  the  use  in  match  manufacture  of  poisonous  phosphorus, 
thus  removing  a  serious  menace  to  the  health  and  even  the  life 
of  employees  in  this  industry  who  were  exposed  to  the  fumes 
of  this  substance.  He  has  g^yen  hearty  support  to  all  the  work 
of  the  Bureau  of  Labor  for  the  improvement  of  the  conditions 
of  work  for  wage  earning  men,  women  and  children ;  and  the 
activities  of  that  Bureau  during  this  Administration  have  been 
more  than  ever  directed  along  lines  calculated  to  be  of  imme- 
diate practical  benefit  to  wage  earners. 

Its  investigations  into  conditions  of  labor  in  the  steel  industry 
have  been  largely  instrumental  already  in  bringing  about  in  that 
industry  a  movement  for  the  elimination  of  the  seven-day  work- 
ing week  and  for  the  shortening  of  the  working  day.  It  has 
established  a  division  devoted  entirely  to  the  study  of  the  con- 
ditions of  labor  of  women  wage  earners,  and  the  investigations 
and  reports  of  that  division  have  already  assisted  in  securing 
State  legislation  regulating  the  conditions  for  women  workers. 

A  series  of  studies  has  been  undertaken  into  industrial  poi- 
sons, and  another  into  the  subject  of  the  causes  of  industrial 
accidents  and  the  remedies  therefor.  In  both  these  lines  the 
investigations  already  undertaken  have  borne  fruit  in  leading 
to  important  changes  being  made  voluntarily  for  the  protection 
of  workers  against  poisons  and  against  accidents ;  and  the  re- 
sults of  these  and  future  investigations  on  the  same  lines  will 
furnish  a  basis  for  much  needed  legislation  for  the  proteetion 
of  employees  against  the  danger  of  disease  and  of  accidents 
in  the  course  of  their  daily  toil. 

All  these  lines  of  work  have  had  the  cordial  support  of  Presi- 
dent Taft. 


Anything;  that  makes  capital  Idle,  or  which  reduces  or  destroys 
it,  must  reduce  both  wiircs  mid  the  opportunity  to  earn  wurcs. 
it  only  requires  the  elVects  of  a  panic  through  which  we  are 
passing,  or  through  which  we  passed  in  1  SI»:S  to  1873,  to  show  how 
closely  united  in  a  coniinon  interest  we  all  are  in  modern  society. 
We  are  in  the  same  boat,  and  tinaucial  and  business  storms  which 
ntreet  one  nre  certain  to  affect  all  others. — Hon.  Wm.  H.  Taft,  at 
Cooper   Union,  New    York   City. 


LABOR.  151 

"MORE   THAN  3,000,000  WITHOUT  EMPLOYMENT.'* 
"Tlie   Terrible   experiences    of   Democratic   Free   Trade." 

[Extract  from  remarks  of  Hon.   Charles  Dick  of  Ohio,   in  daily  Congressional 
Record,  June  9,  1900.] 

Mr.  Speaker,  the  voters  of  the  United  States  are  about  to  be  called 
upon  to  determine  which  party  shall  control  the  affairs  of  the  Govern- 
ment during  the  next  four  years.  It  seems  scarcely  possible  that  the  ter- 
rible experiences  of  free  trade  could  be  so  soon  forgotten,  but  as  this  seems 
to  be  the  only  assumption  upon  which  their  votes  can  again  be  asked  for 
those  dangerous  propositions  I  propose  to  put  on  record  a  few  extracts 
from  that  generally  accepted  and  always  accurate  authority,  the  American 
Cyclopedia,  on  conditions  which  existed  during  the  Democratic  period,  1893- 
1896,  in  which  the  actual  experiment  of  free  trade  was  made. 

[From   Appleton's  Annual   Cyclopedia,   1893,   1894  and   1895.] 

July  18,  1893  :  Denver,  Colo.,  four  banks  close  their  doors  and  there 
are    runs    on    other    financial    institutions. 

July   19  :      More    banks    close    their   doors. 

July  22t:  Two  more  bank  failures  in  Milwaukee  and  runs  in  many 
other  places. 

July  24 :      More   bank   failures    in   the  West. 

July  26  :   New   York ;   two  stock  exchange   firms   fail. 

July  27  :  Ten  banks  suspend,  most  of  them  Northwestern.  Other 
business    failures    reported. 

July  28  :  More  failures  and  suspensions,  including  nine  banks  in  the 
West   and   one   in   Kentucky. 

August  1  :  Collapse  of  the  Chicago  provision  deal.  Many  failures  of 
commission  houses.     Great  excitement   in   the   Board  of  Trade. 

August  8  :  The  Chemical  Bank,  one  of  the  strongest  in  the  country, 
is  unable  to  fill  its  weekly  order  for  small  currency. 

August  — :      Madison    Square   Bank    suspends. 

August  17  :  Much  excitement  on  east  side  New  York  among  Hebrew 
laborers,     Police   called    out. 

August  &2  :  Encounter  between  anarchists  anti  socialists  averted  by 
police  in   NeW  York. 

August  23  :      Meeting  of  anarchists  broken  up  by  police. 

August    30 :     Kansas    coal   miners'    strike   ended   with   nothing    gained. 

January  15,  1894:  Secretary  of  the  Treasury  Carlisle  announces  his 
intention   to   issue   bonds. 

January  17 :  The  Secretary  of  the  Treasury  offers  a  $50,000,000 
loan  for  public  subscription,  according  to  his  announced  intentions. 

January  24  :      Strike  in  Ohio  of  10,000  miners. 

January  27  :  A  mob  of  foreign  miners  destroy  property  at  Brantville, 
Pa.,  and  elsewhere. 

February  16 :      Many    New    York    silk    factories    close    on    account    of 

February  18  :  In  Ohio  all  the  mines  in  the  Masillon  district  closed  by 
strike. 

February  20  :  In  Boston  a  riotous  assemblage  of  unemployed  workmen 
dispersed  by  police. 

March  2  :  Six  thousand  miners  In  Jackson  County,  Ohio,  out  of  em- 
ployment. 

Paterson,    N.    J.  :     General    strike    among  the   silk   weavers. 

March  3  :  In  West  Virginia  striking  miners  burn  the  railroad  bridge 
and   commit   other   lawless   acts. 

March  13  :  At  Paterson,  N.  J.,  riotous  proceeding  on  the  part  of  the 
striking   silk  weavers. 

March  17  :  In  Colorado  Governor  Waite  orders  State  troops  to  Cripple 
Creek  to  suppress  mining  troubles. 

March  20 :  In  Boston  a  large  body  of  unemployed  workmen  march 
to  the  State  House  and  demand  employment. 

March  24  :  A  movement  inaugurated  in  various  parts  of  the  Northern 
States,  known  as  the  Army  of  the  Commonwealth,  Coxeyites,  etc.,  pro- 
posed marching  to  Washington  and  demanding  help  at  the  hands  of  Con- 
gress. 

March  31 :  Coxeyites  are  a  source  of  terror  to  certain  Western  towns 
upon  which  they  quarter  themselves. 

April  2  :      In  Chicago  5,000  plumbers,  painters,  etc.,  go  on  strike. 

April  3  :  In  South  Carolina  the  Governor  declares  martial  law  in  all 
the   cities   of   the    State. 

April  4 :     In  Pennsylvania  6  men  killed  and  1  wounded  in  coke  riots. 

April  13 :  The  general  council  of  United  Mine  Workers  orders  a 
strike  affecting  8.000  men. 

April  16 :  Strike  on  the  Great  Northern  spreads  to  the  Northern 
Pacific. 

April  20  :  In  Omaha  a  mob  seizes  a  train  of  box  cars  and  attempts  to 
deport  Kelly's   industrial  army,   but  the   army   refuses   to   go. 

April  21 :  About  15,000  miners  stop  work  in  sympathy  with  the  coke 
strikers    in    Pennsylvania. 

April   28  :      Arrival    of    a   division   of   the    Coxey    army    at   Washington. 

A  division  of  the  Coxeyites  arrested  at  Mount  Sterling  for  holding  up 
a  railway  train. 

United  States  troops  ordered  to  assist  the  civil  authorities  in  the  far 
West. 

On  the  Great  Northern  Railroad  system  the  Knights  of  Labor  are 
called    out   on    strike. 

April   29  :   Kelly's    army,    1,200   strong,    at   Des   Moines. 

April   30  :      Strike   of   2,000   painters    in    Chicago.    - 

May  1  :  Attempted  demonstration  of  Coxey's  army  on  the  steps  of 
the    Capitol. 


England    learns    from     experience'— Democracy    does    not. — Hon. 
Charles  Dick,  in  Congress,  January  5,  1J)04. 


ACHIEVEMENTS  OF  PRESIDENT  TAFT'S 
ADMINISTRATION. 


President  Taft's  administration  has  to  its  credit  a  list  of 
accomplishments  which,  when  summed  up,  will  go  far  toward 
answering  the  question  that  will  remain  uppermost  in  the 
minds  of  the  people  between  now  and  next  November,  as  to 
whether  he  shall  be  re-elected.  Many  of  the  more  important 
facts  are  discussed  in  separate  chapters  of  this  book,  espe- 
cially the  work  in  control  of  corporations;  the  enactment  of 
a  wise  tariff  law,  under  which  came  an  enormous  increase  in 
importation  of  merchandise  free  of  duty,  a  distinct  lowering 
of  the  rates  of  duty,  an  increase  in  revenues  which  turned 
a  treasury  deficit  Into  a  surplus,  an  increased  activity  in 
the  manufacturing  industries  and  the  exportation  of  manu- 
factures. This  act  also  made  it  possible  for  the  President  to 
create  a  non-partisan  Tariff  Board  to  obtain  accurate  informa- 
tion upon  which  future  tariff  rates  at  issue  should  be  based. 
Following  this  came  vetoes  by  President  Taft  of  several  tariff 
measures  in  which  the  Democratic  Congress  had  refused  to 
await  information  from  the  Tariff  Board  or  to  recognize  the 
information  which  if  had  carefully,  laboriously  and  with  great 
care,  as  to  accuracy,  collected  and  placed  at  the  disposal  of 
Congress.  The  details  by  which  the  promises  of  the  platform 
upon  which  President  Taft  was  elected  in  1908  have  been 
carried  into  effect  are  set  forth  in  separate  chapters  of  this 
work,  but  the  great  mass  of  accomplishments,  legislative  and 
otherwise,  with  which  his  administration  must  be  credited, 
can  only  be  presented,  in  a  work  of  this  size,  in  condensed 
form.  The  record  will  show,  however,  that  the  important 
policies  enunciated  by  his  predecessors  have  been  crystallized 
into  law  or  put  into  operation  without  resultant  disturbance  to 
business  and  with  no  attempt  at  publicity  intended  to  popular- 
ize the  administration  or  the  policies  themselves,  but  to  leave 
the  work  thus  performed  to  tell  its  own  story  to  the  people 
of  the  United  States. 

CONTROL    OF    CORPORATIONS. 

In  the  control  of  corporations,  President  Taft  found  one  of 
the  most  difficult  and  highly  responsible  duties  of  his  im- 
portant position.  The  Republican  platform  of  1908  pledged 
the  administration  to  a  continuance  of  the  work  of  regulat- 
ing the  trusts  and  monopolies,  which  had  grown  up  in  this 
country,  as  they  had  in  other  countries,  irrespective  of  tariff 
conditions  there  prevailing,  and  upon  which  work  he  entered 
with  a  mind  well  equipped  by  reason  of  his  legal  training  and 
judicial  experience.  When  the  Supreme  Court  had  cleared  up 
the  doubtful  phases  of  the  Sherman  Anti-Trust  Law  and  de- 
clared that  "combinations  formed  for  the  purpose  of  con- 
trolling prices  by  destroying  the  opportunities  of  buyers  and 
sellers  to  deal  with  each  other  upon  the  basis  of  fair,  open 
and  free  competition  are  against  common  right  and  constitute 
crimes  against  the  public,"  the  work  already  begun  of  a  vigor- 
ous enforcement  through  the  Department  of  Justice  of  existing 
law  was  stimulated,  and  the  results  of  the  first  three  years  of 
President  Taft's  administration  far  surpass  those  of  any  of 
his  predecessors.  The  details  of  this  work  are  set  forth  in 
the  chapter  of  this  book  entitled  "Control  of  Corporations 
Under  President  Taft,"  and  need  not  be  recounted  here. 

TARIFF  REVISION. 

The  promise  of  the  platform  for  a  downward  revision  of 
the  tariff  has  been  distinctly  carried  out,  so  far  as  existing 
conditions   rendered   possible.      In   certain   schedules   of   tariff 

152 


ACHIEVEMENTS   OF   PRESIDENT   TAFT'S   ADMINISTRATION.        153 

measures,  notably  ttiose  with  reference  to  wool  and  cotton, 
the  detailed  information  necessary  for  a  proper  adjustment 
of  existing  law  was  not  available  when  the  Payne  Tariff  Law 
was  enacted,  and  that  measure  established  a  Tariff  Board, 
with  the  definite  purpose  of  obtaining  information  regarding 
cost  of  production,  at  home  and  abroad,  of  the  various  articles 
subject  to  a  duty.  Under  President  Taft's  direction  one  of 
the  first  duties  of  this  board  was  the  collection  of  informa- 
tion regarding  the  two  schedules  above  mentioned  in  which  the 
Payne  Tariff  Law  had  failed,  by  reason  of  lack  of  information, 
to  make  the  reductions  believed  essential  under  the  conditions 
which  had  arisen  since  the  earlier  legislation  upon  this  sub- 
ject. These  reports  of  the  Tariff  Board  upon  these  two  sched- 
ules (wool  and  cotton)  were  disregarded  by  the  Democratic 
Ways  and  Means  Committee  and  the  other  Democratic  mem- 
bers of  Congress,  and  as  the  result  the  various  tariff  measures, 
both  those  hastily  framed  and  passed  in  the  extra  session  of 
Congress  and  those  in  the  regular  session  which  disregarded 
the  information  supplied  by  the  unanimous  finding  of  the  non- 
partisan board,  were  vetoed  by  President  Taft.  The  Payne  Law, 
however,  did  make  a  downward  revision  in  from  six  hundred 
to  seven  hundred  items  and  in  but  about  two  hundred  was 
there  an  advance.  The  consumption  in  the  United  States  of 
the  value  of  articles  upon  which  reductions  were  made  amounts 
to  $5,000,000,000  per  annum,  while  increases  were  made  on 
articles  of  which  the  consumption  is  less  than  $1,000,000,000. 
Under  this  law  the  importation  of  merchandise  free  of  duty 
in  the  fiscal  year  just  ended  amounted  to  $900,000,000,  and  if 
to  this  be  added  the  free  merchandise  coming  fr»m  Hawaii, 
Porto  Rico  and  the  Philippines,  also  the  result  of  Republican 
legislation,  the  total  value  of  non-dutiable  merchandise  enter- 
ing continental  United  States  in  the  fiscal  year  of  1912  exceeds 
$1,000,000,000.  Of  the  total  merchandise  entering  continental 
United  States  during  the  year,  $1,000,000,000  worth  passed 
from  the  custom  houses  to  the  factories,  while  another  $1,- 
000,000,000  of  manufactures  passed  from  the  factories  to 
the  customs  houses  and  thence  to  foreign  countries. 

The  Payne  Law  has  now,  at  the  end  of  the  fiscal  year  1912, 
been  in  operation  thirty-five  months,  just  as  many  months  as 
the  Wilson  low  tariff  law  operated,  and  its  operation  can,  there- 
fore, be  compared  with  the  only  low  tariff  law  which  the 
country  has  had  since  the  entrance  of  the  Republican  Party 
into  power  in  the  United  States  in  1861.  The  merchandise 
imported  free  of  duty  in  the  thirty-five  months  of  the  Payne 
Tariff  Law  averaged  $68,000,000  per  month  against  an  aver- 
age of  $31,000,000  per  month  in  the  thirty-five  months  of 
the  Wilson  Law.  The  share  of  the  imports  entering  free  of  duty 
under  the  entire  operation  of  the  Payne  Law  to  date  is  51.2 
per  cent,  against  48.8  per  cent,  during  the  entire  operation 
of  the  Wilson  Law.  The  average  ad  valorem  rate  of  duty  on 
dutiable  merchandise  entering  under  the  Payne  Law  is  41.2 
per  cent.,  and  under  the  Wilson  Law  42.8  per  cent.  The  aver- 
age ad  valorem  rate  on  all  imports  under  the  Payne  Law  is 
20.1  per  cent.,  and  under  the  Wilson  Law  21.9  per  cent. 
Despite  the  much  larger  free  list  and  lower  rates  of  duty 
under  the  Payne  Law  than  under  the  Wilson  Law,  the  customs 
receipts  under  the  Payne  Law  averaged  $26,500,000  per  month 
against  $14,000,000  per  month  under  the  Wilson  Law,  these 
figures  being  in  each  case  for  the  thirty-five  months'  operation 
of  the  Payne  Law,  compared  with  the  thirty-five  months  in 
which  the  Wilson  Law  operated  during  its  entire  existence. 
Details  of  the  operation  of  the  existing  tariff  law  and  of  the 
legislation  and  attempts  at  legislation  and  of  the  President's 
vetoes  of  unsatisfactory  tariff  bills,  are  set  forth  in  the  sepa- 
rate chapter  upon  that  subject. 

WELFARE    OF   THE   PEOPLE. 

The  interest  of  the  President  in  the  problems  affecting  the 
welfare  and  personal  prosperity  of  the  masses  of  people  in 
the  country  are  especially  illustrated  by  the  activities  of  this 
administration.      The   frequent   complaints   regarding   the   ad- 


154       ACHIEVEMENTS   OF   PRESIDENT   TAFT'S   ADMINISTRATION.. 

vance  in  the  cost  of  living,  which  had  'been  a  marked  char- 
acteristic of  a  considerable  period  prior  to  Mr.  Taft's  entrance 
upon  the  presidency,  were  the  subject  of  immediate  and  care- 
ful attention  on  his  part.  Studies  were  made  of  conditions 
at  home,  with  the  purpose  of  determining  whether  the  ad- 
vance was  due  to  'arbitrary  control  by  great  corporations. 
Examinations  were  made  into  the  advance  in  values  of  the 
lands  upon  which  some  of  the  articles  in  question  were  pro- 
duced, the  cost  of  production  growing  out  of  advances  in 
wages,  and  especial  attention  given  to  study  of  similar  con- 
ditions in  foreign  countries,  with  the  purpose  of  determining 
whether  the  advances  in  the  United  States  were  due  to  local 
conditions  and  thus  possible  of  remedy  through  legislation  or 
more  strict  enforcement  of  existing  law.  The  results  of 
these  inquiries,  which  show,  in  substance,  that  advances  simi- 
lar to  these  inquiries  have  occurred  in  all  countries,  and  are, 
therefore,  not  chargeable  to  local  conditions,  while  in  other 
cases  the  advances  at  home  are  due  to  increased  land  values, 
wages  and  the  transfer  of  labor  from  the  farm  to  the  manu- 
facturing centers,  are  set  forth  in  the  chapter  entitled  "Ad- 
vance in  the  Cost  of  Living,"  and  also  in  the  chapters  relating 
to  wages  and  prices.  Especial  attention  is  called  to  the  studies 
of  conditions  in  foreign  countries,  which  show  that  the  ad- 
vances in  various  parts  of  the  world,  under  free  trade  in  Great 
Britain  or  the  protective  systems  of  other  countries,  have  been 
pratically  identical.  These  studies,  which  were  set  in  opera- 
tion by  President  Taft  through  the  State  Department  in  the 
early  part  of  his  administration,  have  proven  of  great  value, 
not  only  to  the  people  of  the  United  States,  but  those  of  the 
world  in  general  in  quickening  the  desire  for  an  accurate 
understanding  of  the  real  causes  in  question;  and  this  has 
been  further  stimulated  by  a  recommendation  to  Congress 
on  the  part  of  President  Taft  for  the  establishment,  through 
an  invitation  by  this  Government,  of  an  international  body 
for  the  study  of  this  subject. 

Another  feature  of  the  President's  active  interest  in  the 
welfare  of  the  people  is  found  in  his  recommendation  to  Con- 
gress for  the  enactment  of  an  Employers'  Liability  and  Work- 
men's Compensation  Law,  a  result  of  a  commission  appointed 
by  him  to  consider  this  subject,  in  the  transmission  of  which 
to  Congress,  President  Taft,  after  expressing  the  hope  that 
the  measure  recommended  by  that  commission  would  pass, 
said:  "I  deem  it  one  of  the  great  steps  of  progress  toward  a 
satisfactory  solution  of  the  controversies  between  employer 
and  employe  that  has  been  proposed  within  the  last  two  or 
three  decades.  The  old  rules  of  liability  under  the  common 
law  were  adapted  to  a  different  age  and  conditions,  and  were 
evidently  drawn  by  men  imbued  with  the  importance  of  pro- 
tecting the  employers  from  burdensome  or  unjust  liabilities. 
It  was  treated  as  a  personal  matter  of  each  employer,  and  the 
employer  and  employe  were  put  on  a  level  in  dealing,  which, 
howeVer  it  may  have  been  in  the  past,  certainly  creates  in- 
justice to  the  employe  under  the  present  conditions."  Other 
features  of  his  administration  in  behalf  of  the  people  have 
been  the  establishment  of  the  Bureau  of  the  Mines,  in  the 
framing  and  passage  of  which  the  President  took  a  very  per- 
sonal and  earnest  interest;  the  abolition  of  the  peonage  system 
in  several  of  the  Southern  States,  accomplished  through  the 
Department  of  Justice;  the  work  of  the  Department  of  Com- 
merce and  Labor,  in  preventing  the  admission  of  objectionable 
immigrants,  obtaining  employment  for  large  numbers  of  the 
immigrants  entering  the  country,  investigation  into  the  labor 
conditions  of  the  iron  and  steel  industry,  steps  taken  to 
abolish  the  practice  of  working  seven  days  in  the  week  in 
numerous  branches  of  industry  and  of  shortening  the  working 
day,  the  installation  of  safety  devices  and  means  of  accident 
prevention  in  the  industries  and  on  the  railways,  the  inquiry 
into  the  poisoning  of  operatives  in  match  factories  and  the 
study  of  industrial  poisons  in  general,  the  studies  of  systems 
of  workmen's  compensation  in  all  the  leading  industrial 
countries  of  the  world,  the  study  of  the  various  systems  of 
conciliation    and    arbitration    in    use    in    this    country    and    in 


ACHIEVEMENTS   OP   PRESIDENT  TAFT'S   ADMINISTRATION.       155 

Europe,  the  mediation  in  industrial  disputes  under  the  Erdman 
Act,  the  study  of  child  labor  in  the  industries  of  the  country, 
the  investigation  into  the  hours  of  labor  of  women  in  cer- 
tain occupations,  and  the  enactment  of  a  law  requiring 
every  ocean-going  passenger  steamer  to  be  equipped  with  a 
wireless  telegraph  outfit  in  charge  of  a  competent  operator. 
The  work  of  President  Taft's  administration  in  behalf  of  the 
people,  through  the  Post  Office  Department  and  legislation 
with  reference  thereto,  has  been  especially  important.  The 
postal  savings  bank  system  has  been  established,  thousands 
of  post  offices  have  been  made  postal  savings  banks  and  many 
thousands  of  people  who,  in  the  past,  were  unwilling  to  trust 
their  little  savings  to  the  banks,  are  now  entrusting  them  to 
the  Government,  which  becomes  responsible  for  them,  and 
thus  passes  into  the  general  circulating  medium  of  the  coun- 
try millions  of  dollars  which  formerly  lay  idle;  a  Parcels 
Post  System  has  been  recommended  and  will  probably  receive 
favorable  consideration  from  Congress,  fraudulent  concerns 
seeking  to  fleece  the  people  of  the  country  through  the  un- 
lawful use  of  the  mails  have  -been  suppressed,  and  with  all 
this  the  deficit  of  the  Post  Office  Department  turned  into  a 
surplus.  Details  of  these  operations  are  set  forth  in  the 
chapter  entitled  "Work  of  the  Post  Office  Department."  The 
attempt  of  the  railways  of  the  country  arbitrarily  to  put 
rate  increases  into  effect  was  prevented  by  appeal  to  writ  of 
injunction.  A  Stock  and  Bond  Commission,  headed  by  Presi- 
dent Hadley,  of  Yale  University,  has  made  a  most  valuable 
report  for  basing  regulation  of  stock  and  bond  issues,  pre- 
vention of  stock  watering,  etc. 

FOREIGN    RELATIONS. 

The  accomplishments  of  the  administration  in  the  field  of 
foreign  relations  have  been  extremely  important  and  are  set 
forth  in  detail  in  the  chapter  entitled  "Work  of  the  State  De- 
partment." These  include  the  abrogation  of  the  treaty  with 
Russia,  with  the  purpose  of  protecting  the  rights  of  American 
citizens  temporarily  in  that  country;  the  new  treaty  with 
Japan,  by  which  the  troublesome  question  of  immigration  has 
been  settled  in  a  manner  which  adequately  protects  the  wage- 
earners  of  the  United  States  without  proving  offensive  to  the 
people  or  government  of  Japan;  the  pending  treaties  with 
Central  American  States  and  the  general  arbitration  treaties 
negotiated  with  Great  Britain  and  France,  but  rendered  prac- 
tically inoperative  through  Democratic  opposition  in  the 
Senate;  the  vigorous  warnings  to  the  Cuban  Government 
against  the  renewal  of  insurrectionary  movements  and  destruc- 
tion of  property  of  American  citizens  in  that  island,  and  the 
extremely  difficult  and  delicate  task  of  maintaining  peace  along 
the  Mexican  border,  through  the  massing  of  troops  in  that 
vicinity,  and  the  moral  effect  of  their  presence  without  the 
necessity  of  absolute  intervention  in  the  interest  of  American 
citizens  and  their  investments  in  that  country. 

ECONOMIES    IN    ADMINISTRATION. 

Economies  in  the  administration  of  the  Government  have 
been  a  marked  feature  of  President  Taft's  administration. 
The  estimates  of  the  departments  for  their  current  expenses 
have  received  careful  consideration  with  the  purpose  of  econo- 
mizing wherever  possible  and  preventing  unnecessary  in- 
creases, and  actual  reductions  of  many  millions  in  expenditures 
have  been  effected,  as  shown  by  President  Taft's  speech  of 
acceptance.  Another  important  step  in  the  attempt  to  econo- 
mize the  expenses  of  the  Government  has  been  the  creation  by 
President  Taft  of  a  commission  of  experts  to  study  in  detail  the 
operations  of  the  various  branches  of  the  governmental  service, 
so  as  to  greatly  reduce  the  expenses  and  *  at  the  same  time 
co-ordinate  and  simplify  the  important  work  performed.  The 
recommendations  of  this  commission,'  if  enacted  into  law, 
would  result  in  the  saving  of  many  millions  of  the  Government 
funds  and  at  the  same  time  an  improvement  of  the  service. 


156       ACHIEVEMENTS   OF   I'L'KSIDKXT  TAFT'S   ADMINISTRATION. 

Other  accomplishments  of  President  Taft's  administration 
include  the  rapid  work  upon  the  Panama  Canal,  which  it  is 
expected  will  be  completed  during  the  next  year;  the  passage 
of  a  Corporation  Tax  Law  yielding  $30,000,000  annually,  with 
the  resultant  surveillance  of  corporate  activities;  the  question 
of  an  Income  Tax  Amendment  to  the  Constitution  has  been 
submitted  to  the  States;  conservation  and  irrigation  policies 
carried  out  and  enlarged  in  detail;  a  Court  of  Commerce  estab- 
lished to  review  the  findings  of  the  Interstate  Commerce  Com- 
mission; a  Court  of  Customs  Appals  created;  the  Customs 
Service  so  reorganized  to  reduce  rae  losses  under  fraudulent 
importations  and  a  recovery  of  large  sums  in  duties  which 
had  been  evaded;  the  veto  of  the  Arizona  Statehood  Bill,  by 
reason  of  its  provision  for  the  recall  of  judges,  and  a  ringing 
appeal  to  the  people  of  the  country  against  the  dangerous 
doctrine  of  judicial  recall.  Certain  of  the  more  important 
features  of  President  Taft's  administration  down  to  this  time 
are  modestly  referred  to  in  his  speech  of  acceptance  published 
in  this  volume,  and  are  stated  in  greater  detail  in  the  chapters 
on  the  work  of  the  various  departments. 


Defense  against  Injurious  importations  is  as  necessary  and  justi- 
fiable  as   is   an   army  and   navy. — Hon.   B.   F.   Jones. 

Cheap  labor  is  not  the  sole  end  we  seek  in  the  "United  States. 
.  .  .  We  desire  not  only  well-paid  labor,  but  want  that  labor 
steadily  employed.-— Hon.  C.  W.  Fairbanks,  at  Kansas  City,  Mo., 
September   1,    1902. 

There  is,  therefore,  nothing  new  in  these  propositions  as  to 
legislation  by  direct  vote,  and  if  we  look  at  the  scheme  for  the 
recall  of  judges  we  shall  see  that  not  only  has  control  of  tli<* 
courts  by  the  sovereign  authority  been  familiar  at  all  stages  of 
history,  but  that  the  actual  practice  of  judicial  recall  was  at- 
tempted in  France  during  the  revolution  of  1848.  The  provisional 
government  made  the  judges  removable  at  pleasure.  The  result" 
of  those  experiments  in  France  was  the  plebiscite  and  the  Third 
Napoleon.  Representative  government  and  liberty  faded  away 
together  and  the   executive   became  all   powerful. — Senator   Lodge. 

While  I  fully  recognize  the  fact  that  the  Fifteenth  Amendment 
has  not  accomplished  all  that  it  -was  intended  to  accomplish,  and 
that  for  a  time  it  seemed  to  be  a  dead  letter,  I  am  confident  that 
in  the  end  it  will  prove  to  be  a  buwark  equally  beneficial  with 
that  of  the  Thirteenth  and  Fourteenth  Amendments  to  an  un- 
fortunate and  down-trodden,  struggling  race,  to  whom,  in  view 
of  the  circumstances  under  which  they  were  brought  to  this 
country  and  the  conditions  in  bondage  in  which  they  were  con- 
tinued for  more  than  two  centuries,  we  owe  every  obligation  of 
care  and  protection.  That  which  has  been  done  for  the  benefit 
of  the  negro  race  is  the  work  of  the  Republican  party.  It  is  one 
of  those  great  issues  presented  by  the  exigencies  of  the  war  which 
the  party  had  the  firmness  and  courage  to  meet. — Hon.  Wm.  H. 
Taft,   at   Kansas   City,  Mo. 

The  futility  of  the  investigation  of  the  "Steel  Trust"  by  the 
Stanley  Committee,  which  will  have  cost  in  direct  expense,  nearly 
$40,000  and  indirectly  an  unascertainable  amount,  is  practically 
demons*  rated  before  any  report  is  ready.  A  similar  result  is  to 
be  expected  of  several  other  investigations  undertaken  in  the  last 
year  by  the  House  of  Representatives  through  either  regular  or 
special  committees,  for  the  simple  reason  that  their  purpose  has 
not  been  to  ascertain  facts  and  place  them  in  their  proper  rela- 
tion, in  order  to  establish  the  truth  and  serve  as  a  guide  to  sound 
public  action,  but  to  gain  some  party  advantage  by  one-sided  con- 
clusions. Investigation  of  matters  which  may  call  for  changes 
in  legislation  or  in  administration  of  the  law7  must  be  conducted 
in  a  judicial  and  not  a  partisan  way  if  they  are  to  be  of  real  use. — 
New  York  "Journal  of  Commerce,"   Democrat. 

Efficient  regulation  is  the  very  antidote  and  preventive  of 
socialism  and  government  ownership.  The  railroads,  until  now, 
have  been  permitted  to  wield  without  any  real  control  the  enor- 
mously important  franchise  of  furnishing  transportation  to  the 
entire  country.  In  certain  respects  they  have  done  a  marvelous 
work  and  have  afforded  transportation  at  a  cheaper  rate  per  ton, 
per  mile,  and  per  passenger,  than  in  any  country  in  the  world. 
They  have,  however,  many  of  them,  shamefully  violated  the  trust 
obligation  they  have  been  under  to  the  public  of  furnishing  equal 
facilities  at  the  same  price  to  all  shippers.  They  have  been 
weighed  in  the  balance  and  found  wanting.  The  remedy  for  the 
evils  must  be  radical  to  be  effective.  If  it  is  not  so,  then  we  may 
certainly  expect  that  the  movement  toward  government  owner- 
ship will  become  a  formidable  one  that  cannot  be  stayed. — Hon. 
Win.    ll.    Taft,   at    Columbus,    Ohio. 


WILLIAM  HOWARD  TAFT. 


In  William  Howard  Taft  the  Republican  National  Convention 
has  renominated  for  the  presidency  a  man  exceptionally 
equipped,  not  only  by  nature  and  training,  but  by  experience 
and  achievement,  to  perform  the  delicate  and  arduous  duties  of 
the  greatest  office  in  the  gift  of  any  people.  For  over  thirty 
years  he  has  given  himself  with  single-minded  devotion  to  the 
public  service.  He  has  displayed,  throughout  a  broad  grasp  of 
affairs,  a  literally  dauntless  courage,  an  unshakable  integrity, 
a  quick  and  all-embracing  sympathy,  a  deep  and  abiding  sense 
of  justice,  a  marvelous  insight  into  human  nature,  a  sure  and 
unwavering  judgment,  executive  ability  of  the  highest  order 
and  a  limitless  capacity  for  hard  work.  In  all  the  years  of  its 
history  the  Republican  Party  has  never  selected  as  its  leader  in 
a  National  campaign  a  man  so  tried  beforehand,  and  so  amply 
proved  equal  to  the  task. 

A  Family  of  Jurists. 

Mr.  Taft  comes  of  a  family  distinguished  in  the  law  and  the 
public  service.  The  first  American  Tafts  came  of  the  English 
yeomanry,  transplanted  across  the  Atlantic  by  the  great  upheaval 
for  conscience's  sake  which  peopled  New  England  with  its  sturdy 
stock.  In  this  country  they  turned  to  the  study  and  practice 
of  the  law.  Peter  Taft  was  both  a  maker  and  an  interpreter  of 
laws,  having  served  as  a  member  of  the  Vermont  Legislature, 
and  afterwards  as  a  judge.  Alphonso  Taft,  son  of  Peter,  was 
graduated  from  Yale  College,  and  then  went  out  to  the  Western 
Reserve  to  practice  law.  He  settled  in  Cincinnati,  and  it  was  at 
Mt.  Auburn,  a  suburb  of  that  city,  on  September  15,  1857,  that 
his  son,  William  Howard  Taft,  first  became  a  presidential 
possibility. 

The  boy  grew  up  in  an  atmosphere  of  earnest  regard  for 
public  duty  too  little  known  in  these  days  of  the  colossal  and  en- 
grossing material  development  of  the  country.  His  father  earned 
distinction  in  the  service  of  city  and  State  and  Nation,  going 
from  the  Superior  bench  to  which  he  had  been  elected  unani- 
mously, to  the  place  in  Grant's  cabinet  later  held  by  the  son, 
then  as  Attorney-General,  to  the  Department  of  Justice  and 
finally  into  the  diplomatic  service,  as  minister  first  to  Austria 
and  then  to  Russia.  His  mother,  who  was  Miss  Louise  M. 
Torrey,  also  came  of  that  staunch  New  England  stock  with 
whom  conscience  is  the  arbiter  of  action  and  duty  performed 
the  goal  of  service. 

His  Mother's  Influence. 

It  was  her  express  command  that  sent  him  away  from  her 
in  1907,  when  both  knew  that  she  was  entering  upon  the  last 
stage  of  her  life.  .  He  had  promised  the  Filipinos  that  he  would 
go  to  Manila  and  in  person  formally  open  their  Assembly.  It 
was  to  be  their  first  concrete  experience  in  self-government,  and 
he,  more  than  any  other  man,  had  made  it  possible.  If  he  should 
not  keep  his  promise  there  was  danger  that  the  suspicious  Fili- 
pinos would  impute  his  failure  to  sinister  motives,  to  indifference 
or  altered  purpose,  with  result  vastly  unfortunate  to  them  and 
to  us.  Mr.  Taft  saw  all  that  very  clearly,  yet  in  view  of  his 
mother's  health  he  would  have  remained  at  home.  But  she  for- 
bade. She  said  his  duty  lay  to  the  people  he  had  .started  on  the 
path  to  liberty,  and  although  it  involved  what  each  thought  to 
be  the  final  parting  she  commanded  him  to  go.  He  went  and  be- 
fore he  could  return  his  mother  had  passed  away. 

Much  was  to  be  expected  of  a  boy  of  such  parentage,  and 
young  Taft  fulfilled  the  expectation.     He  began  by  growing  big 

157 


158  WILLIAM   HOWARD   TAFT. 

physically.  He  has  a  tremendous  frame.  The  cartoonists  have 
made  a  false  presentment  of  him  familiar  to  the  country  by  draw- 
ing him  always  as  a  mountain  of  flesh.  But  if  they  had  gone  to 
the  same  extreme  of  leanness,  and  still  honestly  portrayed  his 
frame  they  wrould  have  represented  a  man  above  the  average 
weight. 

At  College. 

Of  course  he  went  to  Yale.  His  father  had  been  the  first 
alumnus  elected  to  the  corporation,  and  when  young  Taft  had 
completed  his  preparatory  course  at  the  public  schools  of  Cin- 
cinnati he  went  to  New  Haven  for  his  college  training.  He  was 
a  big,  rollicking,  good  natured  boy,  who  liked  play  but  still  got 
fun  out  of  work.  He  did  enough  in  athletics  to  keep  his  225 
pounds  of  muscle  in  good  condition,  but  gave  most  of  his  time 
to  his  studies.  When  the  class  of  '78  was  graduated  Taft  was 
its  salutatorian,  having  finished  second  among  120.  He  was 
also  elected  class  orator  by  the  class.     He  was  then  not  quite  21. 

He  went  back  to  Cincinnati  and  began  the  study  of  law  in  his 
father's  office,  at  the  same  time  doing  court  reporting  for  the 
newspaper  owned  by  his  half-brother,  Charles  P.  Taft.  His 
salary  at  first  was  $6  a  week.  He  did  his  work  so  well,  however, 
that  Murat  Hal  stead,  editor  of  the  Cincinnati  Commercial 
Gazette,  employed  him  to  work  for  that  paper  at  the  increased 
salary  of  $25  a  week. 

While  he  was  doing  this  he  was  keeping  up  his  studies,  taking 
the  course  at  the  Cincinnati  Law  School,  from  which  he  was 
graduated  in  18S0,  dividing  first  honors  with  another  student, 
and  being  admitted  to  the  bar  soon  afterward. 

His  Respects   to  a  Blackmailer. 

That  fall  there  occurred  one  of  the  most  celebrated  and  char- 
acteristic incidents  in  his  life.  A  man  named  Rose  was  then 
running  a  blackmailing  paper  in  Cincinnati.  He  had  the  reputa- 
tion .  of  being  a  dangerous  man.  He  had  been  a  prize  fighter. 
and  was  usually  accompanied  by  a  gang  of  roughs  ready  to 
assault  any  whom  he  wanted  punished.  Alphonso  Taft  had  been 
the  unsuccessful  candidate  for  governor  at  that  election,  and 
Rose's  paper  slanderously  assailed  him.  For  once  young  Taft  for- 
got his  .judicial  temperament  and  legal  training,  and  instead  of 
setting  the  law  on  the  blackmailer  he  marched  down  to  his  office 
and  gave  Rose  a  terrific  thrashing. 

Rose  quit  Cincinnati  that  night  and  his  paper  never  appeared 
again.  Young  Taft  had  had  his  first  spectacular  fight,  and  it  was 
in  behalf  of  somebody  else. 

It  is  not  the  purpose  of  this  sketch  to  attempt  a  detailed 
biography  of  Mr.  Taft.  It  merely  seeks  by  a  discussion  of  a  few 
of  the  more  important  events  of  his  life  to  show  what  manner  of 
man  he  is.  They  reveal  him  as  a  student  of  application  and 
ability;  a  man  with  an  abiding  sense  of  justice,  slow  to  wrath, 
but  terrible  in  anger;  courageous,  aggressively  honest  and 
straightforward;  readier  to  take  up  another's  cause  than  his 
own.  This  is  a  foundation  on  which  experience  may  build  very 
largely,  and  that  is  what  it  has  done  for  Tail. 

The  Call  to   Public  O/Jicc. 

lie  was  hardly  out  of  his  boyhood  when  he  was  called  to 
public  office,  and  in  most  of  the  years  since  then  he  lias  devoted 
himself  to  the  public  service.  First  he  was  assistant  proseeul  ing 
attorney  of  Hamilton  County.  In  183d  be  became  collector  of 
internal  revenue  for  the  first  Ohio  district.  A  year  later  he  re- 
signed that  ofiice  and  went  back  to  the  practice  of  law.  In  1884 
he  became  the  junior  counsel  of  a  Bar  Committee  to  institute 
proceedings  against  Campbell,  whose  methods  of  practicing 
law  had  brought  on  the  burning  of  the  Hamilton  County  Court 
house  in  Cincinnati.  Though  technically  unsuccessful,  Mr. 
Taft  made  a  good  reputation  from  his  conduct  of  this  matter 
and  Campbell  was  driven  from  Cincinnati.  In  1885  he  became 
assistant  county  solicitor.      Two  years  later  Governor  Foraker 


WILLIAM   HOWARD   TAFT.  i  159 

appointed  him  Judge  of  the  Superior  Court,  to  succeed  Judson 
Harmon,  who  had  resigned  to  enter  President  Cleveland's 
cabinet. 

In  1886  Judge  Taft  married  Miss  Helen  Herron,  daughter  of 
Hon.  John  W.  Herron,  of  Cincinnati.  They  have  three  children, 
Robert  Alphonso,  Helen  and  Charles  Phelps,  2d. 

His  Judicial  Career  Begun. 

His  appointment  as  Judge  of  the  Superior  Court  was  the 
beginning  of  the  judicial  career  which  was  Taft's  ambition,  and 
for  which  he  was  so  eminently  fitted.  He  made  such  a  record 
as  a  judge  that  at  the  close  of  his  appointed  term  he  was  tri- 
umphantly elected  for  another  term.  But  already  he  had  at- 
tracted attention  outside  his  State,  and  he  had  served  but  two 
years  of  the  five  years  for  which  he  had  been  elected  when 
President  Harrison  asked  him  to  take  the  difficult  post  of  Solici- 
tor-General of  the  United  States.  This  was  an  office  of  the  ut- 
most importance,  involving  not  only  wide  learning  and  tremendous 
application,  but  the  power  of  clear'  and  forceful  presentation  of 
argument.  Two  of  the  cases  which  he  conducted  as  solicitor- 
general  involved  questions  of  vital  importance  to  the  entire  coun- 
try. The  first  grew  out  of  the  seal  fisheries  controversy  with 
Great  Britain.  Mr.  Taft,  won  against  such  eminent  counsel  as 
Joseph  H.  Choate,  who  is  widely  recognized  as  a  leader  of  the 
American  bar.  The  other  was  a  tariff  case  in  which  the  law  was 
attacked  on  the  ground  that  Speaker  Reed  had  counted  a  quorum 
when  the  bill  passed  the  House.      That,  too,  he  won. 

On  the  Federal  Bench. 

Mr.  Taft's  record  as  solicitor-general  so  clearly  proved  his 
fitness  for  the  bench  that  after  three  years  in  Washington  he 
was  sent  back  to  Ohio  as  judge  of  the  Sixth  Federal  Circuit,  a 
post  generally  recognized  as  a  preliminary  step  to  the  Supreme 
Court,  which  was  then  the  goal  of  his  ambition. 

It  was  during  his  seven  years  on  the  federal  bench  that  Mr. 
Taft's  qualities  as  a  judge  became  known  throughout  the  country. 
He  was  called  upon  then  to  decide  some  of  the  most  important 
cases  that  have  ever  been  tried  in  the  federal  courts,  in  the 
conduct  of  which  he  established  an  enviable  reputation  for  learn- 
ing, courage  and  fairness — three  essential  attributes  of  a  great 
jurist.  His  power  of  application  and  his  ability  to  turn  off 
enormous  masses  of  work  received  ample  demonstration  during 
this  time.  It  was  in  this  period  of  his  service  that  he  rendered 
the  labor  decisions  which  have  made  him  famous  as  an  upright 
and  fearless  judge.  In  his  treatment  of  both  labor  and  capital 
he  showed  that  here  was  a  judge  who  knew  no  distinction  of 
parties  when  they  appeared  as  litigants  before  him.  He  voiced 
the  law  as  he  knew  it  and  the  right  as  he  saw  it,  no  matter 
where  the  blow  fell  or  whom  it  struck.  If  sometimes  the  de- 
cisions went  against  what  organized  labor  at  that  time  believed 
to  be  its  cause,  it  must  not  be  forgotten  that  no  clearer  or 
broader  statement  of  the  true  rights  of  labor  has  ever  been  made 
than  in  some  of  his  judicial  utterances.  Lawyers  conducting 
litigation  in  other  courts  on  behalf  of  labor  unions  have  often 
cited  these  decisions  of  Judge  Taft  in  support  of  their  conten- 
tions. Neither  should  it  be  forgotten  that  one  of  the  most  im- 
portant and  far-reaching  of  all  his  judgments  was  that  against 
the  Addyston  Pipe  Company,  in  which  for  the  first  time  the 
Sherman  anti-trust  law  was  made  a  living,  vital  force  for  the 
curbing  and  punishment  of  monopoly.  When  this  case  reached 
the  Supreme  Court,  Mr.  Taft  received  the  distinguished  and  un- 
usual honor  of  having  his  decision  quoted  in  full  and  handed 
down  as  part  of  the  opinions  of  the  high  court  which  sustained 
him  at  every  point. 

Blazing  the  Philippine  Trail. " 

Since  the  settlement  of  the  reconstruction  question  no  more 
delicate  or  fateful  problem  has  confronted  American  statesman- 
ship than  that  of  the  Philippines.     The  sudden  pitching  of  over- 


160  WILLIAM   HOWARD  TAFT. 

sea  territory  into  our  possession  as  a  result  of  the  war  with 
Spain,  created  a  situation  not  only  unexpected  hut  entirely  with- 
out precedent.  There  was  no  guide  for  our  statesmen.  The  path 
had  to  be  hewed  out  new  from  the  beginning.  There  was  no 
crystallization  of  opinion  among  the  American  people  as  to  what 
should  be  done  with  the  Philippines.  A  considerable  element 
was  vigorously  opposed  to  retaining  them,  but  the  vast  majority 
demanded  the  maintenance  of  American  sovereignty  there. 
Among  these,  at  first,  the  desire  was  undoubtedly  due  to  the 
glamour  of  aggrandizement.  The  possibility  of  wealth  some- 
where beyond  the  skyline  always  catches  the  imagination,  and 
there  can  be  no  question  that  the  great  mass  of  the  people  moved, 
without  serious  thought  of  the  consequences,  toward  American 
exploitation  of  the  islands. 

But  even  at  that  early  day  there  were  a  few — a  very  few — 
among  the  leaders  of  American  thought  and  action,  who  saw 
clearly  the  responsibility  thrust  upon  the  country  by  the  ad- 
ventitious possession  of  the  Philippines,  and  determined  to  meet 
it  fully,  no  matter  what  clamor  of  opposition  might  arise.  Among 
these  President  McKinley  was  one.  Mr.  Taft  was  another.  Mr. 
Taft  had  been  opposed  to  taking  the  islands.  He  was  opposed 
to  retaining  them.  More  than  all  he  opposed  their  exploitation 
for  American  benefit,  He  believed  that  the  Philippines  belonged 
to  the  Filipinos,  and  should  be  developed  in  the  interest  of  their 
own  people. 

Shouldering   the  "White  Man's  Burden." 

He  saw  the  possibility  of  lifting  a  feeble,  ignorant  people 
into  the  light  of  liberty  and  setting  them  upon  the  path  to  intelli- 
gent, efficient  self-government.  That  possibility  reconciled  him 
to  the  continuance  of  American  authority  over  the  islands,  for 
none  saw  more  clearly  than  he  the  chaos  certain  to  result  from 
immediate  independence  for  the  Filipinos,  with  its  inevitable  and 
speedy  end  in  complete  and  hopeless  subjection  to  some  other 
power.  Therefore,  when  President  McKinley  asked  him  to  go 
to  Manila  and  undertake  the  difficult  and  thankless  task  of  start- 
ing the  Filipinos  upon  their  true  course,  he  sacrificed  the  judicial 
career  which  was  his  life's  ambition  and  shouldered  the  "White 
Man's  Burden."  It  was  in  March,  1900,  that  he  received  his  ap- 
pointment as  chairman  of  the  Philippine  Commission. 

Not  many  Americans  have  ever  comprehended  thoroughly  the 
size  of  Mr.  Taft's  undertaking,  or  the  full  meaning  of  his  achieve- 
ment. Through  a  bungle  in  our  first  dealings  with  Aguinaldo 
and  the  Filipinos  the  entire  native  population  of  the  islands  had 
come  to  believe,  with  some  reason,  that  the  Americans  were 
their  enemies  and  had  betrayed  them.  Mr.  Taft  arrived  in 
Manila  to  find  a  people  subdued  by  force  of  arms,  but  unanimously 
hostile,  sullen  and  suspicious.  They  were  still  struggling,  with 
the  bitterness  of  despair,  against  the  power  in  which  they  all 
saw  only  the  hand  of  the  oppressor. 

Overcoming  the  Barrier  Between  East  and  West. 

Moreover,  their  leaders  had  been  inoculated  with  the  belief 
that  between  West  and  East  there  is  an  impassible  barrier  which 
will  always  prevent  the  Occidental  from  understanding  and  sym- 
pathizing with  the  Oriental.  The  experience  of  generations  had 
confirmed  them  in  that  belief.  The  only  government  in  their 
knowledge  was  tyranny.  The  only  education  in  their  history  was 
deceit.  The  only  tradition  they  possessed  was  bat  red  of  oppres- 
sion, made  concrete  for  them  by  their  experience  with  western 
domination. 

That  was  what  Mr.  Taft  had  to  face,  and  in  three  years  he 
bad  overcome  and  changed  it  all.  He  did  it  by  the  persuasive 
DOwer  of  the  most  winning  personality  the  Filipinos  had  ever 
known,  lie  met  them  on  their  own  level,  lie  lived  with  them, 
ate  with  them,  drank  with  them,  danced  with  them  and  he  showed 
them  that  hero  was  an  Occidental  who  Could  read  and  sympathize 
with  the  Oriental  heart,  lie  gave  them  a  new  conception  of 
justice,  and  they  saw  with  amazement    that    it    was  even-handed. 


WILLIAM   HOWARD  TAFT.  161 

respecting  neither  person  nor  condition,  a  great  leveler,  equalis- 
ing all  before  the  law.  They  saw  Mr.  Taft  understanding  them 
better  than  they  had  understood  themselves,  comprehending  their 
problems  more  wisely  than  their  own  leaders  had  done,  and  stand- 
ing all  the  time  like  a  rock  solidly  for  their  interests.  They 
saw  him  opposed  by  almost  all  his  countrymen  in  their  islands, 
denounced  and  assailed  with  the  utmost  vehemence  and  venom 
by  Americans  simply  because  he  steadfastly  resisted  American 
exploitation  and  persisted  in  his  declaration  that  the  Philippines 
should  be  for  the  Filipinos.  They  saw  him  laboring  day  and 
night  in  their  behalf  and  facing  death  itself  with  cheerful  resig- 
nation in  order  to  carry  on  their  cause.  It  was  a  revelation 
to  them.  It  was  something  beyond  their  previous  ken,  outside 
of  all  their  experience,  their  education  and  their  tradition.  It 
convinced  them. 

A   Revelation    to    the   Filipinos. 

Mr.  Taft  gave  them  concrete  examples  of  disinterestedness 
and  good  faith,  which  they  could  not  fail  to  comprehend.  He 
gave  them  schools  and  the  opportunity  of  education,  one  of  the 
dearest  wishes  of  the  whole  people.  No  man  who  was  not  in  the 
Philippines  in  the  early  days  of  the  American  occupation  will  ever 
understand  thoroughly  with  what  pitiful  eagerness  the  Filipino 
people  desired  to  learn.  Men,  women  and  children,  white  haired 
grandfathers  and  grandmothers  craved  above  everything  the 
opportunity  to  go  to  school  and  receive  instruction  in  the  simplest 
rudiments.  It  is  difficult  to  tell  how  deeply  that  eager  desire 
touched  Mr.  Taft  and  how  earnestly  he  responded  to  it. 

But  education  was  only  a  beginning.  Mr.  Taft  gave  .the  Fili- 
pinos the  opportunity  to  own  their  own  homes.  It  was  another 
con crete  example  of  simple  justice.  When  they  saw  him  negotiat- 
ing for  the  friar  lands,  securing  for  the  Filipinos  the  right  to 
buy  those  lands  on  easy  terms,  it  went  home  to  the  dullest  among 
them  that  he  was  working  unselfishly  in  their  behalf. 

And  they  saw  his  justice  in  their  courts.  For  the  first  time 
in  all  their  experience  the  poorest  and  humblest  Filipino  found 
himself  able  to  secure  an  even-handed,  honest  decision,  without 
•purchase  and  without  influence. 

Even  that  was  not  all.  They  saw  Mr.  Taft  literally  and  faith- 
fully keeping  his  promise  and  calling  Filipinos  to  share  in  their 
own  government,  not  merely  in  the  subordinate  and  lowly  places 
which  they  had  been  able  to  purchase  from  their  old  masters, 
but  in  the  highest  and  most  responsible  posts.  They  saw  men 
of  their  race  called  to  membership  in  the  commission,  in  the 
supreme  court  and  in  all  the  other  branches  of  their  govern- 
ment. And  they  believed  the  promise  of  even  wider  experience  of 
self-government  to  come. 

An   Unparalleled  Achievement. 

It  was  a  practical  demonstration  of  honesty  and  good  faith 
such  as  the  Philippines  had  never  known.  It  was  a  showing  of 
sympathy,  justice  and  comprehension  which  could  not  be  resisted. 
Conviction  followed  it  inevitably.  The  whole  people  knew — be- 
cause they  saw — that  the  Phillippines  were  to  be  maintained  for 
the  Filipinos,  and  they  recognized  their  own  unfitness  for  the 
full  responsibilities  of  independent  self-government,  and  cheer- 
fully set  themselves  to  the  task  of  preparation. 

That  is  the  achievement  of  Mr.  Taft  in  the  Philippines.  It 
has  scarcely  a  parallel  in  history.  What  it  cost  him  he  paid 
without  question  or  complaint.  He  had  given  up  his  judicial 
career  when  he  went  to  Manila.  But  three  times  in  the  course 
of  his  service  for  the  Filipinos  the  Opportunity  to  re-enter  it 
came  to  him,  each  time  with  an  offer  of  a  place  on  the  Supreme 
Court  which  had  been  his  life-long  goal.  Each  time  he  refused  it. 
Not  even  President  Roosevelt  understood  the  'call  to  Mr.  Taft 
from  the  Filipinos,  and  when  he  offered  a  Supreme  Court  justice- 
ship to  Mr.  Taft  he  accompanied  it  with  almost  a  command.  But 
Mr.  Taft  declined.  He  saw  clearly  his  duty  lay  to  the  people 
whom  he  had  led  to  believe  in  him  as  the  personification  of  Amer 
ican  justice  and  gpod  faith,  and  he  made  President  Roosevelt 


1G2  WILLIAM   HOWARD  TAFT. 

see  it,  too.  How  the  Filipinos  felt  was  shown  when  on  hearing 
of  the  danger  that  Mr.  Taft  might  be  called  away  from  Manila, 
they  nocked  in  thousands  about  his  residence  and  begged  him 
not  to  go.  When  ultimately  he  did  leave  the  islands  it  was 
only  to  come  home  as  Secretary  of  War,  in  which  office  he  could 
continue  his  direction  of  Philippine  affairs  and  make  sure  that 
there  should  be  no  deviation  from  the  successful  line  of  policy 
he  had  marked  out. 

The  Birth  of  a  Nation. 

What  was  the  result?  The  birth  of  a  nation.  The  great,  power- 
ful American  people,  through  the  compelling  agency  of  Mr.  Taft, 
had  paused  ever  so  slightly  in  its  triumphant  onward  march,  to 
stoop  down  and  lift  up  a  feeble,  ignorant  and  helpless  people 
and  set  it  on  the  broad  highway  to  liberty.  Vaguely,  uncer- 
tainly, not  comprehending  clearly  just  what  it  was  doing,  not 
understanding  always  fully  either  the  object  or  the  means  of 
accomplishment,  but  its  heart  right,  and  submitting  confidently 
to  the  leadership  of  a  man  in  whom  it  trusted  implicitly,  this 
Nation  had  assisted  in  a  new  birth  of  freedom  for  a  lowly  and 
oppressed  people.  To  William  Howard  Taft  belongs  the  lion's 
share  of  the  credit.  Not  often  is  it  given  to  one  man  to  do  such 
work  for  humanity.  Seldom  is  such  altruism  as  his  displayed. 
Many  other  honors  have  come  to  him;  many  others  will  yet 
come.  Among  them  all  none  will  be  of  greater  significance  or 
of  more  lasting  value  than  his  work  for  the  Filipinos. 

Secretary   of   War. 

It  is  not  important  here  to  discuss  in  detail  Mr.  Taft's  adminis- 
tration of  the  War  Department  since  he  succeeded  Elihu  Root 
as  Secretary  of  W~ar,  on  February  1,  19  04.  He  was  at  the 
head  of  it  during  the  years  of  its  greatest  range  of  activity. 
He  was  not  merely  Secretary  of  the  Army,  as  almost  all  his 
predecessors  were.  He  was  Secretary  of  the  Colonies.  Under 
his  direction  were  matters  of  the  utmost  importance  affecting 
every  one  of  the  over-sea  possessions  of  the  United  States.  The 
affairs  of  the  army  alone  have  often  proved  sufficient  to  occupy 
the  whole  attention  of  an  able  secretary.  Mr.  Taft  had  to 
handle  not  only  those  and  the  Philippine  and  Cuban  business, 
but  to  direct  the  construction  of  the  Panama  Canal  as  well. 
And  at  not  infrequent  intervals  he  was  called  on  to  participate 
in  the  direction  of  other  weighty  affairs  of  government. 

The  administration  of  canal  affairs  required  in  a  high  de- 
g»ee  that  quality  described  as  executive  ability.  The  building 
of  a  canal  is  a  tremendous  enterprise,  calling  constantly  for  I  lie 
exercise  of  sound  business  judgment.  In  it  Mr.  Taft,  as  Secre- 
tary of  War  and  President,  has  displayed  in  ripened  propor- 
tions the  abilities  he  foreshadowed  when  solicitor-general  and 
collector  of  internal  revenue. 


Jin  tiding   the   Canal. 

When  Mr.  Taft  became  Secretary  of  War  this  country  had  just 
taken  possession  of  the  canal  zone,  under  treaty  with  the  Republic 
of  Panama,  and  of  the  old  canal  property.  Including  the  Panama 
railroad,  by  purchase  from  the  French  company.  The  work  was 
all  to  do.  The  country  expected  the  dirt  to  fly  at  once.  The 
newspapers  and  periodicals  were  full  of  cartoons  representing 
Uncle  Sam  in  long  boots  with  a  spade  on  his  shoulder,  striding 
down  to  the  isthmus  to  begin  digging.  P>ut  before  there  could 
he  any  real  excavation  there  was  a  tremendous  task  to  meet. 
First  of  all  the  isthmus  must  he  changed  from  a  disease  breed- 
ing  pest-hole  to  a  place  where  Americans  could  live  and  work 
in  safety.  The  canal  zone  must  he  cleaned  up.  mosquitoes 
stamped  out  and  the  place  made  sweet  and  healthy.  Ilahita 
tions  must  he  const  ructed  for  many  thousands  of  workmen 
and  their  families.  •  The  cities  bt  Panama  and  Colon,  at  the 
terminal  of  'he  canal,  must  he  made  thoroughly  sanitary  ai  d 
Supplied  with  water  and  sewers.     An  organization    for   the  work 


WILLIAM    HOWARD   TAFT.  168 

of  canal  construction  must  be  perfected  and  millions  of  dollars 
worth  of  machinery  and  supplies  must  be  purchased  and  trans- 
ported to  the  isthmus.- 

All  these  things,  however,  were  of  a  purely  business  char- 
acter. It  required  only  time  and  ability  to  handle  them  prop- 
erly. But  there  was  another  matter  to  be  taken  care  of  before 
these  could  be  undertaken,  and  it  was  of  a  decidedly  different 
nature.  The  Hay-Varilla  treaty  with  Panama  had  secured  to 
the  United  States  all  the  rights  necessary  for  complete  control 
of  the  canal  zone,  and  it  became  of  the  utmost .  importance  to 
insure  the  maintenance  of  friendly  relations  with  the  people 
of  the  isthmus  republic.  It  would  certainly  greatly  increase 
the  ordinary  difficulties  of  building  the  canal  if  our  people  had 
to  encounter  the  hostilities  of  the  Panamanians. 

Here  was  a  problem  largely  similar  to  that  met  by  Mr. 
Taft  in  the  Philippines,  and  calling  for  the  exercise  of  the  same 
qualities  of  tact,  sympathy,  justice  and  patience  which  he  had 
exhibited  in  the  Far  East. 

It  became  his  task  to  convince  the  Panama  people  and 
government  that  the  United  States  had  not  gone  to  the  isthmus 
to  build  a  rival  State  instead  of  a  canal.  As  head  of  the  War 
Department,  and  the  superior  of  the  Canal  Commission,  he 
conducted  all  the  affairs  of  this  Government  with  the  Republic 
of  Panama  following  the  ratification  of  the  original  treaty,  and 
succeeded  in  keeping  our  relations  with  the  isthmus  uniformly 
pleasant.  He  made  several  trips  to  the  canal  zone  and  exam- 
ined affairs  there  with  his  own  eyes. 

Real  Self-Government  for  Cuba. 

Aside  from  the  Philippines  and  the  Canal  the  greatest  call 
made  upon  Mr.  Taft  when  he  was  Secretary  of  War  came  from 
Cuba.  This  was  a  case  largely  similar  to  the  Philippine  prob- 
lem. The  American  people  have  so  long  imbibed  the  theory 
and  practice  of  self-government  with  their  mothers'  milk  that 
they  have  developed  a  tendency  to  believe  any  people  fitted  for 
it  who  desire  it.  To  us  liberty  is  self-government,  but  to  many 
a  people,  with  neither  experience  nor  tradition  of  anything  but 
practical  autocracy,  self-government  is  only  license.  So  it  was 
with  the  Cubans.  When  our  intervention  had  freed  that  island 
from  the  Spanish  yoke  we  deemed  it  sufficient  insurance  of 
successful  government  for  the  Cubans  to  require  them  to  adopt 
a  constitution  before  we  turned  the  island  over  to  them.  We 
ignored  the  fact  that  Cuba  had  no  experience  of  constitutions 
or  understanding  of  their  functions.  So  when  Cuba  had  con- 
formed to  our  requirement  we  sailed  away  from  Havana  and 
left  her  to  work  out  her  own  salvation  unaided  and  untaught. 

The  result  of  that  folly  was  inevitable  and  not  long  de- 
layed. The  Cubans  having  adopted  a  constitution  they  had  not 
the  slightest  idea  of  what  to  do  with  it.  They  proceeded  to 
govern  under  the  only  system  of  which  they  had  any  knowledge. 
The  proclamation  of  the  President  took  the  place  of  the  old 
royal  decree.  He  created  by  his  fiat  the  departments  of  gov- 
ernment which  should  have  been  established  by  law  of  Congress 
under  authority  of  the  Constitution.  Freedom  in  the  American 
sense  was  unknown  in  Cuba. 

The  experiment  was  aimed,  toward  chaos  and  its  expecta- 
tion was  quickly  realized.  In  September,  1906,  the  United 
States  had  to  intervene,  again,  and  the  task  fell  on  Mr.  Taft. 
Fortunate  it  was  both  for  the  United  States  and  Cuba  that  it 
was  so.  With  his  experience  of  the  Filipino  as  a  guide  and 
the  magnetism  of  his  personality  as  a  lever,  Mr.  Taft  placated 
the  warring  factions  and  secured  peaceable  intervention.  Then 
he  devised  and  set  up  a  provisional  government  which  all  the 
Cubans  accepted. 

It  was  the  intention  then  to  maintain  the  government  only 
long  enough  to  give  the  Cubans  a  fair  election  at  which  they 
might  select  their  own  government  by  full  and  free  expression 
of  their  own  will.  But  almost  immediately  the  provisional 
government  discovered  the  fundamental  mistake  made  by  the 
earlier  American  administration.  It  found  that  the  Cubans  had 
been   attempting    to    administer    a   government   which    never   had 


164  WILLIAM    HOWARD   TAFT. 

heen    organized    and    existed   only    by    virtue    f>f    the    President's 

will.  Patiently  the  provisional  government  pet  to  work,  under 
the  direction  of  Mr.  Taft,  to  provide  the  organization  under 
the  fundamental  law  which  the  Cubans  had  never  known  was 
the  essentials  of  successful  self-government.  Thus,  to  two 
peoples  has  Mr.  Taft  been  called  upon  to  give  insiruction  in 
practical  self-government. 

A   Combative   Altruist. 

Combative  altruism  Is  Mr.  Taft's  most  distinguished  charac- 
teristic. As  Secretary  of  War  he  earned  the  world-wide  sobri- 
quet of  "Secretary  of  Peace."  He  fought  some  hard  battles,  but 
they  were  with  bloodless  weapons,  and  the  results  were  vic- 
tories for  peace.  The  greater  the  degree  of  altruism  the  keener 
was  his  zeal,  the  harder  and  more  persistent  his  battle.  The 
greatest  struggle  of  his  career,  in  which  he  disregarded  utterly 
his  settled  ambition  and  cheerfully  faced  a  continuing  serious 
menace  to  life  itself,  was  on  behalf  of  the  weakest  and  most 
helpless  object  in  whose  cause  he  was  ever  enlisted — the  Fili- 
pino people.      That  was  the  purest  and  loftiest  altruism. 

Rut  although  this  is  the  dominant  trait  of  Mr.  Taft,  he  is 
well  known  for  other  qualities.  His  judicial  temperament,  founded 
upon  a  deep-seated,  comprehensive  and  ever  alert  sense  of  right 
and  wrong;  his  courage,  proved  by  repeated  and  strenuous 
tests;  his  calm,  imperturbable  judgment,  and  his  all-embracing 
sympathy  are  characteristics  that  have  been  often  and  widely 
noted.  They  are  his  by  right  of  inheritance  from  generations 
of  broad-minded,  upright  men  and  women.  The  development 
of  his  country  has  extended  the  range  of  his  opportunity  and 
given  greater  scope  to  his  activities  than  was  enjoyed  by  Al- 
phonso  Taft,  his  father,  or  Peter  Rawson  Taft,  his  grandfather, 
but  in  character  and  intellect  he  is  their  true  descendant. 


Nearly  four  years  have  elapsed  since  the  foregoing  chapter 
on  the  life  of  William  Howard  Taft  was  written. 

What  it  conveyed  of  prophecy  has  been  fulfilled;  what  it 
spoke  in  eulogy  has  been  vindicated.  At  the  close  of  his  first 
four-year  term,  President  Taft  has  met  the  expectations  of 
the  people,  his  sympathies  have  broadened,  his  experiences 
ripened.  Malevolent  attack  at  no  time  undermined  his  de- 
termination and  courage  to  pursue  the  right;  temptations  to 
cater  to  hollow  popular  applause  at  the  expense  of  the  general 
welfare  left  him  unmoved.  Rravely,  steadfastly  and  patiently 
he  has  performed  the  duties  of  his  high  office,  ever  seeking 
the  light  that  pointed  the  path  to  progress  and  reform.  And 
when  the  Republican  National  Convention  of  1912,  on  June 
2 2d,  gave  him  the  renomination  he  had  so  well  earned,  he 
again  held  aloft  the  banner  of  social  and  material  betterment 
of  all  the  people,  which  four  years  before  was  so  wisely  en- 
trusted to  his  strong  hands.  And  in  those  four  years  the 
progress,  development  and  augmented  prosperity  of  the  Amer- 
ican people  constitutes  the  important  chapter  that  is  to  be 
added  to  President  Taft's  biography,  a  chapter  upon  which  are 
based  his  claims  to  greatness,  now  and  in  the  future  to  be 
acknowledged  by  the  people  whom  he  has  served  so  well. 

In  the  wealth  of  altruistic  achievement  no  record  of  an 
American  President  has  ever  exceeded  that  of  President  Taft, 
and  that  record,  details  of  which  are  supplied  in  other  chap- 
ters of  this  book,  can  be  touched  upon  here  only  at  its  highest 
peaks.  Upon  that,  record  the  Republican  Party,  going  again 
before  the  American  people,  will  ask  a  vote  of  confidence  in 
the  high-principled  American  statesman,  whose  courage,  ten- 
acity of  purpose,  integrity  and  smiling  efficiency  have  made  it 
possible. 

If  President  Taft  had  done  no  more  than  to  usher  in  an 
era  of  calm  enforcement  of  the  law,  where  rich  malefactor 
stands  on  a  level  with  the  criminal  poor,  he  would  yet  be  ac- 
claimed by  historians  as  Taft,  the  Just.  If  he  had  done  no 
more  than  to  write  the  stamp  of  his  disapproval  on  the  wool, 
steel  and  free  list  measures,  to  register  his  unyielding  opposi- 


WILLIAM    HOWARD   TAFT.  165 

tion  to  the  recall-of-judges  monstrosity — all  in  the  face  of 
warnings  that  the  acts  in  question  went  to  his  very  political 
life- — he  would  yet  be  regarded  as  a  man  of  unflinching  cour- 
age, as  a  Doer  of  the  Right  as  God  had  given  him  the  light 
to  see  it.  And  the  same  calm  courage  marked  his  course  in 
the  battle  he  waged  for  the  cause  of  peace,  when  he  endeavored 
to  place  the  United  States  in  the  vanguard  of  nations  who 
are  striving  for  a  solution  of  all  international  problems  with- 
out a  resort  to  the  sword — endeavors  in  which  he  was  thwarted 
by  the  opposition  of  Democrats  and  personal  representatives 
of  Theodore  Roosevelt  in  the  United  States  Senate. 

Great  as  were  these  achievements,  thus  lightly  touched  upon, 
they  constitute  but  a  small  part  of  the  record  as  it  is  written. 
The  highest'  court  in  the  land  has  given  to  the  people  an 
interpretation  of  the  Sherman  law,  under  which  the  great 
corporations  of  the  Nation  now  stand  ready  to  square  their 
operations  to  the  terms  of  the  law.  The  President's  recom- 
mendation that  future  revisions  of  the  tariff  be  taken  up 
schedule  by  schedule,  following  the  report  of  a  non-partisan 
Tariff  Commission  which  was  at  first  decried,  is  now  accepted 
by  national  leaders  irrespective  of  their  political  affiliations. 
The  Payne  law  has  maintained  the  prosperity  of  the  country, 
providing  substantial  revision  downward,  yet  producing  suffi- 
cient revenue,  thanks  to  its  many  wise  provisions,  including 
the  imposition  of  an  excise  tax  on  corporations,  to  turn  a  large 
Roosevelt  deficit  into  an  equally  large  Taft  surplus. 

There  is  too  much  in  the  record  of  President  Taft's  first 
term  in  office  to  permit  anything  more  than  an  index  of  it 
to  appear  in  a  chapter  devoted  to  his  career.  It  includes  Gov- 
ernment victories  in  the  Standard  Oil  and  Tobacco  Trust  cases; 
fearless  enforcement  of  the  Sherman  Act ;  the  abrogation  of 
the  passport  treaty  with  Russia;  the  approaching  completion 
of  the  Panama  Canal,  without  hint  of  scandal;  the  admission 
of  Arizona  and  New  Mexico  to  Statehood;  the  exercise  of 
rigid  economy  in-  Government  Departments,  at  no  sacrifice 
of  efficiency,  with  attendant  reduction  of  estimates  and  appro- 
priations, and  the  placing,  for  the  first  time  in  history,  of  the 
Post  Office  Department  on  a  self-supporting  basis;  the  carry- 
ing on  of  military  maneuvers  along  the  Mexican  border  that 
made  for  the  greater  safety  of  Americans  on  both  sides  of  the 
border  and  that  preserved  American  neutrality.  That  record 
includes  the  reorganization  of  the  Army,  providing  for  un- 
precedented mobility  of  troops,  and  for  the  maintenance  and 
extension  of  the  power  of  the  Navy  as  an  international  agency 
for  peace  and  a  properly  equipped  guardian  of  American  inter- 
ests under  the  provisions  of  the  Monroe  Doctrine;  the  re- 
organization of  the  customs  service,  with  its  attendant  elimina- 
tion of  corruption,  exposure  and  punishment  of  frauds,  and 
recovery  of  millions  of  dollars;  the  creation  of  a  Bureau  of 
Mines ;  the  successful  issue  of  the  Workmen's  Compensation 
Act  litigation  in  the  Supreme  Court,  leading  to  additional  legis- 
lation in  Congress;  the  abolition  of  the  "pork  barrel"  system 
of  rivers  and  harbors  appropriations;  the  further  advance- 
ment of  the  cause  of  employers'  liability  legislation;  the 
negotiation  and  ratification  of  a  treaty  with  Japan  which 
changed  troubled  and  tense  relations  into  those  of  undisputed 
amity;  the  negotiation  of  treaties  with  Nicaragua  and  Hon- 
duras, making  for  permanent  peace.  Postal  savings  banks 
have  been  established  and  parcels  post  is  on  the  way.  Reci- 
procity with  Canada,  approved  by  the  American  Congress,  was 
rejected  by  the  Canadian  electorate,  who  saw  in  it  a  greater  ad- 
vantage to  the  farmers  of  the  United  States  than  to  the  farmers 
of  our  neighbor  to  the  North.  Judicial  appointments  were 
taken  out  of  politics  and*  non-political  methods  were  made 
successful  in  the  taking  of  the  Thirteenth  Census.  The  In- 
come Tax  Amendment  has  been  sent  to  the  States  for  rati- 
fication and  approval.  Conservation  policies  have  been  placed 
on  a  real  working  basis.  The  railrcfads  of  the  country  have 
Deen  made  agencies  for  the  greatest  good  and  were  compelled 
to  abandon  the  project  to  increase  rates  without  submitting 
there  to  the  Interstate  Commerce  Commission  for  approval. 
China  was  opened  to  American  commerce  and  finance  on  terms 


106  WTLLIAM    HOWARD    TAFT. 

of  equality  with  the  other  powers  of  the  world.  A  boiler 
inspection  law  was  enacted,  greater  liberality  was  exercised 
toward  the  veterans  of  the  Civil  War,  the  administration  of 
law  was  reformed  in  important  particulars,  recommendations 
were  sumitted  looking  to  a  revision  of  the  National  Currency 
that  will  make  panics  impossible  in  the  future.  Bucket-shop 
and  get-rich-quick  concerns  were  crushed  out  of  existence, 
ind  White  Slavery  and  Peonage  have  become,  in  a  measure, 
problems  of  the  past. 

Pages  on  pages  could  yet  be  written  and  leave  the  history 
of  those  four  years  of  Taftian  achievement  incomplete.  What 
is  here  presented  serves  not  even  as  a  complete  index,  but 
it  will  point  the  way  to  those  who  would  seek  further.  It 
points  the  record  upon  which  the  party  presents  the  claims 
of  William  Howard  Taft  to  the  American  people  in  November. 


What  the  capitalist,  who  is  the  employer  of  labor,  must  face  is 
that  the  organization  of  labor — the  labor  union — is  a  permanent 
condition  in  the  industrial  world.  It  has  come  to  stay. — Hon.  Wm. 
H.  Tai't,  at  Cooper  Union,  New  York  City. 

Under  existing  conditions  the  blindest  course  that  an  employer 
of  labor  can  pursue  is  to  decline  to  recognize  labor  unions  as  the 
controlling  influence  in  the  labor  market  and  to  insist  upon  dealing 
only  with  his  particular  employes. — Hon.  Win.  H.  Taft,  at  Cooper 
Union,   New   York   City. 

This  brings  me  to  the  question  of  arbitration.  It  goes  without 
saying  that  where  an  adjustment  cannot  be  reached  by  negotia- 
tion, it  is  far  better  for  the  community  at  large  that  he  differences 
be  settled  by  submission  to  an  impartial  tribunal  and  agreement 
to  abide  its  judgment  than  to  resort  to  a  trial  of  resistance  and 
endurance  by  lockouts  and  strikes. — Hon.  WTm.  H.  Taft,  at  Cooper 
Union,  New  York  City. 

I  do  not  know  any  place  which  thrills  one's  bosom  with  patriotic 
ecstasy  as  the  sepulchre  of  the  unknown  dead  in  Arlington  Ceme- 
tery. The  thought  of  the  heroism  and  sacrifice  of  those  -who, 
without  a  murmur  and  without  even  hope  of  personal  credit  or 
glory,  gave  up  all  to  maintain  a  sacred  cause,  makes  all  motives 
of  personal  advancement  of  ambition  seem  small  and  sordid.— 
Hon.   Wm.   H.   Taft,   at   Riverside   Park,   New   York    City. 

If  I  am  elected  President,  I  shall  urge  upon  Congress,  with  every 
hope  of  success,  that  a  law  be  passed  requiring  a  filing  in  a  Fed- 
eral oflice  of  a  statement  of  the  contributions  received  by  com- 
mittees and  candidates  in  elections  for  members  of  Congress  and 
in  such  other  elections  as  are  constitutionally  within  the  control 
of  Congress. — From  Hon.  Wm.  H.  Taft's  speech  accepting  presi- 
dential   nomination. 

In  spite  of  the  general  comfort,  there  have  been  made  manifest 
by  signs  not  to  be  misunderstood,  a  quickening  of  the  public 
conscience  and  a  demand  for  the  remedy  of  abuses,  the  out- 
growth of  this  prosperity  and  for  a  higher  standard  of  business 
integrity.  Every'  lover  of  his  country  should  have  a  feeling  of 
pride  and  exaltation  in  this  evidence  that  our  society  is  still 
sound  at   the  core. — Hon.  Wm.   H.  Taft,   at   Columbus,   Ohio. 

There  is  a  class  of  capitalists  who  look  upon  labor  unions  as 
per  se  vicious,  and  a  class  of  radical  labor  unionists  who  look  upon 
capital  as  labor's  natural  enemy.  1  believe,  however,  that  the 
great  majority  of  each  class  are  gradually  becoming  more  con- 
ciliatory in  their  attitude,  the  one  toward  the  other.  Between 
tliein  is  a  larger  class,  neither  capital  nor  labor  unionist,  who  are 
without  prejudices,  and  I  hope  I  am  one  of  those. — Hon.  Wm.  H. 
Taft,   at   Cooper   Union,   New   York   City. 

The  course  of  the  Republican  party,  since  its  organization  in 
IS."i(t,  and  its  real  assumption  of  control  in  18G1,  down  to  the  pres- 
ent day,  is  remarkable  for  the  foresight  and  ability  of  its  leaders, 
for  the  discipline  and  solidarity  of  its  members,  for  its  efficiency 
and  deep  sense  of  responsibility  for  the  preservation  and  success- 
ful maintenance  of  the  government,  and  for  the  greatest  resource- 
f ulness  in  meeting  the  various  trying  and  diflicult  issues  which 
a  history  of  now  a  full  half-century  have  presented  for  solution. 
— Hon.   Wm.    H.   Taft,   at    Kansas    City,   Mo. 

The  administration  of  exact  justice  by  courts  without  fear  or 
favor,  unmoved  by  the  influence  of  the  wealthy  or  by  the  threats 
of  the  demagogue,  is  the  highest  ideal  that  a  government  of  the 
people  can  strive  for,  and  any  means  by  Which  a  suitor,  however 
unpopular  or  poor,  is  deprived  of  enjoying  this  is  to  be  condemned. 
It  is  important,  however,  that  appeal*  to  judicial  remedies  should 
be  limited  in  such  a  way  that  parties  will  not  use  them  merely 
to  delay  and  so  clog  efficient  and  just  executive  or  legislative) 
action. —  He***.    Win.    11.    Taft,    at    Columbus,    Ohio. 


THE  TRUTH  ABOUT  THOSE 
DELEGATES. 


Here  are  the  facts  in  relation  to  the  contested  seats  in  the 
Republican  National  Convention.  It  is  a  summary  of  a  detailed 
statement  going  carefully  into  all  of  the  cases.  This  statement 
is  signed  by  Mr.  Victor  Rosewater,  Chairman  of  the  former 
Republican  National  Committee;  by  Mr.  T.  H.  Devine,  of  Colo- 
rado, Chairman  of  the  Committee  on  Credentials  of  the  Republi- 
can National  Convention,  and  by  Mr.  Charles  D.  Hilles,  Chairman 
of  the  present  Republican  National  Committee. 

The  total  number  of  delegates  summoned  to  the  Republican 
National  Convention  of  1912  under  its  call  was  1078,  with  540 
necessary  to  a  choice.  Mr.  Taft  had  561  votes  on  the  first  and 
only  ballot  and  was  declared  the  nominee. 

There  were  252  delegates  to  the  Republican  National  Conven- 
tion of  1912  whose  seats  were  contested ;  238  of  these  were  Taft 
delegates  whom  Roosevelt  people  desired  to  unseat  and  14  were 
Roosevelt  delegates  whom  Taft  people  sought  to  unseat.  In 
accordance  with  the  rules  and  long-established  usage  of  the  party, 
such  contests  are,  in  the  first  instance,  heard  by  the  Republican 
National  Committee,  consisting  of  one  member  from  each  State 
and  Territory.  This  committee  decides  which  names  shall  go 
upon  the  temporary  roll  of  the  convention. 

It  must  be  borne  in  mind  that  the  National  Committee  which 
passed  upon  the  contests  of  1912  was  the  committee  chosen  in 
1908  when  Roosevelt  was  the  leader  of  the  party,  at  a  time  when 
his  influence  dominated   the  convention. 

When  a  temporary  organization  of  the  convention  has  been 
effected,  there  is  elected  a  Committee  on  Credentials,  consisting 
of  one  member  from  each  State  and  Territory,  to  which  an  appeal 
lies  from  the  decision  of  the  National  Committee,  and  from  the 
decision  of  the  Committee  on  Credentials  a  contest  may  be  brought 
to  the  convention  itself. 

Among  the  delegates  whose  seats  were  contested  were  74  dele- 
gates at  large  from  the  fourteen  States  of  Alabama,  Arizona, 
Arkansas,  Florida,  Georgia,  Indiana,  Kentucky,  Louisiana,  Michi- 
gan, Mississippi,  Missouri,  Texas,  Virginia  and  Washington.  The 
Missouri  case  was  decided  by  the  National  Committee  unanimously* 
in  favor  of  the  Roosevelt  delegates,  and  no  appeal  was  taken  to 
the  Committee  on  Credentials. 

The  Alabama,  Arkansas,  Florida,  Louisiana  and  Virginia  cases 
were  decided  against  Roosevelt  contestants  by  practically  unani- 
mous votes  of  the  National  Committee,  and  were  not  appealed 
to  the  Committee  on  Credentials. 

In  the  Kentucky  case  there  were  a  few  votes  in  the  National 
ronimittee  against  the  Taft  delegates  at  large  retaining  their 
seats,  but  the  majority  in  their  favor  was  overwhelming,  and  no 
appear!  was  taken  by  the  Roosevelt  people  to  the  Committee  on 
Credentials. 

In  the  Georgia  case  the  Taft  delegates  sustained  the  right  to 
their  seats  by  a  practically  unanimous  vote  in  the  National  Com- 
mittee, and  in  the  Committee  on  Credentials  the  vote  was  entirely 
unanimous. 

In  the  Indiana  case  the  seats  of  the  Taft  delegates  at  large 
were  confirmed  by  the  unanimous  vote  of  the  National  Committee, 
the  member  from  that  State  not  voting.  In  the  Committee  on 
Credentials  13  votes  only  were  cast  in  favor  of  seating  the  Roose- 
velt contestants. 

In  Mississippi  the  Taft  delegates  at  large  established  the  right 
to  their  scats  by  the  unanimous  vote  of  the  National  Committee, 
and  also  by  the  practically  unanimous  vote  of  the  Credentials 
ronimittee. 

There  were  only  four  States — Arizona,  Michigan,  Texas  and 
Washington,  having  in  all  28  delegates,  including  six  district  dele- 

167 


108  TRUTH  ABOUT  THOSE  DELEGATES. 

gates  from  the  State  of  /Washington — where  the  contests  were 
at  all  worthy  of  the  name,  and  in  none  of  the  fourteen  Stales 
did  the  contestants  at  large  bring  the  matter  to  a  record  vote  in 
the  convention,  and  no  roll  call  was  demanded  in  any  such  case. 

The  seats  of  ITS  district  delegates  were  contested.  In  these 
Congressional  districts  Taft  contests  were  brought  in  the  fourth 
California,  the  eleventh  Kentucky,  the  fifth  Missouri,  and  the 
third  and  fifteenth  Texas  districts,  involving  10  seats.  The  Taft 
delegates  from  the  fourth  California  district  were  given  their 
seats,  and  one  Taft  delegate  from  the  eleventh  Kentucky  district 
was  seated.  The  other  seven  seats  were  decided  in  favor  of  the 
Koosevelt  claimants. 

In  no  other  convention  was  so  much  care  exercised  or  pains 
vaken  or  so  much  time  devoted  to  the  careful  investigation  and 
fair  determination  of  contests.  No  delegate  was  permitted-  to 
vote  upon  any  contest  affecting  the  rTgTTr-TO  nis_own_geaE  in  no 
oTher :' "convention  were  there  ever  presented,  manifestly  for  the 
deception  of  the  puhlic,  so  many  wholly  unwarranted  and  unjusti- 
fied contests.  There  were  filed  contests  against  238  Taft  delegates, 
hid  in  two  cases  only,  involving  four  delegates — two  from  Cali- 
fornia and  two  from  the  ninth  district  of  Alahama — was  there 
a  roll  call  demanded  in  the  convention.  In  a  very  large  numher 
of  cases  the  right  of  the  Taft  delegates  was  affirmed  by  unani- 
mous consent  of  the  convention,  and  in  others  by  a  viva  voce 
vote,  no  roll  call  being  demanded. 


FRAUDULENT  ROOSEVELT  CONTESTS. 

In  the  four  Southern  States — Virginia,  Georgia,  Alabama  and 
Florida — where  practically  complete  sets  of  Roosevelt  contesting 
delegates  were  named,  the  alleged  conventions  which  named  them 
met  from  two  to  three  months  after  the  regular  Republican  organ- 
izations in  those  States  had  called  their  conventions  and  duly 
elected  Taft  delegates  to  the  national  convention.  That  these 
contests  were  based  upon  unworthy  motives  and  were  devised 
for  the  sole  purpose  of  deceiving  the  public  and  making  trouble 
for  Taft,  is  apparent  from  the  fact  that  the  regularly  elected 
Taft  delegates  in  every  case  were  seated  by  a  practically  unani- 
mous vote,  the  Roosevelt  members  of  the  committees  joining  with 
the  Taft  members  in  the  votes.  In  Alabama,  for  example,  the 
regular  conventions  were  held  in  February  and  March,  the  -State 
convention  at  Birmingham  and  the  district  conventions  in  their 
respective  districts,  while  the  Roosevelt  conventions,  both  State 
and  district,  were  all  held  in  Birmingham,  May  11th.  The  regular 
conventions  in  Georgia  were  held  generally  in  February  or  the 
early  part  of  March.  The  Roosevelt  conventions  were  all  held 
May  17th  or  18th.  The  Taft  conventions  in  Florida  were  all  held 
February  6th,  while  the  Roosevelt  conventions  were  all  held  May 
18th,  more  than  three  months  later,  except  one  which  met  April 
80th.  The  regularly  elected  Taft  delegates  from  Virginia  at  large 
were  chosen  in  a  State  convention  which  met  March  12th.  The 
Koosevelt  delegates  at  large  were  named  at  a  mass  meeting,  held 
without  any  party  authority  whatever  on  May  16th.  The  other 
Roosevelt  delegates  from  this  State  were  chosen  in  every  ease 
substantially  two  months  after  the  regular  Taft  delegates  had 
been  elected.1  It  is  needless  to  say  that  all  these  Southern  contests 
were  financed  by  money  which  came  from  the  North. 

A  careful  review  of  the  law  and  the  evidence  which  was  pre- 
sented to  the  National  Committee  and  the  Committee  on  Creden- 
tials will  satisfy  any  one  who  is  desirous  of  knowing  the  truth 
that  these  contests  were  decided  strictly  on  their  merits. 

There  were  instituted  against  238  of  the  delegates  regularly 
elected  for  Taft,  contests  on  behalf  of  Roosevelt.  These  contests 
were  avowedly  instigated  not  for  the  purpose  of  really  securing 
seats  in  the  convention,  not  for  the  purpose  of  adducing  evidence 
which  would  lead  any  respectable  court  to  entertain  the  contests, 
but  for  the  purpose  of  deceiving  the  public  into  the  belief  that 
Mr.  Roosevelt  had  more  voves  than  he  really  had.  while  the  con- 
ventions and  primaries  were  in  progress  for  the  selection  of  dele- 
gates. This  is  not  only  a  necessary  inference  from  the  character 
of  the  contests,  but  it  was  boldly  avowed  by  the  chief  editor  of 


TRUTH  ABOUT  THOSE  DELEGATES.  1G9 

the  newspapers  owned  by  Mr.  Munsey,  who  has  been  Mr.  Roose- 
velt's chief  financial  and  newspaper  supporter. 

The  238  contests  were  reduced  by  abandonment,  formal  or  in 
substance,  to  74.  The  very  fact  of  these  164  frivolous  contests 
itself  reflects  upon  the  genuineness  and  validity  of  the  remainder. 
The  74  delegates  include  six  at  large  from  Arizona,  four  at  large 
from  Kentucky,  four  at  large  from  Indiana,  six  at  large  from 
Michigan,  eight  at  large  from  Texas  and  eight  at  large  from 
Washington,  and  also  two  district  delegates  each  from  the  ninth 
Alabama,  the  fifth  Arkansas,  the  thirteenth  Indiana,  the  seventh, 
eighth  and  eleventh  Kentucky,  the  third  Oklahoma,  the  second 
Tennessee,  and  from  each  of  nine  districts,  the  first,  second,  fourth, 
fifth,  seventh,  eighth,  ninth,  tenth  and  fourteenth  of  Texas. 

Here,  in  brief,  is  the  real  story — and  the  facts — in  the  different 
cases : 

Contested   Delegates-at-Large. 

Arizona. 

In  the  Arizona  convention  there  were  93  votes.  All  the  dele- 
gates— six  in  number — were  to  be  selected  at  large.  The  counties 
were  entitled  to  select  their  delegates  through  their  county  com- 
mittee, or  by  primary.  In  one  county,  Maricopa,  a  majority  of 
the  committee  decided  to  select  its  delegates,  and  a  minority  to 
have  a  primary.  In  other  counties  there  were  some  contests,  and 
the  State  Committee,  following  the  usage  of  the  National  Com- 
mittee, gave  a  hearing  to  all  contestants  in  order  to  make  up  the 
temporary  roll.  There  was  a  clear  majority  of  the  Taft  delegates 
among  the  uncontested  delegates.  The  committee  made  up  the 
temporary  roll,  and  then  there  was  a  bolt,  64  remaining  in  the 
hall  and  25  withdrawing  therefrom.  The  case  of  the  Taft  majority 
was  so  clear  that  it  is  difficult  to  understand  why  a  contest  was 
made. 

Indiana. 

In  Indiana  the  four  Taft  delegates  at  large  were  elected  in  a 
State  convention  to  which  Marion  County,  in  which  Indianapolis 
is  situated,  was  entitled  to  128  votes.  A  primary  was  held  in 
Indianapolis,  at  which  Taft  polled  6000  and  Roosevelt  1400  votes. 
This  gave  Taft  106  delegates  in  the  State  convention  from  Marion 
County,  and,  if  they  were  properly  seated,  the  control  of  the  con- 
vention by  a  large  majority  was  conceded  to  Taft.  Attempt  was 
made  to  impeach  the  returns  from  Marion  County  by  charges  of 
fraud  and  repeating.  These  charges  were  of  a  general  character, 
without  specification,  except  as  to  one  ward,  out  of  fifteen  wards, 
and  then  the  impeaching  witness  admitted  he  could  not  claim 
fraud  enough  to  change  the  result  in  that  ward.  The  National 
Committee,  upon  which  there  were  fifteen  anti-Taft  men,  rejected 
the  Roosevelt  contestants  and  gave  the  Taft  delegates  their  seats 
by  a  unanimous  vote.  Senator  Borah  and  Mr.  Frank  B.  Kellogg. 
both  Roosevelt  men,  made  speeches  in  explaining  the  votes  in 
which  they  said  that  the  case  turned  wholly  on  the  Marion  County 
primary,  and  as  there  was  no  evidence  to  impeach  the  result  certi- 
fied, the  title  of  the  Taft  delegates  was  clear.  This  is  the  con- 
vention whose  proceedings  called  forth  such  loud  charges  of  theft 
and  fraud  from  Mr.  Roosevelt. 


Kentucky. 

In  Kentucky  a  contest  was  filed  against  only  three  of  the  four 
delegates  at  large.  The  fourth  Taft  delegate's  seat  was  uncon- 
tested. The  three  contestants  admitted  they  were  not  elected  by 
the  convention  which  sent  the  Taft  delegates,  or  by  any  other. 
They  only  contended  that  if  the  Roosevelt  forces  had  had  a  ma- 
jority, they  would  have  been  elected.  There  were  2356  delegates 
summoned  to  the  convention  by  Its  call.  There  were  449  of  these 
whose  seats  were  contested.  If  all  of  these  had  been  conceded  to 
Roosevelt,  it  would  have  made  the  Roosevelt  vote  297  votes  less 
than  a  majority.  The  appeal  to  the  Committee  on  Credentials 
from  the  decision  of  the  National  Committee  was  abandoned,  as 
it  ought  to  have  been. 


170  TRUTH  ABOUT  THOSE  DELEGATES. 

Michigan. 

In  Michigan  the  State  convention  had  in  it  about  1200  delegates. 
There  were  only  two  counties  in  dispute  or  contest.  One  was 
Wayne  County,  in  which  Detroit  is  situated,  and  the  other  was 
Calhoun  County.  The  evidence  left  no  doubt  that  the  Taft  men 
carried  Wayne  County  by  a  very  large  majority,  but  it  was 
immaterial  whether  this  was  true  or  not,  because  leaving  out  both 
Wayne  County  and  Calhoun  County,  the  only  counties  in  contest, 
the  Taft  delegates  outnumbered  by  several  hundred  the  Roosevelt 
delegates,  and  they  had  a  clear  majority  out  of  the  total  number 
of  votes  that  should  have  been  in  the  convention.  The  contest 
was  so  weak  as  to4iardly  merit  recital. 

Texas. 

In  Texas  there  were  249  counties,  of  which  four  have  no  county 
government.  The  245  counties  under  the  call  of  the  convention 
Were  allowed  to  have  something  over  1000  delegates  representing 
them,  who  were  given  authority  to  cast  248  votes.  Of  the  245 
counties,  there  were  99  counties  in  which  the  total  Republican 
vote  was  but  2000,  in  14  of  which  there  were  no  Republican  voters, 
in  27  of  which  there  were  less  than  ten  each,  and  in  none  of  which 
was  there  any  Republican  organization,  and  in  none  of  which  had 
a  primary  or  convention  been  held.  It  was  shown  that  Colonel 
Cecil  Lyon,  to  whom  had  been  assigned  as  referee  the  disposition 
of  the  patronage  of  the  National  Republican  Administration  for 
ten  years  in  the  State,  had  been  in  the  habit  of  controlling  the 
Republican  State  Convention  by  securing  from  two  Federal  office- 
holders in  each  of  these  99  counties  a  certificate  granting  a  proxy 
to  Colonel  Lyon,  or  a  friend  of  his,  to  represent  the  county,  as  if 
regularly  conferred  by  a  Republican  county  organization.  The 
National  Committee  and  the  Committee  on  Credentials  and  the 
convention,  after  the  fullest  investigation,  decided  that  these  99 
counties  in  which  the  Republican  vote  was  so  small,  and  in  which 
there  was  no  Republican  party,  no  convention,  no  primary,  no 
organization,  was  not  the  proper  source  for  a  proxy  to  give  a  vote 
equal  to  that  to  be  cast  by  the  other  146  counties  in  which  there 
was  a  Republican  organization,  and  in  which  primaries  or  con- 
ventions were  held.  The  two  committees  therefore  held  such  99 
proxies  to  be  illegal  and  not  the  basis  of  proper  representation. 
The  two  tribunals  who  heard  the  case  decided  that  they  should 
deduct  the  99  votes  from  the  total  of  245  and  give  the  representa- 
tion to  those  who  controlled  the  majority  of  the  remainder.  The 
remainder  was  152  votes,  and  out  of  that  the  Taft  men  had  carried 
89  counties,  having  90  votes.  This  gave  to  the  Taft  men  a  clear 
majority  in  the  State  convention,  and  with  it  eight  delegates  at 
large. 

Washington. 

The  contest  in  Washington  turned  on  the  question  whether  the 
Taft  delegates  appointed  by  the  County  Committee  in  King  County, 
in  which  Seattle  is  situated,  were  duly  elected  to  the  convention, 
or  whether  a  primary,  which  was  subsequently  held,  and  at  which 
Roosevelt  delegates  were  elected,  was  properly  called,  so  that  its 
result  was  legal.  Under  the  law,  the  County  Committee  had  the 
power  to  decide  whether  it  would  select  the  delegates  directly  or 
should  call  a  primary.  In  some  counties  of  the  State,  one  course 
was  pursued,  and  in  other  counties  the  other.  In  King  County 
the  committee  consisted  of  250  men,  the  majority  of  whom  were 
for  Taft,  and  that  majority,  acting  through  its  Executive  Com- 
mittee, selected  the  Taft  delegates  to  the  State  convention.  Mean- 
time, the  city  council  of  Seattle  had  redistricted  the  city.  It 
before  luid  250  precincts.  Now,  substantially,  the  same  territory 
was  divided  up  into  381  precincts.  The  Cbairman  of  the  County 
Committee  was  a  Roosevelt  man.  lie  had  been  given  authority 
by  general  resolution  to  till  vacancies  occurring  in  the  commit  tee. 
A  general  meeting  of  the  committee  had  been  held  after  the  city 
council  had  directed  the  redistrict  ing  of  the  city,  in  which  it  was 
resolved,  the  chairman  not  dissenting,  that  representatives  could 
not  be  selected  to  fill  the  331  new  precincts  until  an  election  was 
held  in  September,  1912.     Thereafter,  and  in  spite  of  this  conclu- 


TRUTH  ABOUT  THOSE  DELEGATES.  171 

sion,  the  chairman  assumed  the  right  by  his  appointment  to  add 
to  the  existing  committee  131  precinct  committeemen,  and  with 
these  voting  in  the  committee,  it  is  claimed  that  a  primary  was 
ordered.  There  was  so  much  confusion  in  the  meeting  that  this 
is  doubtful.  However,  the  fact  is  that  the  Taft  men  protested 
against  any  action  by  a  committee  so  constituted,  on  the  ground 
thai  the  chairman  had  no  authority  to  appoint  the  131  new 
committeemen.  They  refused  to  take  part  in  the  primary,  and 
so  did  the  La  Follette  men.  The  newspapers  reported  the  num- 
ber of  votes  in  the  primary  to  be  something  over  3000.  The 
Roosevelt  Committee  showed  by  affidavit  the  number  to  be  6000 
out  of  a  usual  total  Republican  vote  of  75,000.  The  action  of  the 
chairman  of  the  committee  in  attempting  to  add  131  precinct 
men  to  the  old  committee  was,  of  course,  beyond  his  power. 
The  resolution  authorizing  him  to  fill  vacancies  of  course  applied 
only  to  those  places  in  the  existing  committee  which  became 
vacant  after  they  had  been  filled,  and  clearly  did  not  apply  to 
131  new  precincts.  It  could  not  in  the  nature  of  things  apply 
to  a  change  from  the  old  system  to  a  complete  new  system  of 
precincts  created  by  the  City  Council,  because  if  they  were  to 
be  filled  the  entire  number  of  331  new  precincts  different  from 
the  old  must  be  filled.  One  system  could  not  be  made  into  the 
other  by  a  mere  additional  appointment  of  131  committeemen. 
No  lawyer  will  say  that  such  action  by  the  committee  thus  con- 
stituted was  legal.  Therefore  the  action  which  the  lawful  com- 
mittee of  250  took  in  electing  Taft  delegates,  who  made  a  ma- 
jority in  the  State  Convention,  was  the  only  one  which  could 
be  recognized  as  valid. 


Contested    District    Delegates. 

ALABAMA. 

Ninth  District. 

The  Ninth  Alabama  contest  turned  on  the  question  whether 
the  chairman  of  a  District  Committee  had  power  to  fill  va- 
cancies, whether  a  committeeman  who  had  sent  his  resignation 
to  take  effect  only  in  case  he  was  not  present,  being  present, 
should  be  prevented  from  acting  as  committeeman,  and,  third,  on 
the  identity  of  another  committeeman.  The  written  resolution 
under  which  the  right  of  the  chairman  to  appoint  to  vacancies 
was  claimed  showed  on  its  face  that  the  specific  authority  was 
written  in  in  different  handwriting  and  with  different  colored 
pencil  between  the  lines.  A  number  of  affidavits  were  filed  by 
committeemen  who  were  present  when  the  resolution  was  passed, 
to  show  that  the  resolution  contained  no  such  authority.  This 
gave  rise  to  a  question  of  fact  upon  which  a  very  large  ma- 
jority of  both  the  National  Committee  and  the  Committee  on 
Credentials  held  that  the  lead  pencil  insertion  was  a  forgery, 
that  the  chairman  did  not  have  the  authority  thereunder  to 
appoint  to  the  vacancies,  and,  therefore,  the  action  of  his  com- 
mittee was  not  valid.  This  made  it  necessary  to  reject  the  con- 
testants. The  committee  decided  the  two  other  issues  of  fact 
before  them  in  favor  of  the  Taft  contention,  although  the  first 
decision   was  conclusive. 


ARKANSAS. 

Fifth  District. 

Tn  the  Fifth  Arkansas  the  question  was  one  of  the  identity 
of  one  faction  or  the  other  as  the  Republican  Party.  This  con- 
vention followed  the  example  of  the  convention  of  1908  in  hold- 
ing that  what  was  known  as  the  Redding  faction  was  not  the 
Republican  Party,  that  it  was  a  defunct  organization,  and 
had  only  acquired  life  at  the  end  of  each  four  years  for  the 
purpose  of  using  it  in  the  National  Convention.  The  contestants 
were  therefore  rejected.  It  was  shown  that  the  other,  or  Taft, 
bad  been  in  active  existence  as  the  Republican  Party,  had  nom- 
inated a  local  ticket  and  had  run  a  candidate  for  Congress. 


172  TRUTH  ABOUT  THOSE  DELEGATES. 

CALIFORNIA. 

Fourth  District. 

The  Fourth  California  presented  this  question:  Under  the 
state  law,  the  delegation,  two  from  each  district,  was  elected  on 
a  general  ticket,  in  a  group  of  26.  Each  delegate  might  either 
express  his  presidential  preference  or  agree  to  vote  for  the 
presidential  candidate  receiving  the  highest  number  of  votes  in 
the  State.  In  the  Fourth  District  the  two  candidates  from  that 
district  on  the  Taft  ticket  expressed  a  preference  for  Taft,  but 
did  not  agree  to  vote  for  the  candidate  having  the  highest  state 
vote.  These  Taft  delegates  in  the  Fourth  District  received  a 
majority  of  200  more  than  the  Roosevelt  delegates  in  that  dis- 
trict. The  official  call  for  the  Republican  National  Convention, 
in  precisely  the  language  used  in  the  call  for  the  1008  and  many 
previous  conventions,  forbade  any  law  or  the  acceptance  of  any 
law  which  prevented  the  election  of  delegates  by  congressional 
districts.  In  other  words,  the  state  law  was  at  variance  with 
the  call  for  the  National  Convention.  The  state  law  was  in- 
voked to  enforce  the  state  unit  rule,  requiring  the  whole  20  del- 
egates to  be  voted  for  all  over  the  State,  assigning  two  to  each 
district  on  the  tickets  to  abide  the  state-wide  election,  while 
the  Republican  National  Convention  has  insisted  upon  the  unit 
of  the  district  since  1880.  That  has  been  the  party  law.  This 
convention  recognized  the  party  law  and  held  it  to  be  more 
binding  than  that  of  the  state  law,  and  allowed  the  two  del- 
egates who  had  received  in  the  Fourth  District  a  vote  larger 
than  their  two  opponents  assigned  to  that  district,  to  become 
delegates  in  the  convention.  This  was  clearly  lawful,  for  a  State 
has  no  power  to  limit  or  control  the  basis  of  representation  of 
a  voluntary  national  party  in  a  National  Convention.  The 
fact  that  President  Taft,  by  telegram,  approved  all  of  the  twenty- 
six  delegates  as  representing  him  is  said  to  be  an  estoppel 
against  his  claiming  the  election  of  two  of  those  delegates  in 
the  Fourth  District.  What  is  there  inconsistent  in  his  approv- 
ing the  candidacy  of  all  his  delegates  and  the  election  of  two 
of  them?  Why  should  he  be  thus  estopped  to  claim  that  part  of 
the  law  was  inoperative  because  in  conflict  with  the  call  for  the 
convention  ? 

INDIANA. 

Thirteenth  District, 

In  the  Thirteenth  Indiana  there  was  no  question  about  the 
victory  of  the  Taft  men,  because  the  temporary  chairman  rep- 
resenting the  Taft  side  was  conceded  to  have  been  elected  by  one- 
half  a  vote  more  than  the  Roosevelt  candidate.  This  one-half 
vote  extended  through  the  riotous  proceedings,  and.  although  it 
was  not  as  wide  as  a  barn  door,  it  was  enough.  The  chairman 
put  the  question  as  to  electing  the  Taft  delegates,  and,  after  con- 
tinuous objection,  lasting  three  hours,  declared  the  vote  carried. 
The  Roosevelt  men  thus  prevented  a   roll   call  and  then  bolted. 

KENTUCKY. 

Seventh  District. 

In  the  Seventh  Kentucky  District  the  total  vote  of  the  con- 
vention was  145.  There  were  contests  from  four  counties  in- 
volving 95  votes.  According  to  the  rules  of  the  party  in  Kentucky. 
where  two  sets  of  credentials  are  presented,  those  delegates 
whose  credentials  are  approved  by  the  county  chairman  are  en- 
titled to  participate  in  the  temporary  organization.  On  the  tem- 
porary roll  the  Taft  chairman  was  elected  by  98  votes  and  47 
votes  were  cast  for  the  Roosevelt  candidate.  The  Committee  on 
Credentials  was  then  appointed,  consisting  of  one  member  named 
by  each  county  delegation.  The  majority  report  of  the  commit- 
tee was  adopted  unanimously  by  the  convention,  no  delegation 
whose  seats  were  contested  being  permitted  to  vote  on  its  own 
case.  As  soon  as  the  majority  report  of  the  Credentials  Com 
mittee  had  been  adopted  the  Roosevelt  adherents  bolted.  There 
was  not  the  slightest  reason  for  sustaining  the  contest  for  Roose- 
velt delegates. 


TRUTH  ABOUT  THOSE  DELEGATES.  173 

KENTUCKY. 

Eighth   Disirict. 

The  Eighth  Kentucky  District  was  composed  of  ten  counties, 
having  1(),'J  votes,  of  which  82  were  necessary  to  a  choice.  There 
was  no  contest  in  five  of  the  counties,  and  although  the  Roose- 
velt men  claimed  that  there  was  one  in  Spencer  County,  no 
contest  was  presented  against  the  seating  of  the  regularly  elected 
Taft  delegates  from  that  county.  This  gave  the  Taft  delegates 
84  votes,  or  two  more  than  were  necessary  for  a  choice.  In 
other  words,  assuming  that  the  Roosevelt  men  were  entitled  to 
all  the  delegates  from  the  counties  in  which  they  filed  contests 
in  the  District  Convention,  there  remained  a  clear  majority  of 
uncontested  delegates  who  voted  for  the  Taft  delegates  to  Chicago. 

OKLAHOMA. 

Third  District. 

In  the  Third  Oklahoma  District  the  question  of  the  validity  of 
the  seats  of  the  delegates  turned  on  the  constitution  of  the  Con- 
gressional Committee,  which  was  made  up  of  twelve  Taft  men 
and  seven  Roosevelt  men.  The  chairman,  Cochran,  was  a  Roose- 
velt man,  and  attempted  to  prevent  the  majority  of  the  com- 
mittee from  taking  action.  The  chairman  was  removed,  and  an- 
other substituted,  and  thereupon  the  convention  was  duly  called 
to  order  on  the  temporary  roll  prepared  by  the  Congresional 
Committee,  which  was  made  the  permanent  roll,  and  the  two 
Taft  delegates  to  Chicago  were  duly  selected.  Every  county  in 
the  district  had  its  representation  and  vote  in  the  regular  con- 
vention, and  no  person  properly  accredited  as  a  delegate  was 
excluded  or  debarred  rrom  participating  in  its  proceedings. 
Cochran  and  his  followers  bolted  after  his  deposition.  Assuming 
that  all  the  committee  who  went  out  with  him  had  the  right 
to  act  on  the  committee,  it  left  the  committee  standing  twelve  for 
Taft  and  seven  for  Roosevelt,  so  it  was  simply  a  question  whether 
a  majority  of  the  committee  had  the  right  to  control  its  action 
or  a  minority.  The  bolting  convention  which  Cochran  held  was 
not  attended  by  a  majority  of  the  duly  elected  delegates  to  the 
convention.  It  did  not  have  the  credentials  from  the  various 
counties,  and  its  membership  was  largely  made  up  of  bystanders 
who  had  not  been  duly  accredited  by  any  county  in  the  district. 
Its  action  was  entirely  without  authority. 

TENNESSEE. 

Second  District. 

In  the  Second  Tennessee  District  there  were  59  delegates  un- 
contested out  of  a  possible  total  of  108  in  the  convention.  There 
were  49  contested.  The  Roosevelt  contestants  in  the  49  refused 
to  abide  the  decision  of  the  Committee  on  Credentials,  and 
withdrew,  leaving  59  uncontested  delegates.  These  59  delegates, 
part  of  whom  were  Roosevelt  men,  remained  in  the  convention, 
appointed  the  proper  committees,  settled  contests,  and  proceeded 
to  select  Taft  delegates.  There  can  be  no  question,  therefore, 
about  the  validity  of  their  title. 

TEXAS. 

First  District. 

The  only  remaining  districts  are  the  nine  districts  from  Texas. 
Of  these,  the  First  District  was  composed  of  eleven  counties, 
each  county  having  one  vote,  except  Cass  County,  which  had 
two.  The  Executive  Committee,  composed  of  one  representative 
from  each  county,  made  up  the  temporary  roll,  and  in  the  con- 
tests filed  from  two  counties  seated  both  delegates  with  one- 
half  vote  each.  The  convention  elected  the  fwo  Taft  delegates, 
giving  them  10*4  votes.  Each  county  was  represented  in  this 
vote.  A  minority  representing  1%  votes  bolted  the  regular  con- 
vention and  held  a  rump  meeting.  The  National  Committee  by 
unanimous  rote  decided  the  contest  in  favor  of  the  Taft  delegates, 


174  TRUTH  ABOUT  THOSE  DELEGATES. 

Second  District. 

In  the  Second  Texas  District  there  were  fourteen  counties. 
Two  counties  were  found  not  to  have  held  conventions  and  one 
county  to  have  no  delegate  present.  The  convention  was  then 
constituted  by  the  delegations  that  held  regular  credentials.  The 
report  of  the  Committee  on  Credentials  was  accepted  upon  roll 
call  and  then  the  representatives  of  five  counties  with  drew  from 
the  hall.  The  representatives  of  four  of  these  counties  held  a 
rump  convention.  The  regular  convention  remained  in  session 
several  hours,  appointed  the  usual  committees,  which  retired  and 
made  their  reports,  which  were  accepted,  and  elected  two  Taft 
delegates  to  the  National  Convention,  and  certified  their  elec- 
tion in  due  form  to  the  National  Committee,  which,  without 
division  being  asked  for,  held  them  properly  elected. 

Fourth  District. 

The  Fourth  Texas  District  consists  of  five  counties,  each  hav- 
ing one  vote  in  the  District  Convention  under  the  call.  One 
county,  Rains,  chose  an  uncontested  delegation,  and  that  One 
was  for  Taft.  The  other  four  counties  sent  contesting  delega- 
tions. The  contesting  delegations  appeared  before  the  Congres- 
sional Executive  Committee  to  present  their  claims,  but  the 
committee  arbitrarily  refused  to  hear  anybody.  Having  ex- 
hausted every  effort  to  secure  a  hearing,  the  four  contesting 
delegations,  together  with  the  only  uncontested  delegation  of  the 
convention,  withdrew  to  another  place  and  held  a  convention 
and  elected  Taft  delegates  to  the  Chicago  Convention.  The  Con- 
gressional Convention  which  elected  the  Taft  delegates  was  com- 
posed of  more  than  a  majority,  and,  indeed,  of  practically  all  the 
regularly  elected  delegates.  The  National  Committee  held  the 
title  of  the  Taft  delegates  to  their  seats  valid  by  viva  voce  vote, 
without  calling  for  a  division. 

Fifth  District. 

The  Fifth  District  of  Texas  is  composed  of  Dallas,  Ellis,  Hiss, 
Bosque  and  Rockwell  counties.  Dallas  County  cast  more  Re- 
publican votes  than  all  the  other  counties  of  the  district  put  to- 
gether. The  call  for  the  Congressional  Convention  allowed  each 
county  to  send  not  to  exceed  four  delegates,  but  made  no  refer- 
ence to  the  basis  of  representation  of  the  respective  counties  com- 
posing the  district.  There  was  a  contest  from  Dallas  County,  but 
the  Taft  delegates  were  seated.  Taft  delegates  were  seated  on 
the  temporary  roll  from  two  counties  and  Roosevelt  delegates  from 
the  three  counties,  and  the  representation  in  the  convention  was 
fixed  at  one  vote  for  each  county,  without  regard  to  the  number 
of  delegates  in  the  convention  or  the  number  of  Republican  votes 
cast  in  such  county.  A  minority  report  of  the  District  Committee 
was  presented;  protesting  against  the  ratio  of  representation 
adopted.  The  chairman'  of  the  convention  objected  to  the  pres- 
entation of  this  minority  report.  Failing  in  this,  he  abandoned 
the  platform  and  left  the  hall. 

The  convention  thereupon  elected  a  new  chairman  and  a  new 
sec-rotary,  appointed  a  Committee  on  Credentials,  which  recom- 
mended the  seating  of  the  Taft  delegates  from  Hill  County,  and 
the  adoption  of  the  minority  report  of  the  District  Committee  as 
to  the  basis- of  the  representation  in  the  convention.  Roth  of 
these  recommendations  were  adopted,  and  Taft  delegates  to  the 
National  Convention  were  thereupon  elected  by  a  vote  of  eight 
to  three.  The  Roosevelt  men  thereafter  retired  to  the  sooth  end 
of  Hie  liall.  where  they  organized  a  meeting,  at  which  it  was 
claimed  the  Roosevelt  delegates  to  the  National  Convention  were 
elected.  The  Republican  vote  for  the  district  for  1!)0S  was  as 
follows:  Dallas  County,  20(18 ;  Ellis,  5!)!;  1 1111.  -Ill;  T.os.pie.  266; 
Rockwall.  .'>S.  Roth  the  National  Committee  and  the  Committee 
on  Credentials  sustained  the  Taft  delegates. 

Seventh  District. 

The  Seventh  Congressional  District  of  Texas  is  composed  of 
tlie  following  counties:  Anderson,  Chambers,  (ialveston,  Houston. 
Liberty,  Polk,   San   Jacinto  and  Trinity.     Polk,   San  Jacinto  and 


TRUTH  ABOUT  THOSE  DELEGATES.  175 

Trinity  were  without  proper  party  organization.  In  Texas, 
county  chairmen  must  be  elected  by  the  voters  in  each  party.  No 
such  election  was  held  in  any  of  these  three  counties.  In  two 
of  them  Colonel  Lyon  assumed  to  appoint  chairmen,  which  be 
bad  no  right  to  do.  Lyon  himself  had  classed  these  three  coun- 
ties as  unorganized  and  without  party  organization. 

The  convention  met  in  Galveston.  The  Executive  Committee 
met  prior  to  the  meeting  of  the  convention  to  make  up  the  tem- 
porary roll  of  delegates.  The  Executive  Committee  had  before 
it 'the  question  of  having  the  three  unorganized  counties  repre- 
sented in  the  convention.  The  Executive  Committee  refused  to 
recognize  them.  When  this  action  was  taken  by  the  Executive 
Committee,  a  delegate  from  Houston  County,  and  the  alleged 
representatives  from  the  three  unorganized  counties  withdrew 
from  the  meeting  and  proceeded  to  organize  another  convention, 
and  upon  this  is  based  the  contest,  which  was  rejected  by  both 
committees,  the  National  Committee  and  the  Credentials  Com- 
mittee. 

Eighth  District. 

In  the  Eighth  Congressional  Convention  a  split  occurred  over 
the  majority  and  minority  reports  of  the  Executive  Committee 
as  to  the  temporary  roll.  The  Roosevelt  followers  controlled 
the  Executive  Committee,  but  did  not  have  a  majority  in  the 
convention  which  adopted  the  minority  report  and  gave  Taft 
5%  votes  and  Roosevelt  2y2  votes.  This  resulted  in  the  election 
of  the  Taft  delegates,  who  were  seated  by  both  the  National 
Committee  and  the  Credentials  Committee. 

Ninth  District. 

In  the  Ninth  District  the  District  Committee  was  called  by 
Mr.  Speaker,  a  member  of  the  committee,  and  not  by  the  chair- 
man. The  chairman  refused  to  convene  the  committee  because 
he  claimed  that  all  the  delegates  from  Texas  to  the  National 
Convention  must  be  elected  in  the  State  Convention ;  that  Colonel 
Lyon,  his  superior,  had  thus  directed  him.  The  District  Com- 
mittee was  called.  Seven  members  attended  the  meeting.  The 
District  Convention  was  called  on  the  15th  of  May.  Eleven 
counties  out  of  the  fifteen  responded  to  the  call  and  took  part 
in  the  convention,  which  elected  Taft  delegates.  Three  counties 
were  not  represented,  and  in  one  of  these  there  was  no  election. 
After  this  convention  had  been  called  the  chairman  of  the  Dis- 
trict Committee  changed  his  mind  and  called  a  meeting  of  the 
committee  for  April  17th.  This  committee  called  a  Congres- 
sional Convention  to  be  held  on  the  18th  of  May.  But  there 
was  no  publication  of  the  call,  which  had  to  be  thirty  days 
before  the  convention,  until  April  21st.  The  Taft  Convention 
seems,  therefore,  to  have  been  duly  and  regularly  convened,  while 
the  Roosevelt  Convention  was  not.  The  Taft  delegates  wore 
seated. 

Tenth  District. 

In  the  Tenth  District  the  decision  turned  largely  upon  the  bad 
faith  with  which  two  members  of  the  District  Committee  voted 
in  the  seating  of  delegates  and  upon  the  bad  faith  with  which 
one  of  them  used  the  proxy  intrusted  to  him.  The  Taft  del- 
egates in  this  case  bolted  and  left  the  hall,  and  immediately,  in 
the  same  building,  organized  another  convention,  wiiich  consisted 
of  delegates  from  six  counties.  Proceedings  were  regularly  held, 
a  permanent  organization  effected,  the  report  of  the  Committee 
on  Resolutions  adopted,  and  delegates  pledged  to  Taft  were 
elected.  The  undisputed  evidence  indicated  that  a  flagrant  at- 
tempt had  been  made  to  deprive  Taft  of  this  district,  to  which 
he  was  justly  entitled.  The  National  Committee  sustained  the 
title  of  the  Taft  delegates  and  alternates  by  a  practically  unani- 
mous vote. 

Fourteenth  District. 

In  the  Fourteenth  District  there  were  fifteen  counties  in  the 
district.  When  the  Executive  Committee  met  at  San  Antonio 
to  make  up  the  temporary  roll  there  were  ten  members  of  the 
committee  present   whose  right  to  act  was  undisputed,  of  whom 


176  TRUTH  ABOUT  THOSE  DELEGATES. 

six  were  for  Taft  and  four  for  Roosevelt.  There  were  four 
other  Roosevelt  men  present  whose  right  to  vote  was  disputed 
and  who  were  clearly  not  entitled  to  represent  their  county  at 
that  meeting.  One  of  them  held  the  proxy  of  the  committeeman 
from  Kendall  County,  who  was  dead,  and  the  proxies  from  three 
other  counties  were  held,  two  by  postmasters  and  one  by  an 
assistant  postmaster,  while  under  the  election  law  of  Texas  no 
one  who  holds  an  office  of  profit  or  trust  under  the  United  States 
shall  act  as  a  member  of  an  Executive  Committee  either  for 
the  State  or  for  any  district  or  county.  The  temporary  roll 
was  made  up  by  Taft  members,  having  a  clear  majority,  with- 
out permitting  these  men  to  act  under  their  proxies.  There 
was  a  contest  over  the  delegation  from  Bexar  County,  which 
contains  the  city  of  San  Antonio.  Full  consideration  was  given  to 
this  contest,  but  the  testimony  was  overwhelming  that  Taft 
carried  the  county  by  a  vote  of  four  or  five  to  one.  On  the 
proper  basis  the  total  vote  in  the  District  Convention  was  C>7, 
of  which  the  number  instructed  or  voting  for  Taft  was  37  Vz  ;  the 
number  voting  or  instructed  for  Roosevelt,  28%  ;  not  voting,  1. 
The  Taft  delegation  was,  therefore,  seated  at  Chicago. 


Conclusion. 

This  is  the  summary  of  the  contests  in  which  there  was  any 
shadow  of  substance.  It  is  not  essential,  in  order  to  make  Mr. 
Taft's  title  indisputable,  that  all  men  agree  on  every  one  of 
the  issues  raised.  They  were  decided  by  the  tribunals  which 
uniform  party  usage  had  made  the  proper  tribunals  to  decide 
such  contests.  If  those  tribunals  acted  in  good  faith  a  mis- 
taken judgment  would  not  invalidate  their  decision.  As  a  mat- 
ter of  fact,  an  examination  of  the  facts  shows  that  the  tribunals 
were  right  in  every  instance.  There  is  not  the  slightest  evi- 
dence that  they  were  moved  by  other  than  an  honest  desire  to 
reach  a  right  conclusion.  On  the  other  hand,  the  action  of  the 
Roosevelt  men  in  bringing  160  contests  that  they  promptly  aban- 
doned, strongly  tended  to  show  their  lack  of  good  faith  in  the 
prosecution  of  all  of  them.  Those  who  support  President  Taft 
can  well  afford  to  stand  on  the  record  in  these  cases,  and  to 
asseverate  without  fear  of  successful  contradiction  that  the  Taft 
delegates  whose  seats  were  contested  were  as  fairly  seated  in 
this  convention  as  in  any  in  the  history  of  the  party. 

The  Washington  Times,  a  daily  newspaper  owned  by  Frank 
Munsey,  an  ardent  Roosevelt  supporter,  in  its  issue  of  June  9, 
1012,  contains  the  following  statement,  showing  the  real  founda- 
tion of  most  of  the  Roosevelt  contests : 

"On  the  day  when  Roosevelt  formally  announced  that  he  was 
a  candidate  something  over  a  hundred  delegates  had  actually 
been  selected.  When  Senator  Dixon  took  charge  of  the  cam- 
paign a  tabulated  showing  of  delegates  selected  to  date  would 
have  looked  hopelessly  one-sided.  Moreover,  a  Dumber  of  South- 
ern States  had  called  their  conventions  for  early  dates,  and 
there  was  no  chance  to  develop  the  real  Roosevelt  strength  in 
the  great  Northern  States  till  later.  For  psychological  effect, 
:is  ;i  move  in  practical  politics  it  was  necessary  for  the  Roose- 
velt people  to  start  contests  on  those  early  Taft  selections,  in 
order  that  a  tabulation  of  delegate  strength  could  be  put  out 
that  would  show  Roosevelt  holding  a  good  hand.  In  the  game  a 
table  showing  Taft,  150;  Roosevelt.  11):  Contested.  1.  would  uot 
he  very  much  calculated  to  inspire  confidence,  whereas,  one  show- 
ing Taft,  23?  Roosevelt,  li);  contested.  127.  looked  very  different. 
That  is  the  whole  story  of  the  larger  number  of  Southern  con- 
tests that  were  started  early  in  the  game.  It  was  never  ex- 
pected that  they  would  he  taken  very  seriously.  They  served 
a  useful  purpose,  and  now  the  National  Committee  is  deciding 
them  in  favor  of  Taft  in  most  cases  without   real  division." 


The  only  null-trust  law  ou  the  Federal  Statute  book*  hears  tin* 
nnme  of  u  Kenuhllcan  senator.  The  luw  creatine  mi  I  nlerslale 
Commerce  Commission  Ik-jits  the  nnme  of  another  Republican 
senator,  and  all  the  law  is  betas  enforced  by  n  Reptrbllcaa  Presi- 
dent.—  Hon.   K.   Ij.  Hamilton,   in    Congress,    April    11,    UtOl. 


THE  JUDICIAL   RECALL. 


EXTRACTS    FROM    AN    ADDRESS    OF    PRESIDENT    TAFT    AT 
TOLEDO,    MARCH   9,    1912. 

"In  the  last  year  or  two  we  have  heard  much  of  radical  meth- 
ods of  changing  the  judiciary  system.  If  we  would  properly 
consider  these  proposals  and  stand  on  solid  and  safe  ground  we 
must  re-examine   the   fundamental  principles   of   stable   popular 

government. 

********* 

"It  was  long  ago  recognized  that  the  direct  action  of  a  tem- 
porary majority  of  the  existing  electorate  must  be  limited  by 
fundamental  law ;  that  is,  by  a  Constitution  intended  to  protect 
the  individual  and  the  minority  of  the  electorate  and  the  non- 
voting majority  of  the  people  against  the  unjust  or  arbitrary 
action  of  the  majority  of  the  electorate.  This  made  it  necessary 
to  introduce  into  the  Constitution  certain  declarations  as  to  the 
rights  of  the  individual  which  it  was  the  purpose  of  the  whole 
people  to  maintain  through  the  Government  against  the  aggres- 
sion of  any  temporary  majority  of  the  electorate,  and  to  provide 
in  the  same  instrument  certain  procedure  by  which  the  indi- 
vidual might  assert  and  vindicate  those  rights. 

"Then,  to  protect  against  the  momentary  impulse  of  a  tem- 
porary majority  of  the  electorate  to  change  the  fundamental 
law,  and  deprive  the  individual  or  the  voting  mkiority  or  the 
nonvoting  majority  of  inalienable  rights,  the  Constitution  pro- 
vided a  number  of  checks  and  balances  whereby  every  amend- 
ment to  the  Constitution  must  be  adopted  under  forms  and  with 
delays  that  are  intended  to  secure  much  deliberation  on  the 
part  of  the  electorate  in  adopting  such  amendments. 

"These  checks  and  balances,  as  has  been  pointed  out,  include 
the  division  of  the  Government  into  three  independent  branches 
— the  legislative,  executive  and  the  judiciary — and  the  provisions 
by  which  usurpation  by  one  of  the  functions  of  another  is  for- 
bidden. The  executive,  while  he  is  bound  to  act  in  behalf  of 
all  the  people  and  to  regard  their  rights,  is  properly  influenced 
by  that  discretionary  policy  which  he  was  elected  by  his  con- 
stituents to  carry  out.  In  that  sense,  he  represents  the  majority 
of  the  electorate.  So,  too,  the  legislative  members  elected  to 
uphold  certain  governmental  views  of  the  majority  will  properly 
favor  the  embodiment  of  such  views  in  valid  legislation. 

"But  the  judiciary  are  not  representative  in  any  such  sense, 
whether  appointed  or  elected.  The  moment  they  assume  their 
duties  they  must  enforce  the  law  as  they  find  it.  They  must 
not  only  interpret  and  enforce  valid  enactments  of  the  legisla- 
ture according  to  its  intention,  but  when  the  legislature  in  its 
enactments  has  transgressed  the  limitations  set  upon  its  power 
in  the  Constitution,  the  judicial  branch  of  the  Government  must 
enforce  the  fundamental  and  higher  law  by  annuling  ;  nl  de- 
claring invalid  the  offending  legislative  enactment.  Trei  the 
judges  are  to  decide  between  individuals  on  principles  of  right 
and  justice. 

"The  great  body  of  the  law  is  unwritten,  determined  by 
precedent  and  founded  on  eternal  principles  of  right  and  mo- 
rality. This,  the  courts  have  to  declare  and  enforce.  As  between 
the  individual  and  the  State,  as  between  the  majority  and  the 
minority,  as  between  the  powerful  and  the  we'k,  financially, 
socially,  politically,  courts  must  hold  an  even  hand  and  give 
judgment  without  fear  or  favor. 

*  *  *»*  *  *  *  *  * 

"In  the  remedy  by  judicial  recall  it  is  prop  sed  to  j  rovide  by 
law  that  whenever  a  judge  has  so  discharged  his  duties  as  to 
induee  a  certain  percentage   of  the  electorate    to   deem   it   wise 

177 


178  THE  JUDICIAL  RECALL. 

to  remove  him,  and  that  percentage  sign  a  petition  asking  his 
recall,  an  election  shall  take  place  in  which  the  incumbent  shall 
stand  against  other  candidates;  and  if  he  does  not  secure  a 
plurality  of  votes,  he  is  ipso  facto  removed. 

"I  have  pointed  out  that  under  our  form  of  government  and 
Constitution  many  of  the  issues  arising  before  our  courts  are  in 
effect  issues  between  the  State  and  the  individual,  between  the 
majority  and  the  minority — cases  in  which  the  popular  interest 
might  be  greatly  excited  to  secure  a  favorable  judgment.  By 
this  system  the  question  whether  the  judge  is  to  be  removed 
or  not  is  to  be  left  to  that  majority  that  may  be  greatly  aroused 
to  secure  from  him  a  judgment  favorable  to  them.  Could  a 
system  be  devised,  better  adapted  to  deprive  the  judiciary  of  that 
independence  without  which  the  liberty  and  other  rights  of  the 
individual  can  not  be  maintained  against  the  Government  and 
the   majority? 

"But  it  is  said  we  may  have  corrupt  judges.  How  are  we 
going  to  get  rid  of  them?  They  can  be  impeached  under  our 
present  system. 

"Let  us  examine  the  other  method  proposed  for  the  reform  of 
the  judiciary.  That  is,  a  recall  of  decisions.  By  this  method, 
when  a  supreme  court  has  found  a  law,  intended  to  secure 
public  benefit,  to  be  invalid  because  it  infringes  some  consti- 
tutional limitation,  the  decision  is  to  be  submitted  to  a  vote 
of  the  qualified  electors,  and  if  a  majority  of  them  differ  with 
the  court  and  reverse  the  decision,  the  law  is  to  be  regarded  and 
enforced  as  valid  and  constitutional. 
."  #  *  *  *  *  *  *  *  * 

"What  the  court  decides  is  that  the  enacted  law  violates  the 
fundamental  law  and  is  beyond  the  power  of  the  legislature  to 
enact.  But  when  this  issue  is  presented  to  the  electorate,  what 
will  be  the  question  uppermost  in  the  minds  of  most  of  them 
and  forced  upon  them  by  the  advocates  of  the  law?  Will  it  not 
necessarily  be  whether  the  law  is  on  its  merits  a  good  law  rather 
than  whether  it  conflicts  with  the  Constitution 

"The  interpretation  of  the  Constitution  and  the  operation  of 
a  law  to  violate  some  limitation  of  that  instrument  are  often 
nice  questions  to  be  settled  by  judicial  reasoning  and  farsighted 
experience,  which  are  not  to  be  expected  of  the  electorate,  or 
welcomed  by  it.  If  the  issue  is  transferred  to  them  the  simple 
question  will  be  of  the  approval  or  disapproval  of  the  law. 
What  this  recall  of  decisions  will  then  amount  to,  if  applied  to 
constitutional  questions,  is  that  there  will  be  a  suspension  of 
the  Constitution  to  enable  a  temporary  majority  of  the  elec- 
torate to  enforce  a  popular  but  invalid  act. 

********* 

"The  main  argument  used  to  sustain  such  a  popular  review 
of  judicial  decisions  is  that  if  the  people  are  competent  to  estab- 
lish a  Constitution  they  are  competent  to  interpret  it,  and  that 
this  recall  of  decisions  is  nothing  but  the  exercise  of  the  power 
of  interpretation.  This  is  clearly  a  fallacious  argument.  The 
approval  of  general  principles  in  a  Constitution,  on  the  one 
hand,  and  the  interpretation  of  a  statute  and  consideration  of 
its  probable  operation  in  a  particular  case  and  its  possible  in- 
fringement of  a  general  principle,  on  the  other  hand,  are  very 
different  things. 

"The  one  is  simple,  the  latter  complex;  and  the  latter  when 
submitted  to  a  popular  vote,  as  already  pointed  out,  is  much 
more  likely  to  be  turned  into  an  issue  of  general  approval  or 
disapproval  of  the  act  on  its  merits  for  the  special  purpose 
of  its  enactment  than  upon  its  violation  of  the  Constitution. 
Moreover,  a  popular  majority  does  not  adopt  a  Constitution, 
or  any  principle  of  it,  or  amend  its  terms,  until  after  it  has  been 
adopted  by  a  constitutional  convention  or  a  legislature,  and  the 
final  adoption  is,  and  ought  to  be,  surrounded  with  such  checks 
and  delays  as  to  secure  deliberation.  In  other  words,  the  course 
of  procedure  in  the  adoption  of  Constitution  or  amendment  is 
very  different  from  w7hat  the  proposed  vote  of  a  majority  on 
constitutional  interpretation  would  be." 


THE  JUDICIAL  RECALL.  179 

EXTRACTS   PROM   REMARKS    OF   HON.   ELIHU   ROOT   BEFORE 
NEW   YORK    STATE    BAR   ASSOCIATION. 

The  respect  for  the  decisions  of  our  courts  which  has  sus- 
tained, the  judicial  branch  of  our  Government  has  been  based 
upon  the  idea  that  judicial  decisions  are  something-  quite  dis- 
tinct and  different  from  the  expression  of  political  opinions  or 
the  advocacy  of  economic  or  social  theories.  Devotion  to  the 
reign  of  law.  with  its  prescribed  universal  rules,  as  distin- 
guished from  the  reign  of  men,  with  their  changing  opinions, 
desires,  and  impulses,  has  inclined  us  always  to  ascribe  a  certain 
sanctity  to  the  judicial  office.  To  change  this  view  and  con- 
sider the  decisions  of  our  courts  in  the  same  way  and  upon  the 
same  presumptions  as  in  the  case  of  political  opinions  means 
that  the  authority  of  the  courts  will  inevitably  decline,  that 
the  independence  of  the  judicial  branch  will  cease,  that  judicial 
decision  must  interpret  the  law  always  to  suit  the  majority 
of  the  moment,  and  the  recall  will  be  the  natural  and  log'ical 
expression  of  the  relation  to  be  assumed  between  the  people  and 
the  courts. 

*  *     .         *  *  *  *  *  *  * 

It  is  not  the  duty  of  our  courts  to  be  leaders  in  reform,  or 
to  espouse  or  to  enforce  economic  social  theories,  or,  except  in 
very  narrow  limits,  to  readjust  our  laws  to  new  social  condi- 
tions. The  judge  is  always  confined  within  the  narrow  limits  of 
reasonable  interpretation.  It  is  not  his  function  or  within  his 
power  to  enlarge  or  improve  or  change  the  law.  His  duty  is  to 
maintain  it,  to  enforce  it,  whether  it  be  good  or  bad,  wise  or 
foolish,  accordant  with  sound  or  unsound  economic  policy.  If 
the  law,  as  declared  by  a  court  of  last  resort,  bars  the  way  of 
some  popular  movement,  the  true  remedy  is  not  to  threaten 
the  court  with  extinction  or  its  members  with  punishment  un- 
less they  will  decide  against  their  convictions,  but  to  set  the 
law  making  body  in  operation  to  change  the  law.  When  a  com- 
munity is  not  satisfied  with  a  law  as  it  is  declared  by  the  court 
to  be,  it  is  not  a  desirable  thing  to  coerce  or  reconstruct  a  court 
to  force  it  to  say  that  a  law  is  what  it  is  not.  The  right  way 
is  to  make  the  law  what  the  community  wishes  it  to  be.  This  is 
not  difficult,  for  when  a  majority  of  the  people  wish  a  law  to 
be  changed  it  will  be  done.  Proposals,  in  whatever  form,  to 
subordinate  the  decisions  of  the  court  to  the  decision  of  a 
majority  of  voters,  whether  it  be  by  punishing  the  judges  for 
an  unsatisfactory  decision  through  removing  them  from  office  or 
by  reviewing  their  decision  at  the  polls,  instead  of  reviewing  and 
revising  the  law  upon  which  the  decision  is  founded,  proceed 
upon  a  failure  to  realize  that  this  method  involves  an  abandon- 
ment of  the  most  essential  feature  of  our  system  of  constitu- 
tional government. 

********* 

A  sovereign  people  which  declares  that  all  men  have  certain 
inalienable  rights  and  imposes  upon  itself  the  great  impersonal 
rules  of  conduct  deemed  necessary  for  the  preservation  of  those 
rights,  and  at  the  same  time  declares  that  it  will  disregard  those 
rules  whenever  in  any  particular  case  it  is  the  wish  of  the 
majority  of  its  voters  to  do  so,  establishes  as  complete  a  con- 
tradiction to  the  fundamental  principles  of  our  Government 
as  it  is  possible  to  conceive.  It  abandons  absolutely  the 
conception  of  a  justice  which  is  above  majorities,  of  a  right 
in  the  weak  which  the  strong  are  bound  to  respect.  It 
denies  the  vital  truth  taught  by  religion  and  realized  in  the 
hard  experience  of  mankind,  that  human  nature  needs  to 
distrust  its  own  impulses  and  passions  and  to  establish 
for  its  own  control  the  restraining  and  guiding  influence  of 
declared  principles  of  action.  If  we  yield  to  the  impatience 
which  would  destroy  the  system  tnat  alone  makes  effective  the 
great  impersonal  rules  and  preserves  our  constitutional  govern- 
ment, rather  than  endure  the  temporary  inconvenience  of  pur- 
suing true  methods  of  changing  the  laws,  we  shall  not  be  re- 
forming,    but     we     shall    be    exhibiting    the    weakness    which 


180  THE  JUDICIAL  RECALL. 

thoughtful  friends  of  free  government  the  world  over  have  al- 
waj's  feared  the  most — the  lack  of  that  self-control  which  enables 
great  bodies  of  men  to  abide  the  slow  processes  of  orderly  gov- 
ernment rather  than  breaks  down  the  barriers  of  order  when 
they  obstruct  the  impulse  of  the  moment.  •  *  * 

The  recall  of  judges  strikes  at  the  very  .neart  of  the  funda- 
mental and  essential  characteristic  of  our  system  of  government. 
It  nullifies  it.  It  sets  it  at  naught.  It  casts  to  the  winds  that 
protection  of  justice  that  our  fathers  established  and  that  has 
made  us,  with  all  our  power,  a  just  and  orderly  people.  For 
when  we  say  to  the  judge  upon  the  bench,  "If  you  maintain  the 
abstract  rule  of  justice  against  the  wish  of  the  people  at  the 
moment,  you  shall  be  turned  out  of  office  in  ignominy,"  we 
nullify  the  rule  of  justice  and  establish  the  rule  of  passion, 
prejudice,  and  the  momentary  demand  of  the  excited  mob.  This 
is  not  progress.     It  is  not  reform.     It  is  degeneracy. 


EXTRACTS    FROM    AN    ADDRESS    RY    DR.    NICHOLAS    MURRAY 
BUTLER,    PRESIDENT    OF    COLUMBIA  UNIVERSITY 

The  principle  of  the  recall  when  applied  to  the  judiciary  is 
much  more  than  a  piece  of  stupid  folly.  It  is  an  outrage  of  the 
first  magnitude !  It  is  said :  "Are  not  the  judges  the  servants  of 
the  people?  Do  not  the  people  choose  them  directly  or  indirect- 
ly, and  should  not  the  people  be  able  to  terminate  their  services 
at  will?"  To  these  questions  I  answer  flatly,  No !  The  judges 
stand  in  a  wholly  different  relation  to  the  people  from  execu- 
tive and  legislative  officials.  The  judges  are  primarily  the  ser- 
vants not  of  the  people,  but  of  the  law.  It  is  their  duty  to  in- 
terpret the  law  as  it  is,  and  to  hold  the  law-making  bodies  to 
their  constitutional  limitations,  not  to  express  their  own  per- 
sonal opinions  on  matters  of  public  policy.  It  is  true  that  the 
people  make  the  law,  but  they  do  not  make  it  all  at  once.  Our 
system  of  common  law  has  come  down  to  us  from  ancient  days, 
slowly  broadening  from  precedent  to  precedent.  It  is  not  a  dead 
or  a  fixed  thing.  It  is  capable  of  movement,  of  iixc,  and  of 
adaptation  to  changing  conditions.  But  it  must  be  changed  and 
adapted  by  reasonable  and  legal  means  and  methods  and  not 
by  shouting  or  by  tumult.  It  was  no  less  a  person  than  Daniel 
Webster  who  said  "that  our  American  mode  of  government  does 
not  draw  any  power  from  tumultuous  assemblages."  This  is 
true  whether  the  tumultuous  assemblage  shouts  and  cries  aloud 
on  a  sand  lot,  or  whether  the  tumultuous  assemblage  goes 
through  the  form  of  voting  at  the  polls. 

Moreover,  we  know  something  about  what  happens  when 
judges  are  dependent  upon  the  power  that  creates  them.  The 
history  of  England  tells  a  plain  story  of  the  tyranny  and  injus- 
tice which  grow  out  of  a  judiciary  that  is  made  representative 
not  of  the  law  but  of  the  Crown.  In  the  same  way,  if  the  recall 
of  the  judir"ctry  should  be  established  in  this  country,  it  would 
not  be  long  before  our  history  would  tell  the  story  of  the 
tyranny  and  injustice  that  usually  follow  upon  a  judiciary  made 
immediately  dependent  upon  a  voting  population.  If  great 
causes,  civil  and  criminal,  are  to  be  decided  in  accordance  with 
established  principles  of  law  and  equity  and  upon  carefully 
tested  evidence,  they  must  be  decided  under  the  guidance  of  a 
fearless  and  independent  judiciary.  To  make  the  actions  or 
the  words  of  a  judge  the  subject  matter  of  popular  revision  at 
the  polls  with  a  view  to  displacing  a  judicial  officer  because  some 
act  or  word  is  not  at  the  moment  popular,  is  the  most  monstrous 
perversion  of  republican  institutions  and  of  the  principles  of  true 
democracy  that  has  yet  been  proposed  anywhere  or  by  any- 
body. *  *  * 

To  make  it  possible  to  displace  public  officials  before  the  ex- 
piry of  the  term  for  which  they  are  chosen  is  to  deprive  th«m 
of  individual  responsibility  and  dignity  and  to  make  them  mere 
tools  of  passing  opinion.  It  is  not  difficult  to  see  what  would 
have  happened  had  the  principle  of  the  recall  prevailed  through- 
out  American   history.     We   Americans   are   singularly   liable   to 


THE  JUDICIAL  RECALL.  181 

communicable  political  diseases,  and  one  wave  of  emotion  after 
another  sweeps  over  us  with  amazing-  celerity.  George  Wash- 
ington would  have  been  recalled  at  the  time  of  the  Genet  epi- 
sode ;  James  Madison  might  have  been  recalled  during  the  agita- 
tion which  led  to  the  War  of  1812  with  England;  Abraham  Lin- 
coln would  almost  certainly  have  been  recalled  in  the  dark  days 
of  1862  and  1863  ;  Grover  Cleveland  would  have  been  recalled  by 
overwhelming  vote  in  the  summer  ox  1893,  when  he  was  making 
his  fight  for  a  sound  financial  policy  and  system.  Yet,  when 
we  get  far  enough  away  from  the  public  deeds  of  these  strong 
men  we  see  that  the  particular  things  which  at  the  time  most 
excited  the  animosity  and  aroused  the  passions  of  large  numbers 
of  people  were  the  very  things  that  made  them  immortal  in 
American  history.  It  is  not  because  they  defied  public  opinion 
that  they  were  great ;  it  is  because  they  understood  real  public 
opinion  better  than  did  the  untamed  passion  of  the  moment, 
'iney  saw  far  more  clearly  than  did  the  crowd  what  was  really 
at  stake,  and  it  was  their  responsibility  to  reflect,  to  plan,  and 
to  act  so  that  the  honor  and  highest  interests  of  the  Nation 
would  be  preserved.  To-day  these  men  are  with  the  highest  on 
the  list  of  our  American  heroes ;  yet  every  one  of  them  might 
have  been  dashed  from  his  high  place  if  the  passions  of  the  mo- 
ment could  have  gotten  at  them,  when  those  passions  were  at 
their  height. 


EXTRACTS     FROM     AN     ADDRESS  .  BY     WENDELL     PHILLIPS 

STAFFORD,    ASSOCIATE    JUSTICE    OF    THE    SUPREME 

COURT    OF    THE    DISTRICT   OF    COLUMBIA. 

We  have  built  our  institutions  on  the  proposition  that  the 
people  have  the  right  to  rule.  Their  will  is  made  known  through 
the  suffrage.  And  when  opinions  differ,  as  they  usually  do,  the 
majority  must  govern.  But  that  is  not  the  whole  of  the  propo- 
sition. If  it  were,  there  would  be  no  safeguard  whatever  for 
the  rights  of  the  minority.  The  majority  might  appropriate 
tneir  property.  It  might  reduce  them  to  slavery.  It  might 
even  take  away  their  lives.  The  proposition  takes  for  granted, 
then,  certain  guaranties  for  the  protection  of  the  minority.  And 
what  are  these?  They  are  those  elementary  rights  which  no  ma- 
jority, however  large,  may  ever  violate.  They  .aave  been  recog- 
nized in  constitutions  and  bills  of  rights,  but  they  were  not 
created  by  them.  They  inhere  in  free  government  itself,  for 
human  freedom  is  impassible  without  them.  Among  these  rights 
there  is  none  more  important  than  this,  that  no  citizen  shall  be 
deprived  of  his  liberty  or  property  except  by  the  judgment  of 
the  law,  and  after  a  trial  before  an  independent  and  impartial 
tribunal.  We  have  now  come  to  the  keystone  of  the  arch.  It 
is  this :  The  majority  of  the  legal  voters  can  not  constitute  it- 
self this  tribunal.  If  it  can,  it  still  holds  the  property  and  lives 
of  the  minority  in  its  hands,  subject  to  its  mere  will  and  pleas- 
ure, for  there  is  no  one  who  can  call  it  to  account. 

The  cases  that  may  come  before  the  tribunal  are  of  two 
classes.  First,  those  between  individuals  merely.  Second,  those 
in  which  one  of  the  parties  is,  in  fact,  if  not  in  name,  the  peo- 
ple themselves,  or  the  popular  majority.  By  far  the  most  im- 
portant and  most  trying  cases  will  be  those  of  the  second  class, 
in  which  it  is  contended  that  some  fundamental  right  of  the  in- 
dividual or  the  minority  is  being  violated.  The  violation  will  be 
attempted  under  the  form  of  law;  and  thus  the  real  party  upon 
one  side  is  the  people,  or  tne  popular  majority,  whose  will  has 
here  found  expression  in  the  form  of  l*aw.  In  such  cases  how  is 
the  independence  and  impartiality  of  the  tribunal  to  be  se- 
cured? How  except  by  removing  it  as  far  as  possible  from  dic- 
tation by  either  party?"  Let  it  be  remembered  that  the  tribunal, 
the  court,  has  been  created  and  its  members  chosen  by  one  of 
the  parties  to  the  controversy,  namely,  the  people.  Clearly, 
tnen,  the  only  security  the  other  party  can  have  is  this :  That  the 
tribunal,  once  it  is  created  and  its  members  chosen,  shall  be 
permitted  to  decide  without  further  interference.     If  it  is  to  be 


182  THE  JUDICIAL  RECALL. 

checked  and  overawed  by  one  of  the  parties ;  if,  the  moment  it 
decides  the  case  against  that  party,  its  power  is  to  be  taken 
from  it  and  bestowed  upon  others,  then  it  is  the  party  that  de- 
cides the  case,  not  the  tribunal. 

The  argument  for  the  recall  assumes  that  judges  are  only 
agents  ME  the  majority,  and  easily  reaches  the  conclusion  that, 
when  the  agent  fails  to  satisfy  his  principal  he  may  rightly  be 
recalled.  The  fallacy  in  the  argument  is  in  the  assumption  that 
the  judge  is  an  agent.  He  is  not  an  agent  in  anj'  proper  sense  of 
that  word.  He  is  not  the  agent  of  either  party  to  a  cause,  tte 
is  not  even  the  agent  of  both  parties.  If  nis  duty  were  to  trade 
and  compromise  between  them,  he  might  be  consiaered  the  agent 
of  both.  But  that  is  not  his  duty.  His  duty  is  to  decide.  It 
is  not  for  him  to  please,  nor  to  seek  to  please,  either  party.  It 
is  for  him  to  decide  the  question  between  them  as  law  and  jus- 
tice requires. 

But  some  one  will  say:  "The  Constitution  witn  its  guaranties 
was  adopted  by  the  popular  majority.  Can  you  not  trust  it  to 
abide  by  the  work  of  its  own  hands?"  Sir,  I  believe  in  the  peo- 
ple, but  I  should  not  wish  to  see  even  the  Bill  of  Rights  sub- 
jected to  the  chances  of  every  popular  election.  The  making  of 
a  constitution  is  a  work  of  momentous  import.  Statutes  stand 
for  what  the  people  think  from  year  to  year.  Constitutions 
stand    for    what    they    think    from    generation    to     generation. 

If  judicial  opinions  are  to  be  reviewed  at  popular  elections, 
why  should  not  judges  be  instructed  beforehand  how  to  decide 
questions  that  are  certain  t©  arise?  They  would  be  saved  the 
possibility  of  making  a  mistake.  If  that  is  not  to  be  done  the 
greatest  jurist  will  be  the  one  who  shows  himseif  most  expert 
and  nimble  in  keeping  on  the  side  of  the  majority. 

When  the  King  asked  Lord  Coke  how  he  would  decide  a  cer- 
tain question  if  it  came  before  him  he  replied,  "When  that  case 
arises  I  will  decide  it  as  shall  befit  a  judge."  History  has 
recorded  the  answer  with  a  proud  smile.  When  democracy  asks 
that  question  of  her  judges  shall  they  answer  with  less  dignity 
ana  self-respect  than  the  chief  justice  of  the  Stuarts?  When 
Prince  Hal  struck  the  lord  chief  justice  on  the  bench  and  went 
to  jail  for  it,  the  King  shed  happy  tears  that  he  had  a  judge 
who  dared  administer  the  law  even  to  the  heir  apparent,  and 
that  he  had  a  son  who  in  his  sober  second  thought  accepted  the 
judgment  of  tne  law.  Has  free  America  in  the  twentieth  cen- 
tury less  reverence  for  law  than  the  House  of  Lancaster  had  500 
years  ago? 


EXTRACT     FROM     SPEECH     OP     HON.     CHARLES     NAGEL,     AT 
INDIANAPOLIS,   IND.,  JULY,   1912. 

The  recall,  I  venture  to  predict,  if  adopted  will  prove  a 
disappointment  throughout.  It  will  not  serve  to  raise  the 
standard  of  public  life;  it  will  not  serve  to  improve  the 
character  of  officials,  but,  on  the  contrary,  it  will  make 
trimmers  of  men  who  accept  office,  if  they  are  not  that  when 
they  accept  office,  and  it  will  deter  men  of  independence  and 
capacity,  who  are  not  seeking  place,  from  accepting  positions 
of  trust  which  are  offered  with  the  expression  of  distrust. 

But,  conceding  that  any  of  these  ideas  may  find  application 
in  local  conditions,  conceding  that  every  State  has  the  right 
to  accept  them,  and  that  we  may  soon  have  the  benefit  of 
actual  experience,  how  will  these  advocates  apply  their  ideas 
to  the  activities  of  the  National  Government?  *  *  *  Is 
it  possible  that,  not  content  with  the  present  agitation  and 
disturbance  which  constitute  a  necessary  price  for  the  enjoy- 
ment of  our  representative  system,  opportunity  for  turmoil, 
indecision,  and  unrest  shall  be  multiplied?  Is  it  possible  that 
these  advocates  contemplate  the  recall  of  Federal  officials? 
Is  it  to  be  applied  to  Congressmen  in  their  respective  districts? 
Is  it  to  be  applied  to  Senators,  and  is  it  to  be  applied  to  the 
President? 

If  such  a  rule  is  to  embrace  even  judges  of  the  courts, 
how  is  it  to  be  exercised  in  the  national  system?     Are   the 


THE  JUDICIAL  RECALL.  183 

people  of  each  district  of  a  United  States  court,  or  in  each 
circuit  of  a  court  of  appeals,  to  pass  upon  the  right  of  a 
judge  appointed  by  the  General  Government  to  continue  in 
his  court?  Are  the  people  of  such  a  district  or  circuit  to 
have  the  right  in  every  instance  to  pass  upon  the  decision 
announced  by  the  judge  of  a  court  of  that  district  or  circuit? 
If  the  people  of  one  circuit  have  reversed  the  court  of  that 
jurisdiction,  is  the  rule  to  be  good  for  that  circuit  only;  or 
is  it  to  be  accepted  as  a  precedent  for  people  of  other  circuits 
who  may  disagree?  And  if  the  idea  of  precedent  is  to  be 
abolished,  is  it  true  that  these  advocates  propose  to  have  as 
many  popular  opinions  of  the  law  as  we  have  districts  and 
circuits  in  the  United  States?  To  pursue  the  destruction  of 
precedent  and  well-ordered  adjudication  still  further,  is  it 
proposed  that  each  decision  shall  stand  for  its  case  alone, 
in  order  that  the  people  of  the  same  circuit  may  have  the 
right  to  determine  each  case  as  it  arises,  establishing  the 
Constitution  for  one  controversy  and  disestablishing  it  for 
another? 

The  advocacy  of  such  a  system  suggests  chaos  in  decisions, 
irresponsibility  in  the  courts,  and,  worse  than  all,  the  power 
of  an  impatient  majority  to  deny  every  right  which  well- 
ordered  institutions  guarantee  to  the  minority.  The  most 
significant  feature  of  this  modern  agitation,  this  new  nation- 
alism, is  that  it  is  not  national  at  all.  In  fact,  the  initiative, 
referendum  and  recall  are  advocated  by  men  who  are  ambi- 
tious for  national  office  and  generally  are  avoided  by  men 
who  have  to  do  with  local  affairs.  Each  is  busy  making 
promises  to  which  he  cannot  be  successfully  held. 

Is  there  a  single  measure  promised  in  the  last  platform,  is 
there  a  single  measure  suggested  by  developments,  that  can 
and  would  not  be  enacted  under  our  time-honored  system 
so  soon  as  the  people  have  reached  anything  approaching  a 
mature  conviction  as  to  form  and  substance;  and  to  accom- 
plish such  a  result  are  we  as  a  people  not  better  qualified 
to  select  men  than  we  are  to  formulate  measures? 

It  is  insisted  that  these  drastic  remedies  are  to  be  used 
only  in  certain  cases,  but  it  is  undeniable  that  their  trend 
leads  to  but  one  result.  It  means,  in  the  language  of  one 
of  the  governors,  that  what  is  right  is  constitutional;  it 
means  that  the  people  are  to  throw  off  all  self-restraint,  and 
that  as  a  people  we  are  to  abandon  the  highest  test  which 
an  individual  man  can  impose  upon  himself.  This  means 
that  the  Constitution,  to  all  intents  and  purposes,  when  its 
guaranties  are  most  needed,  is  abolished.  Finally,  it  means 
that  the  determination  of  what  is  right,  and  therefore  what 
is  constitutional,  must  be  left  to  the  author  of  the  nostrum 
itself.  It  means  one-man  power,  as  pure  democracy  always 
has  meant  and  always  will  mean.  It  is  not  progressive,  but 
reactionary;  for  by  its  teaching  every  people  that  have  ever 
experimented  with  these  doctrines  have  gone  to  their  destruc- 
tion. 


The  safety  and  interest  of  the  people  require  that  they  should 
promote  such  manufactures  as  tend  to  render  them  independent 
of  others. — Washington. 

Our  appeal  is  not  to  a  false  philosophy  or  vain  theories,  hut 
to  the  masses  of  the  American  people,  the  plain,  practical  people 
whom  Lincoln  loved  and  trusted  and  whom  the  Republican  Party 
has  always  faithfully  striven  to  serve. — Maj.  Mclvinley  to  Notifi- 
cation   Committee,   1896. 

Remembering  those  Republican  promises  and  their  fulfillment 
in  the  years  since,  calling  to  mind  the  unfulfilled  Democratic 
promises  and  the  bitter  years  of  1893*1896,  what  will  you  gain  by 
voting  the  Democratic  ticket. — Representative  Chas.  Dick,  of  Ohio, 
in   Congress,  January  5,  1904. 

The  ilifficulty  with  the  Democratic  Party  and  the  reason  why  the 
American  people  thus  far  have  manifested  their  distrust  of  it  is 
because  it  has  no  policy  which  the  country  enu  depend  upon.  Its 
whole  stock  in  trade  is  that  of  irresponsible  criticism  and  obstruc- 
tion, bnt  when  charged  with  the  responsibility  for  doing  anything 
It  utterly  fails. — Hon.  Win.  H.  Taft,  at  Greensboro,  N.  C. 


CURRENCY. 


The  Republican  Party  has  always  stood  for  a  sound  currency 
and  for  safe  banking  methods.  It  is  responsible  for  the  Na- 
tional Banking  System;  for  limiting  the  issue  of  greenbacks; 
for  the  resumption  of  specie  payments ;  and  for  the  establish- 
ment of  the  gold  standard.  It  is  committed  to  the  progressive 
development  of  our  banking  and  currency  system. 

The  need  of  further  revision  is  generally  admitteu.  Legis- 
lation to  meet  the  requirements  of  current  conditions  mast 
be  enacted.  Measures  which  will  prevent  the  recurrence  of 
money  panics  and  financial  disturbances,  and  which  will  pro- 
mote the  prosperity  of  business  and  the  welfare  of  labor  by  the 
production  of  constant  employment,  better  currency  facilities 
for  the  movement  of  crops  in  the  West  and  South,  the  estab- 
lishment of  rural  credit  banks  for  the  aid  of  the  farmer,  bank- 
ing arrangements  under  American  auspices  for  the  encourage- 
ment and  better  conduct  of  American  trade,  are  some  of  the 
needs  that  must  be  met. 

Methods  proposed  for  the  attainment  of  these  ends  include  the 
development  of  co-operation  among  the  banks ;  the  establish- 
ment of  a  national  organization  of  banks  with  clearly  defined 
and  limited  functions  along  the  lines  of  our  clearing  house 
experience ;  making  the  volume  of  note  issues  more  responsive 
to  and  dependent  upon  the  business  needs  of  the  country ;  by 
removing  banking  reserves  from  the  domain  of  speculation  and 
placing  them  where  they  will  be  able  to  respond  more  effect- 
ively to  the  requirements  of  manufacturers,  merchants,  and 
farmers ;  and  providing  for  the  establishment  of  American  in- 
stitutions to  conduct  foreign  banking.  In  attaining  these  ends, 
the  independence  of  individual  banks,  whether  organized  under 
National  or  State  charters,  to  be  carefully  protected  and  the 
banking  system  safeguarded  from  any  possibility  of  domina- 
tion by  sectional,  financial,  or  political  interests. 

The  necessity  of  reforming  the  methods  of  formulating  finan- 
cial legislation  was  urged  by  President  Taft  in  his  message 
to  Congress  of  December  6,  1910.     In  this  he  says : 

"The  method  of  impartial  scientific  study  by  experts  as  a  preliminary 
to  legislation,  which  I  hope  to  see  ultimately  adopted  as  our  fixed  na- 
tional policy  with  respect  to  the  tariff,  rivers  and  harbors,  waterways  and 
public  buildings,  is  also  being  pursued  by  the  non-partisan  Monetary  Com- 
mission of  Congress.  An  exhaustive  and  most  valuable,  study  of  the 
banking  and  currency  systems  of  foreign  countries  has  been  completed. 

"A  comparison  of  the  business  methods  and  institutions  of  our  powerful 
and  successful  commercial  rivals  with  our  dwn  is  sure  to  be  of  immense 
value.  I  urge  upon  Congress  the  importance  of  a  non-partisan  and  dis- 
interested study  of  our  banking  and  currency  system.  It  is  idle  to  dream 
of  commercial  expansion,  and  of  the  development  of  our  national  trade  on 
a  scale  that  measures  up  to  our  matchless  opportunities,  unless  we  can 
lay  a  solid  foundation  in  a  sound  and  enduring  banking  and  currency  sys- 
tem.    The  problem  is  not  partisan,   it  is  not  sectional — it  is  national. 

During  the  last  four  years,  since  the  panic  of  1907  accentuated 
the  necessity  for  currency  reform  in  so  striking  a  manner,  the 
preliminary  steps  have  been  taken.  A  nonpartisan  Monetary 
Commission,  made  up  of  the  members  of  both  parties  in  the 
two  Houses,  has  been  appointed  and  has  made  a  thorough  study 
of  financial  conditions  both  in  the  United  States  and  abroad, 
generally  conceded  to  have  been  the  most  exhaustive  under- 
taken by  any  government  or  any  governmental  agency.  It 
has  also  prepared  a  bill  for  submission  to  Congress,  to  serve 
as  a  basis  upon  which  to  work,  for  permanent  financial 
legislation  that  will  eliminate  the  faults  of  the  present  system. 

184 


CURRENCY.  185 


PRESIDENT  TAFT  TO  CONGRESS. 

The  situation  confronting-  Conp-ress  when  the  present  session 
was  called  is  described  by  President  Taft  in  his  message  of 
December  21,  1911.     In  this  he  said: 

"A  matter  of  first  importance  that  will  come  before  Congress  for  action 
at  this  session  is  monetary  reform.  The  Congress  has  itself  arranged  an 
early  introduction  of  this  great  question  through  the  report  of  its  Monetary 
Commission.  This  commission  was  appointed  to  recommend  a  solution  of 
the  banking  and  currency  problems  so  long  confronting  the  Nation  and  to 
furnish  the  facts  and  data  necessary  to  enable  the  Congress  to  take  action. 
The  commission  was  appointed  when  an  impressive  and  urgent  popular 
demand  for  legislative  relief  suddenly  arose  out  of  the  distressing  situa- 
tion of  the  people  caused  by  the  deplorable  panic  of  1907.  The  Congress 
decided  that  while  it  could  not  give  immediately  the  relief  required,  it 
would  provide  a  commission  to  furaish  the  means  for  prompt  action  at  a 
later  date. 

"In  order  to  do  its  work  with  thoroughness  and  precision  this  commis- 
sion has  taken  some  time  to  make  its  report.  The  country  is  undoubtedly 
hoping  for  as  prompt  action  on  the  report  as  the  convenience  of  the  Con- 
gress can  permit.  The  recognition  of  the  gross  imperfections  and  marked 
inadequacy  of  our  banking  and  currency  system  even  in  our  most  quiet 
financial  periods  is  of  long  standing ;  and  later  there  has  matured  a  recog- 
nition of  the  fact  that  our  system  is  responsible  for  the  extraordinary  de- 
vastation, waste,  and  business  paralysis  of  our  recurring  periods  of  panic. 
Though  the  members  of  the  Monetary  Commission  have  for  a  consider- 
able time  been  working  in  the  open,  and  while  large  numbers  of  the  people 
have  been  openly  working  with  them,  and  while  the  press  has  largely 
noted  and  discussed  this  work  as  it  has  proceeded,  so  that  the  report  of 
the  commission  promises  to  represent  a  national  movement,  the  details 
of  the  report  are  still  being  considered.  I  can  not,  therefore,  do  much 
more  at  this  time  than  commend  the  immense  importance  of  monetary 
reform,  urge  prompt  consideration  and  action  when  the  commission's  re- 
port is  received,  and  express  my  satisfaction  that  the  plan  to  bf  pro- 
posed promises  to  embrace  main  features  that,  having  met  the  approval 
of  a  great  preponderance  of  the  practical  and  professional  opinion  of  the 
country,  are  likely  to  meet  equal  approval  in  Congress 

"It  is  exceedingly  fortunate  that  the  wise  and  undi-sputed  policy  of 
maintaining  unchanged  the  main  features  of  our  banking  system  rendered 
it  at  once  impossible  to  introduce  a  central  bank ;  for  a  central  bank 
would  certainl  have  been  resisted,  and  a  plan  into  which  it  could  have 
been  introduced  would  probably  have  been  defeated  But  as  a  central 
bank  could  not  be  a  part  of  the  only  plan  discussed  or  considered,  that 
troublesome  question  eliminated.  And  ingeniuos  and  novel  as  the 
proposed  National  Reserve  Association  appears,  it  simply  is  a  logical 
outgrowth  of  what  is  best  in  our  present  system,  and  is,  in  fact,  the 
fulfillment  of  that  system. 

"Exactly  how  the  management  of  that  association  should  be  organized 
is  a  question  still  'open.  It  seems  to  be  desirable  that  the  banks  which 
would  own  the  association  should  in  the  main  manage  it.  It  will  be  an 
agency  of  the  banks  to  act  for  them,  and  they  can  be  trusted  better  than 
anybody  else  chiefly  to  conduct  it.  It  is  mainly  bankers'  work.  But  there 
must  be  some  form  of  Government  supervision  and  ultimate  control,  and 
I  favor  a  reasonable  representation  of  the  Government  in  the  manage- 
ment. I  entertain  no  fear  of  the  introduction  of  politics  'or  of  any  unde- 
sirable influences   from   a   properly  measured   Government   representation. 

"I  trust  that  all  banks,  of  the  country  posessing  the  requisite  standards 
will  be  placed  upon  a  footing  of  perfect  equality  of  opportunity.  Both 
the  National  system  and  the  State  system  should  be  fairly  reeognized, 
leaving  them  eventually  to  coalesce  if  that  shall  prove  to  be  their  ten- 
dency. But  such  evolution  can  not  develop  impartially  if  the  banks  of 
one  system  are  given  or  permitted  any  advantages  of  opportunity  over 
those  of  the  other  system.  And  I  trust  also  that  the  new  legislation  will 
carefully  and  completely  protect  and  assure  the  individuality  and  the  inde- 
pendence of  each  bank,  to  the  end  that  any  tendency  there  may  ever  be 
toward  a  consolidation  of  the  money  'or  banking  power  of  the  Natioo  shall 
be  defeated. 

"It  will  always  be  possible,  of  course,  to  correct  any  features  of  the 
new  law  which  may  in  practice  prove  to  be  unwise ;  so  that  while  this 
law  is  sure  to  be  enacted  under  conditions  of  unusual  knowledge  and 
authority,  it  also  will  include,  it  is  well  to  remember,  the  possibility  of 
future  amendment. 

"With  the  present  prospects  of  this  long-awaited  reform  encouraging  us, 
it  would  be  singularly  unfortunate  if  this  monetary  question  should  by 
any  chance  become  a  party  issue.  And  I  sincerely  hope  it  will  not.  The 
exceeding  amount  of  consideration  it  has  received  from  the  people 
of  the  Nation  has  been  wholly  non-partisan ;  and  the  Congress  set  its 
non-partisan  seal  upon  it  when  the  Monetary  Commission  was  appointed. 
In  commending  the  question  to  the  favorable  consideration  of  Congress,  I 
speak  for,  and  in  the  spirit  'of  ,the  great  number  of  my  fellow  citizens 
who  without  any  thought  of  party  or  partisanship  feel  with  remarkably 
earnestness  that  this  reform  is  necessary  to  the  interests  of  all  the 
people." 

The  possibility  of  enacting  permanent  financial  legislation 
in  the  political  stress  and  sto-rm  that  has  characterized  the 
present  Congress  was  manifestly  remote  and,  by  a  general  un- 
derstanding, the  farther  consideration  of  the  report  of  the 
Monetary  Commission  was  postponed.     The  necessity  for  action, 


186  CURRENCY. 

however,  is  fast  becoming  urgent.  The  provisions  for  the  issue 
of  emergency  currency  adopted  by  Congress  in  1908  expire. 
under  the  terms  of  the  law,  on  June  30,  L914,  and  additional 
and  more  permanent  legislation  is  essentia!.  As  the  next  ses- 
sion of  the  present  Congress  will  be  a  short  session,  it  will 
probably  fall  to  the  lot  of  the  following  Congress  to  under- 
take this  great  task. 


SENATOR  ROOT   AT   CHICAGO. 

Senator  Eoot.  in  his  speech  as  chairman  of  the  Republican 
National  Convention  of  1912,  said  : 

The  national  currency,  which  the  election  of  McKinley  rescued  from 
fits  Aster  at  the  hands  of  a  Free  Silver  Democracy,  still  rests  upon  the 
Civil  War  basis  of  Government  bonds,  and  is  no  longer  adapted  to  our 
changed  conditions.  It  is  inelastic ;  its  volume  does  not  expand  and  con- 
tract according  to  legitimate  demands  of  business.  It  subjects  us  to 
constant  danger  'of  panics  which  begin  in  speculation  and  end  in  paralyz- 
ing business.  It  facilitates  and  promotes  the  arbitrary  control  of  a  small 
group  of  banks  and  bankers  with  enormous  capital,  and  tends  to  an  un- 
due concentration  of  the  money  of  the  country  in  a  few  great  money 
centers.  Any  possible  remedy  involves  the  study  of  world-wide  finance, 
because  we  are  no  longer  isolated,  and  money  flows  from  city  to  city  and 
country  to  country,  in  accordance  with  the  laws  of  demand  and  supply 
and  the  attraction  of  interest  rates.  No  Congress  could,  by  its  ordinary 
methods,  get  beyond  the  surface  of  the  vast  and  complicated  problem, 
yet  the  working  out  of  a  new  system  adapted  to  American  conditions  is 
of  vital  importance  to  the  prosperity  of  the  contry  and  the  security  of 
every  business  and  of  every  man  whose  support  is  directly  or  indirectly 
dependent  upon  American  business.  For  the  solution  of  this  question  the 
policy  of  the  Republican  Party  established  a  Monetary  Commission,  which 
has  made  a  most  thorough  and  exhaustive  study  of  the  financial  systems 
of  all  civilized  nations,  of  their  relations  to  our  'own  system,  and  the 
needs  of  American  business.  The  commission  has  reported  a  bill  for 
the  establishment  of  a  new  system  of  reserve  associations  under  which 
the  currency  will  be  elastic,  the  business  of  the  country  will  find  ready 
sale  for  its  commercial  paper,  the  people  of  the  country  at  large  will 
exercise  control  instead  'of  a  little  group  of  large  bankers,  and  the  danger 
of  panics  will  disappear.  The  President  has  recommended  the  conclu- 
sions of  the  commission  to  the  Congress,  where  the  proposed  bill  is 
under  Consideration.  It  is  for  the  interest  of  every  business  man  in 
the  United  States  that  the  party  controlling  the  Government  shall  not 
be   changed   until   this   policy   has   been   carried    into   execution. 

The  currency  planks  of  the  Eepublican  and  Democratic  par- 
ties in  1912  are  as  follows: 


CURRENCY    PLANK    OF    REPUBLICAN     PLATFORM    OF     1912. 

The  Republican  Party  has  always  stood  for  a  sound  currency  and 
for  safe  banking  methods.  It  is  responsible  for  the  resumption  of  specie 
payments,  and  for  the  establishment  'of  the  gold  standard.  It  is  com- 
mitted to  the  progressive  development  of  our  banking  and  currency  sys- 
tem. Our  banking  arrangement  to-day  needs  further  revision  to  meet 
the  requirements  of  current  conditions.  We  need  measures  which  will 
prevent  the  recurrence  of  money  panics  and  financial  disturbances,  and 
which  will  promote  the  prosperity  of  business  and  the  welfare  of  labor 
by   producing   constant   employment. 

We  need  better  currency  facilities  for  the  movement  of  crops  in  the 
West  and  South.  We  need  banking  arrangements  under  American  au- 
spices for  the  encouragement  and  better  conduct  of  our  foreign  trade. 
In  attaining  these  ends  the  independence  of  individual  banks,  whether 
organized  under  National  or  State  charters,  must  be  carefully  protected, 
and  our  banking  and  currency  system  must  be  safeguarded  from  any 
possibility    of    domination    by    sectional,    financial    or    political    interests. 

It  is  of  great  importance  to  the  social  and  economic  welfare  of  this 
country  that  its  farmers  have  facilities  for  borrowing  easily  and  cheaply 
the  money  they  need  to  increase  the  productivity  of  their  land.  It  is  as 
important  that  financial  machinery  be  provided  to  supply  the  demand  of 
farmers  for  credit,  as  it  is  that  the  banking  and  currency  systems  be 
reformed  in  the  interest  of  general  business.  Therefore  we  recommend  and 
urge  an  authoritative  investigation  of  agricultural  credit  societies  and 
corporations  in  other  countries,  and  the  passage  of  State  and  Federal 
laws  for  the  establishment  and  capable  supervision  'of  organizations  having 
for   their    purpose    the    loaning   of    funds    to    farmers. 

CURRENCY    PLANK    OF    DEMOCRATIC    PLATFORM,    1912. 

We  oppose  the  so-called  Aldrich  bill  for  the  establishment  of  a  central 
bank,  and.  we  believe  the  people  of  the  country  will  be  largely  freed  from 
panics  and  consequent  unemployment  and  business  depression  by  such  a 
systematic  revision  of  our  banking  laws  as  will  render  temporary  relief 
in  localities  where  such  relief  is  needed,  with  protection  from  control  or 
domination  by  what  is  known   as  the   Money  Trust. 

Banks  exist  for  the  acc'ommodation  of  the  public  and  not  for  the  control 


CURRENCY.  187 

of  business.  All  legislation  on  the  subject  of  banking  and  currency  should 
have  for  its  purpose  the  securing  of  these  accommodations  on  terms  of 
absolute  security  to  the  public  and  of  complete  protection  from  the  misuse 
of  the   power  that  wealth  gives  to  those  who  possess   it. 

We  condemn  the  present  methods  of  depositing  Government  funds  in  a 
few  favored  banks,  largely  situated  in  or  controlled  by  »Vall  street,  in 
return  for  political  favors,  and  we  pledge  our  party  to  provide  by  law 
for  their  deposit  by  competitive  bidding  by  the  banking  institutions  of  the 
country,  National  and  State,  without  discrimination  as  to  locality,  upon 
approved   securities   and    subject   to   call   by   the   Government. 

Of  equal  importance  with  the  question  of  currency  reform  is  the  question 
of  rural  credits  or  agricultural  finance.  Therefore  we  recommend  that 
an  investigation  of  a  agricultural  credit  societies  in  foreign  countries  be 
legislation  permitting  national  banks  to  loan  a  reasonable  proportion  of 
made,  so  that  it  may  be  ascertained  whether  a  system  of  rural  credits  may 
be  devised  suitable  to  conditions  in  the  United  States,  and  we  also  favor 
legislation  permitting  national  banks  to  loan  a  reasonable  proportion  of 
their   funds  on   real   estate   security. 

The  Democratic  party,  it  will  be  seen,  follows  the  negative 
course  of  condemning-  the  report  of  the  Monetary  Commis- 
sion and  shows  a  disposition  to  hark  back  to  the  old  methods 
which  have  failed  to  make  the  currency  and  financial  systems 
responsive  to  the  needs  of  the  day.  The  only  promise  of  per- 
manent financial  legislation  not  subject  to  the  influences  of 
partisan  or  political  practices,  but  undertaken  alter  careful 
study  by  experts  qualified  to  analyze  conditions  and  suggest 
reform,  lies  in  the  Kepublican  party. 


We  shall  send  our  flag  into  all  ports  of  trader  not  as  a  menace, 
but  as  the  harbinger  of  peace  and  good- will. — Hon.  C.  W.  Fair- 
banks,  at   Freehold,  A.  J.,  June  27,   1903. 

The  dollar  paid  to  the  farmer,  the  wage-earner,  and  the  pen- 
sioner must  continue  forever  equal  in  purchasing  and  debt-paying 
power  to  the  dollar  paid  to  any  government  creditor. — Maj.  McKin- 
ley  to    Notification   Committee,  1896. 

In  this  age  of  frequent  interchange  and  mutual  dependence,  we 
cannot  shirk  our  international  responsibilities  if  we  would?  they 
must  be  met  with  courage  and  wisdom,  and  we  must  follow  duty 
even    if    desire    opposes. — President    McKinley    at    Omaha,    October 

12,  1898. 

Experience  of  more  than  forty  years  in  business  has  taught  me 
that  under  a  low  or  revenue  taritf  business  depression  and  financial 
distress  has  been  the  rule,  while  under  protection  good  business 
and  general  prosnerity  has  been  the  result.— Hon.  N.  D.  Sperry, 
M.   C,  of  Aew   Haven,   Conn.,  in   the  "American  Economist." 

All  the  prosperity  enjoyed  by  the  American  people — absolutely 
all  the  prosperity,  without  any  reservation  whatever — from  the 
foundation  of  the  United  States  Government  down  to  the  present 
time,  has  been  under  the  reign  of  protective  principles;  and  all 
the  hard  times  suffered  by  the  American  people  in  the  same  period 
have  been  preceded  either  by  a  heavy  reduction  of  duties  on 
imports  or  by  insufficient  protection,  thus  refuting  all  free-trade 
theories  on  the  subject.  As  I  desire  my  native  land  to  be  on  the 
apex  of  prosperity,  rather  than  under  the  heel  of  hard  times,  I 
am  a  protectionist. — David  H.  Mason,  in  the  "American  Economist." 

American  exports  of  manufactures  increased  between  1880  and 
1908  from  $122,000,000  to  $750,000,000.  This  represents  a  growth 
during  the  period  of  515  per  cent.,  as  against  45%  per  cent,  made 
by  Great  Britain,  180  per  cent,  by  Germany  and  43  per  cent,  by 
France.  In  view  of  the  fact  that  free  traders  have  always  con- 
tended that  the  inevitable  result  of  the  pursuit  of  the  protective 
policy  would  be  to  render  the  country  incapable  of  competing  in 
foreign  markets,  these  figures  are  peculiarly  interesting.  They 
are  made  doubly  so  by  the  fact  that  the  conditions  which  have 
made  this  growing  competition  possible  permit  the  American  con- 
sumer to  use  a  larger  proportion  of  the  manufactured  articles 
produced  at  home  than  is  retained  by  any  other  people  with  a 
highly  developed  manufacturing  industry.  —  San  Francisco 
"Chronicle." 

I  think  it  never  could  have  entered  the  minds  of  the  men  who 
framed  the  constitution  that  there  could  be  found  in  all  time  men 
who  would  favor  the  recall  of  the  judiciary.  To  me  the  proposition 
is  unthinkable.  No  self-respecting  man  would  accept  judicial  office 
under  such  conditions.  The  recall  of  judges  is  only  equalled  by 
that  twin  devil,  the  recall  of  judicial  decisions.  I'm  a  firm  be- 
liever in  the  people,  in  the  sober  second  thought  of  the  people, 
but  I  have  seen  the  people,  when  appealed  to  by  some  gifted  and 
attractive  demagogue,  go  wild.  I've  seen  them  vote  for  measures 
which  a  few  years  later  they  wanted  wiped  from  the  statute  books. 
No  American  citizen  has  a  right  to  tolerate  doctrines  so  wild  and 
revolutionary.  It  is  no  more  a  question  of  politics  than  the  pres- 
ervation of  the  Union  was  a  question  of  politics. — Hon.  John  C. 
Spooner. 


THE    DEMOCRATIC   FREE   SUGAR  BILL. 


A  deliberate  attempt  to  ilestroy  our  domestic  su^ar  industry;  In 
the  interest   of  the  refiners — a   proposal    to  sacrifice 
the   fanners   to  the   Sujpar  Trust. 

The  Ways  and  Means  Committee  of  the  Democratic  House 
of  Representatives  presented  in  that  body  in  March,  1912,  a 
bill  placing  sugar  on  the  free  list,  and  the  Democratic  House 
passed  it.  It  went  to  the  Republican  Senate,  was  referred  to  the 
Republican  Finance  Committee,  and  was  adversely  reported.  That 
the  enactment  of  the  bill  into  law  would  have  destroyed  our  beet 
and  cane  suar  industries  and  at  the  same  time  benefited  the 
refiners — the  Sugar  Trust — cannot  be  doubted  when  the  following 
statements  are   read : 


POSITION    OF   THE   DEMOCRATIC   PARTY    ON    THE    SUGAR   TARIFF. 

The  unanimous  report  of  the  Democratic  members  of  the  Ways 
and  Means  Committee  accompanying  their  free  sugar  bill  sub- 
mitted to  the  House  of  Representatives  on  March  5,  1912,  con- 
tains the  following  declaration  of  principles: 

Beet  sugar  leaves  the  first  manufacturing  establishment  in  a 
refined  condition,  but  all  cane  sugar,  which  constitutes  about  four- 
fifths  of  our  consumption,  must  be  refined;  consequently  the  re- 
fining interest  is  the  most  important  factor  connected  with  sugar 
manufacturing  in  the  United  States.  Therefore,  the  industrial 
position  of  refining  requires  primary  consideration.  The  ability 
of  refiners  to  compete  with  other  countries  without  the  aid  of 
tariff  protection   cannot  be   successfully   denied. 

The  line  of  demarcation  between  the  policies  of  the  two  great 
parties  is  thus  clearly  drawn.  The  Republican  Party  is  pledged 
to  the  development  of  the  domestic  sugar  industry. 

The  Democratic  Party  maintains  that  in  shaping  a  sugar  tariff 
"the  industrial  position  of  refining  requires  primary  con- side  ration." 

The  Sixty-second  Congress  appointed  a  special  committee, 
commonly  called  the  Hardwick  Committee,  "On  the  Investigation 
of  the  American  Sugar  Refining  Company  and  Others."  That 
committee  submitted  to  the  House  of  Representatives  a  unanimous 
report  wherein  they  find,  on  pages  14  and  15,  that  but  12  per 
cent,  of  the  refining  industry  of  the  United  States  is  indepei*dent 
of  the  direct  or  indirect  control  of  the  American  Sugar  Refining 
Company — that  is,  that  88  per  cent,  of  the  sugar  refining  business 
of  the  United  States  is  under  the  direct  or  indirect  control  of  the 
American  Sugar  Refining  Company,  commonly  called  the  trust. 
It  follows  inevitably,  therefore,  that  in  the  unanimous  opinion 
of  the  Democratic  members  of  the  Ways  and  Means  Committee 
previously  quoted,  the  Sugar  Trust  "requires  primary  considera- 
tion" in  framing  a  sugar  tariff. 

Representatives  of  every  leading  sugar  refining  company  in 
the  United  States  appeared  before  the  Hardwick  Committee  and 
asked  either  for  a  heavy  reduction  in  the  present  duty  on  sugar 
or  for  absolute  free  trade  in  that  commodity. 

The  Democratic  members  of  the  House  conformed  io  the 
demand  of  the  refiners,  anet  passed  a  biil  placing  sugar  on  the 
free  list. 

The  action  of  the  Democratic  members  of  the  House  of  Repre- 
sentatives is  thus  in  direct  accord  with  the  unanimous  opinion  of 
the  Democratic  members  of  the  Ways  and  Moans  Committee 
when  they  stated  in  their  report  that  in  framing  a  sugar  schedule 
"the  industrial  position  of  refining  requires  primary  considera- 
tion." iTurtnermore,  this  Democratic  free  sugar  bill  Is  exactly 
what  the  representatives  of  the  sugar  Trust  asked  for  when  tney 
appeared  before  the  Hardwick   Committee, 

To  further  assist  the  refiners,  tney  provided  in  their  chemical 
schedule  that  bone  black,  which,  under  the  Payne  tariff  law, 

188 


THE  DEMOCRATIC   FREE   SUGAR  BILL.  189 

pays  25  per  cent,  ad  valorem  duty,  should  be  placed  on  the  free 
list.  Bone  black,  one  of  the  principal  items  of  expense  in  refining 
sugar,  is  now  practically  all  made  in  the  United  States,  and  is 
used  chiefly  by  the  sugar  refiners. 

BRIEF    HISTORY   OF   THE    SUGAR    TARIFF. 

The  first  Congress  passed,  on  July  4,  1789,  a  general  tariff  act, 
included  in  which  was  a  duty  on  sugar.  From  that  time  to  the 
present  sugar  ha^s  always  paid  a  duty,  except  during  the  opera- 
tions of  the  McKimey  law,  which  placed  raw  sugar  on  the  free 
list  and  levied  one-half  cent  per  pound  duty  on  refined  sugar, 
but  guarded  the  interests  of  the  domestic  producer  by  giving  a 
two-cent  per  pound  bounty  on  all  sugar  produced  in  the  United 
States. 

The  Walker  tariff  of  1846  levied  a  30  per  cent,  ad  valorem 
duty  on  sugar,  which  was  reduced  to  24  per  cent,  by  the  lowest 
sugar  tariff  in  our  history— that  of  1857. 

The  Wilson  bill  of  1894  placed  a  40  per  cent,  ad  valorem  duty 
on   sugar. 

With  the  exception  of  the  tariffs  thus  definitely  mentioned, 
the  Payne-Aldrich  bill  of  1909  placed  the  lowest  duty  on  sugar 
since  the  establishment  of  our  Government. 

The  war  with  Spain,  in  the  year  1898,  imposed  upon  this 
Government  certain  obligations  which  national  honor  demanded 
we  should  discharge.  Porto  Rico  and  the  Philippines  became 
insular  possessions.  Cuba  was  established  as  an  independent 
republic  under  our  protection.  Hawaii,  at  about  the  same  time, 
was  annexed,  and  the  permanence  of  its  free-trade  relations  with 
the  United  States  assured.  The  industry  upon  which  these  islands 
depend  for  prosperity  is  sugar.  To  establish  prosperity  in  these 
various  areas  and  thereby  injure  tranquility  and  prosperity  to 
their  people  became  one  of  the  most  serious  problems  confronting 
our  Government.  To  attain  this  end  we  made  permanent  the 
free  interchange  of  all  commerce  between  the  United  States  and 
Porto  Rico  and  Hawaii;  we  have  freely  admitted  the  products 
of  the  Philippines  into  our  markets,  where  the  same  do  not 
confliot  with  our  domestic  industries,  and  granted  to  those 
islands  a  tariff  system  of  their  own ;  and  we  negotiated  with 
Cuba  a  reciprocity  treaty  providing  for  a  20  per  cent,  concession 
in  the  tariff.  The  effect  of  this  legislation  has  been  to  establish 
in  all  those  islands  the  prosperity,  tranquility  and  happiness  which 
we  sought  to  give  them,  and  greatly  increase  their  purchasing 
power  and  actual  purchases  from  the  United  States. 

In  Hawaii  the  sugar  crop  increased  from  204,838  long  tons 
in  1897  to  506,096  long  tons  in  1910. 

In  Porto  Rico  the  sugar  crop  increased  from  85,000  long  tons 
in  1902  to  205,000  long  tons  in  1910. 

In  the  Philippines  the  sugar  crop  increased  from  92,794  long 
tons  in  1902  to  152,717  long  tons  in  1910. 

In  Cuba  the  sugar  crop  increased  from  1,040,228  long  tons  in 
1903  to  1,804,349  long  tons  in  1910. 

Contemporaneous  with  this  increase  in  the  sugar  crop  of  the 
islands  mentioned,  we  have  an  increase  in  our  beet  crop  in  the 
United  States  from  37,500  long  tons  in  1896-1897  to  455.000  long 
tons  in  1910-1911;  and  an  increase  in  our  domestic  cane  crop 
from  242,000  long  tons  in  1896-1897  to  311,000  long  tons  in  1910- 
1911.  It  appears,  therefore,  that  whereas  in  1896  we  produced 
279,500  long  tons  of  domestic  sugar,  we  in  1910  produced  in  con- 
tinental United  States  766,000  long  tons.  If  to  this  we  add  the 
sugar  raised  under  the  American  flag  in  Hawaii,  Porto  Rico 
and  the  Philippines,  we  have  a  grand  total  of  1,629,890  long  tons 
produced  in  1910  under  the  fostering  care  of  our  tariff  system,  all 
of  which  is  duty  free  when  entering  our  markets.  This  is  prac- 
tically half  our  present  consumption. 

The  tariff  policy  of  the  Republican  Party  has,  therefore,  served 
to  develop : 

1.  The  domestic  sugar  industry  of  the  United  States. 

2.  The  sugar  industry  of  Porto  Rico,  Hawaii  and  the  Philip- 
pine Isla-Hds,  thus  enablitoig  them  to  become  large  purchasers  of 
the  products  of  our  farms  and  factories. 


190  THE  DEMOCRATIC   FREE   SUGAR  BIKL. 

3.  The  sugar  industry  in  Cuba,  which  lias  also  increased  its 
purchases  from  us  by  nearly  100  per  cent,  since  the  reciprocity 
treaty. 

The  following  table  shows  the  consumption  of  sugar  in  the 
United  States  in  1011: 

Tons. 
Total  consumption  of  sugar  in  United  States 3,351,891 

Consumption   consisted  of: 

Domestic  cane    (Louisiana  and  Texas) 288,074 

I  >oi  nestle   beet    506,825 

Maple    8,000 

Molasses    sugar    8,910 

Total    domestic    811,809 

Hawaii   (cane) ,  duty  free  482,231 

Porto  Rico  (cane),  duty  free 280,022 

Philippine  Islands  (cane),  duty  free 168,408 

Cuba   (cane),  paying  80  per  cent,  of  full  duty 1,409,259 

Other  foreign  sugar,  paying  full  duty 199,062 

Practically  our  entire  sugar  supply  thus  comes  from  the  United 
States,  its  insular  possessions,  and  the  Island  of  Cuba,  which 
occupies  a  particularly  intimate  relation  to  the  United  States. 
At  the  same  time  our  tariff  on  sugar  is  so  adjusted  that  we  obtain 
from  it  $53,000,000  annually,  or  one-sixth  of  our  total  customs 
receipts. 

EUROPEAN    CONDITIONS. 

During  recent  years  about  one-half  the  world's  production  of 
sugar,  exclusive  of  India,  comes  from  beets.  Some  years  it* is  a 
trifle  more;  some  years  a  trifle  less.  The  world's  crop  of  beet 
sugar  is  produced  exclusively  in  Europe  and  the  United  States. 
The  leading  European  countries  engaged  in  the  production  of 
sugar  are  Germany,  Russia,  Austria  and  France.  In  these  coun- 
tries the  industry  is  one  hundred  years  old.  During  this  entire 
time  it  has  been  fostered  by  a  high  tariff,  by  conventions  and 
cartels. 

Foremost  among  the  European  nations  in  the  production  of 
sugar  is  Germany,  whose  average  annual  plantings  for  the  last 
three  years  amount  to  1,107,000  acres,  from  which  she  has  har- 
vested an  annual  average  crop  for  the  same  years  of  2,082,000 
long  tons.  That  is,  on  an  actual  planted  area  equivalent  to  only 
forty-eight  of  our  townships  she  produces  annually  about  two- 
thirds  as  much  sugar  as  the  United  States  consumes. 

The  Secretary  of  Agriculture  states  officially  that  the  area  in 
the  United  States  having  soil  and  climatic  conditions  adapted 
to  the  production  of  satisfactory  sugar  beets  is  at  least  274,000.000 
acres — that  is,  we  have  250  times  as  much  land  adapted  to  beet 
culture  as  is  used  by  Germany  in  any  one  year  in  producing  two- 
thirds  as  much  sugar  as  the  United  States  consumes. 

world's  crops  of  sugar — 1910-1911. 

Long  tons. 

Total  cane  sugar   8,411,883 

European  beet  sugar 8,105,126 

American  beet  sugar 455,220 

Total  cane  and  beet  sugar  16,972,229 

EUROPEAN   BEET   SUGAR    CHOPS — 1910-1011. 

Germany   2,606,122 

Austria    1.538,034 

France    724,897 

Belgium    2S4J14 

I lol land    221,359 

Russia    2.140,000 

Other  countries    590,000 

Total  tons   ! 8,105,126 

The  price  of  sugar  in  Europe,  either  tot  domestic  consumption 

or   export,   is   not   governed    by    the    law    of   supply    and    demand. 
England  and  all  the  beet  sugar  countries  of  Europe  are  members 


THE  DEMOCRATIC   FREE   SUGAR  BILL.  191 

of  the  Brussels  Convention,  an  international  agreement  for  the 
regulation  of  the  production,  distribution  and  prices  of  sugar.  In 
addition  to  this,  Austria-Hungary  maintains  a  system  of  cartels, 
while  Russia  has  a  most  complicated  system  of  both  direct  and 
indirect  bounties.  The  entire  commercial  movement  of  sugar  in 
Europe  is  thus  controlled  by  a  legalized  international  trust. 
The  only  protection  which  we  have  against  the  manipulation 
of  European  production  and  prices  is  our  tariff.  If  this  is 
removed,  the  producers  of  sugar  in  the  United  States,  Porto 
Rico,  Hawaii,  the  Philippines  and  Cuba  will  be  placed  not 
merely  on  a  free  trade  basis,  but  will  be  compelled  to  suffer 
a  handicap  caused  by  all  the  different  regulations  which  the 
experience  of  a  hundred  years  has  taught  to  the  Europeans. 
There  is  no  such  thing  in  the  commerce  of  the  world  as  the 
free  and  untrammeled  movement  of  sugar  under  the  law  of 
supply  and  demand.  If  the  United  States  abolishes  its  duty 
on  sugar  it  will  stand  alone  among  the  civilized  nations  of  the 
world  as  the  only  one  that  has  sugar  on  the  free  list. 

The  unanimous  report  of  the  Democratic  members  of  J;he 
Ways  and  Means  Committee  accompanying  their  free  sugar 
bill  gives  the  cost  of  producing  refined  sugar  in  Germany  as 
$2.41  y2  per  hundred  pounds,  and  the  average  cost  of  pro- 
ducing beet  sugar  by  thirteen  of  the  leading  beet  sugar  com- 
panies in  the  United  States  as  $3.54  per  hundred  pounds.  As 
the  freight  rate  from  Germany  to  New  York  is  only  12  cents 
per  hundred  pounds,  it  is  apparent  that  free  trade  in  sugar 
means  either  that  our  factories  must  close  down  or  that  the 
American  farmers  and  the  laborers  in  our  factories  must  accept 
practically  the  same  price  and  wages  as  European  farmers  and 
laborers    receive. 


EFFECT   OF   FREE   SUGAR   ON    OUR   TRADE   RELATIONS    WITH    CUBA. 

Since  1903  we  have  had  a  reciprocity  treaty  with  Cuba 
under  which  each  republic  admits  the  products  and  manu- 
factures of  the  other  at  a  20  per  cent,  concession  from  the 
tariff  rates  imposed  on  similar  articles  imported  from  other 
countries.  Under  this  treaty  we  have  built  up  an  export  trade 
to  Cuba  from  $22,000,000  in  the  fiscal  year  1903  to  $62,000,- 
000  in  the  fiscal  year  1912.  The  principal  articles  we  export 
to  Cuba  are  meat  products,  flour,  corn,  lumber,  manufactures 
of  iron,  boots  and  shoes. 

Since  making  this  treaty  we  have  bought  practically  all 
the  sugar  Cuba  produces.  It  is  her  chief  crop  and  principal 
source  of  wealth.  If  by  putting  sugar  on  the  free  list  we  deny 
to  Cuba  the  preferential  treatment  now  acccorded  her  sugar, 
it  is  not  to  be  supposed  that  she  will  continue  to  admit  our 
products  on  the  present  basis.  Free  sugar  means  a  virtual 
abrogation  of  our  treaty  with  Cuba,  thereby  not  only  striking 
at  our  great  and  growing  export  trade  to  that  island,  but 
endangering  the  present  cordial  trade  relations  under  which 
she  has  doubled  her  purchases  from  us. 


COMPARATIVE     ECONOMIC     VALUE     OF     THE     DOMESTIC     AND     REFINING 

INDUSTRIES. 

A  refinery  simply  refines  raw  sugar  at  an  expense  of  40 
cents  per  hundred  pounds  for  labor  and  material.  This  is  all 
the  service  it  performs.  All  the  raw  sugar  it  uses  comes  from 
abroad  and  represents  investments  in  foreign  countries  using 
cheap  labor,  such  as  that  of  Java,  which  is  paid  only  10  to  12 
cents  per  day.  To  buy  enough  raw  sugar  to  enable  the  refiners 
to  supply  our  1911  consumption  of  sugar  would  cost,  at  the 
average  price  of  the  past  ten  years,  $183,000,000.  It  would 
take  all  the  corn,  wheat,  wheat  flour,  bacon,  hams,  salt  pork, 
cattle,  fresh  beef,  canned  beef  and  salted  beef  we  exported 
that  year  to  pay  such  a  bill. 

The  $100,000,000- now  invested  in  the  domestic  beet  sugar 
industry  in  the  production  of  15  per  cent,  of  our  annual  con- 
sumption is  all  invested  in  the  United  States,  and  represents 
the  capital  used  not  merely  in  the  act  of  refining,  but  in  the 


198  THE   DEMOCRATIC   FREE  SUGAB   BILL. 

entire  production  of  refined  sugar  from  the  beet.  It  corre- 
sponds to  the  combined  investment  in  the  refining  industry 
and  the  raw  sugar  production.  It  is  all  home  capital  invested 
at  home,  and  pays  good  American  wages.  To  buy  its  products 
the  American  people  send  no  money  abroad.  Paraphrasing 
Lincoln's  celebrated  statement,  we  would  say  that  if  we  buy 
our  sugar  abroad  the  foreigner  has  the  money  and  we  have 
the  sugar;  if  we  make  it  at  home  we  have  both  the  money  and 
the  sugar.  Moreover,  there  is  spent  in  this  country  for  labor 
and  material  in  producing  each  100  pounds  of  domestic  beet 
sugar  $3.50  as  compared  with  40  cents  spent  for  the  same 
items  in  refining  100  pounds  of  imported  raw  sugar.  There 
was  actually  more  money  spent  in  this  country  for  labor  and 
material  in  producing  the  15  per  cent,  of  our  last  year's  con- 
sumption furnished  by  our  domestic  beet  crop  than  the  refiners 
would  spend  for  these  items  if  they  had  refined  our  entire 
consumption. 

The  refining  industry  is  necessarily  confined  to  a  few  sea- 
port cities,  and  the  entire  industry  is  concentrated  in  a  few 
corporations.  The  present  refineries  are  located  at  Boston, 
New  York,  Philadelphia,  Baltimore,  New  Orleans  and  San 
Francisco.  The  Hardwick  Committee  found  that  88  per  cent, 
of  this  entire  business  is  under  the  direct  or  indirect  control 
of  one  company. 

Our  seventy-one  beet  sugar  factories  are  soattered  through- 
out sixteen  States,  as  follows:  Arizona,  1;  California,  10; 
Colorado,  17;  Idaho,  4';  Illinois,  1;  Iowa,  1;  Kansas,  1;  Michi- 
gan, 17;  Minnesota,  1;  Montana,  1;  Nebraska,  2;  Nevada,  1; 
Ohio,  3;  Oregon,  1;  Utah,  6;  Wisconsin,  4.  The  advantages 
of  the  industry  are  thus  distributed  throughout  the  interior 
of  the  country.  As  the  capital  required  to  build  and  operate 
a  beet  sugar  factory  is  small  compared  with  that  used  in  the 
refining  business,  and  as  the  beet  sugar  area  of  the  United 
States  is  practically  unlimited,  the  domestic  sugar  industry 
offers  much  better  opportunity  for  desirable  healthy  compe- 
tition than  does  the  refining  indust  y. 

No  other  industry  has  been  developed  which  works  so  in 
harmony  with  the  national  policy  of  irrigation  and  reclama- 
tion. The  arid  West  is  far  removed  from  centers  of  population, 
and  it  has  been  difficult  to  develop  the  agricultural  resources 
of  that  territory  on  account  of  the  fact  that  freight  rates  to 
consuming  markets  are  so  high.  When  farmers  are  obliged 
to  pay  freight  from  these  arid  districts  to  such  centers  of 
population  as  Minneapolis  and  Chicago  on  the  entire  com- 
modity grown  from  the  soil  there  is  very  little  profit  left. 
When  these  farmers  raise  beets  it  is  necessary  to  transport 
to  these  centers  of  population  only  from  12  to  13  per  cent, 
of  the  weight  of  the  crop  in  the  form  of  the  finished  product. 
The  sugar-beet  crop  is  better  able  to  stand  the  cost  of  trans- 
portation than  is  any  other  crop  in  the  arid  districts. 

COST    OF    PRODUCING    SUGAB    IN    THE    UNITED    STATES    AND    IN    OTHER 

COUNTRIES. 

Wages  in  the  countries  producing  sugar  for  exportation 
are  much  lower  than  in  the  United  States.  In  France  the 
average  wage  of  men  in  beet-sugar  factories  is  about  84  cents 
per  day.  In  Cuba  the  wage  rate  for  factory  and  field  labor  is 
from  8  cents  to  10  cents  per  hour;  while  in  Java  the  daily 
wage  is  from  10  cents  to  12  cents  per  day.  To  open  the  door 
to  free  sugar  would  mean  that  our  labor  must  work  at  the 
same  rates  or  we  must  abandon  sugar  production. 

There  are  25,000  laborers  employed  in  the  seventy-one 
beet  sugar  factories  of  the  United  States.  These  men  have 
the  right  to  the  protection  guaranteed  them  by  the  National 
Republican  Platform. 

In  Java  the  cost  of  producing  raw  sugar  is  $1.50  per  100 
pounds. 

In  Cuba  the  cost  ranges  from  $1.35  per  100  pounds  on  the 
best  plantations  to  $2.00  per  100  pounds  on  the  old  plantations, 
£he  great  bulk  of  Cuban  sugar  being  produced  at  $1.50  per 
100  pounds. 


THE  DEMOCRATIC   FREE  SUGAR  BILL.  193 

In  Germany  the  cost  of  producing  raw  sugar  ranges  from 
$1.96  to  $2.07  per  100  pounds,  while  the  average  cost  of 
producing  refined  sugar  is  $2.25  per  100  pounds. 

The  cost  of  producing  sugar  in  Russia,  Austria  and  France 
is  no  greater  than  in  Germany.  Even  with  this  low  cost 
Europe  finds  it  necessary  to  maintain  a  high  tariff  against  the 
still  cheaper  sugar  of  the  tropics. 

The  freight  rates  to  the  United  States  are:  From  Europe, 
12  cents;  from  Cuba,  10  cents;  from  Java,  20  cents  per  100 
pounds. 

The  average  cost  of  beet  sugar  produced  by  thirteen  prin- 
cipal companies,  operating  thirty-four  factories  in  the  United 
States,  is  $3.54  per  100  pounds.  If  Europe,  with  its  experi- 
ence of  more  than  a  hundred  years  in  producing  sugar,  and 
with  its  own  cheap  labor,  finds  it  necessary  to  maintain  a  pro- 
tection against  tropical  sugar  and  tropical  labor,  how  much 
more  important  is  it  for  the  United  States,  with  its  higher 
cost  of  production  to  maintain  a  protective  tariff  against  the 
tropical  countries  from  which  we  get  all  the  sugar  we  do  not 
ourselves  produce. 

Under  the  free  sugar  bill  as  passed  by  the  House,  the  Ameri- 
can beet  sugar  manufacturer  would  not  only  be  forced  to 
compete  with  the  cheap  foreign  sugars  above  mentioned,  but 
he  would  be  under  the  still  further  handicap  imposed  by  a 
bounty  of  72  cents  per  100  pounds  on  sugar  shipped  to  the 
United  States  from  Russia,  the  second  largest  beet-sugar 
country  in  the  world.  It  must  be  remembered  that  the  House 
bill  not  only  places  sugar  on  the  free  list,  but  it  repeals  the 
countervailing  duty  now  levied  against  sugar  receiving  an 
export  bounty  by  any  foreign  country. 

HOW  DOMESTIC  BEET  SUGAR  KEEPS  DOWN  THE  PRICE  OF  FOREIGN  SUGAR 
TO    THE    CONSUMER. 

All  beet  sugar  made  in  the  United  States  is  granulated  sugar 
— a  refined  product — and  comes  into  direct  competition  with 
the  output  of  the  refiners.  Every  pound  of  sugar  manufactured 
In  the  beet  sugar  factories  of  the  United  States  lessens  by  that 
amount  the  output  of  the  refineries. 

Our  present  crop  of  beet  sugar  constitutes  15  per  cent,  of 
the  entire  annual  consumption  in  the  United  States.  It  is 
customary  to  reserve  a  small  amount  of  beet  sugar  for  local 
markets  and  supply  these  markets  nearly  the  entire  year.  The 
great  bulk  of  the  crop,  is,  however,  marketed  during  five 
months  of  the  year.  As  beet  sugar  constitutes  15  per  cent,  of 
our  entire  annual  consumption,  the  beet  sugar  pro- 
duced in  this  country,  therefore,  amounts  to  36  per  cent,  of 
the  entire  consumption  for  these  five  months.  Owing  to 
freight  conditions  beet  sugar  is  not  now  marketed  extensively 
east  of  Buffalo  and  Pittsburgh,  south  of  the  Ohio  River,  or 
south  of  Arkansas  and  Oklahoma.  In  other  words,  it  reaches 
only  about  one-half  of  our  people  during  five  months  of  the 
year.  In  the  territory  in  which  it  does  enter  it  therefore  con- 
stitutes about  70  per  cent,  of  the  consumption  during  the 
period  of  active  marketing.  Such  a  large  proportion  of  beet 
sugar  largely  fixes  the  price  for  other  sugars,  and  as  the 
eastern  refiners  cannot  maintain  different  basing  price  for 
different  sections  of  the  United  States,  it  becomes  a  predom- 
inant influence  in  determining  the  price  of  sugar  throughout 
the  entire  United  States  during  the  five  active  months  in  which 
it  is  sold.  That  the  beet  sugar  produced  in  this  country  did 
protect  the  people  of  the  United  States  from  the  imposition  of 
excessively  high  prices  for  sugar  in  1911  is  perfectly  apparent, 
as  shown  by  the  following  statement: 

The  entire  Cuban  crop  of  raw  sugar  was  bought  at  low  figures 
early  in  the  summer  of  1911  by  eastern  refiners,  and  they  were 
in  position  to  advance  their  price  on  refined  sugar  on  the 
strength  of  European  quotations,  thus  making  an  abnormal 
profit.  Under  such  conditions,  some  refiners  advanced  their 
price  from  5  cents  per  pound  the  1st  of  July  1911  to  6%  cents 
per  pound  in  September-October,  while  others  advanced  their 
price  to  7  *4  cents  and  even  7  V£  cents  per  pound.     Beet  sugar 


194  THE  DEMOCRATIC  FREE  SUGAR  BILL. 

having  been  sold  for  October-November  delivery  at  $6.55  per 
100  pounds,  the  eastern  refiners  were  forced  not  only  to  stop 
their  advances,  but  to  lower  their  prices.  When  their  cheap 
Cuban  sugar  had  been  exhausted,  they  bought  Louisiana  raws 
(domestic  sugar)  at  a  price  which  would  enable  them  to  com- 
pete with  the  $5.55  price  of  beet  sugar.  Operating  thus,  they 
cut  their  price  on  refined  sugar  to  $.5.75  per  100  pounds, 
bringing  their  price  to  the  customary  2  0  points  above  beet. 
No  better  illustration  can  be  given  showing  the  advantage  of 
the  domestic  crop  in  checking  the  grasping  tendency  of  the 
refiners,  and  forcing  them  to  meet  competition  of  beet  sugar. 
If  there  had  been  no  domestic  crop  the  eastern  refiners  could 
have-  tontinued  marking  up  their  sugar  until  the  new  Cuban 
sugars  came  on  the  market  early  in  January.  It  is  quite 
probable  that  under  such  circumstances  the  consumers  in  the 
United  States  would  have  paid  at  least  12  cents  per  pound  for 
their  sugar  in  the  autumn  of  1911. 

It  is  quite  natural,  under  circumstances  as  above  outlined, 
that  refiners  look  with  disfavor  upon  the  enlargement  of  the 
domestic  beet  sugar  industry.  Some  refiners  who  appeared 
before  the  Hardwick  Committee  advocate  a  reduction  in  the 
duty  on  sugar;  others  are  in  favor  of  placing  sugar  on  the 
free  list.     The  animus  behind  such  agitation  is  very  apparent. 


THE     WONDERFUL     STORY     OP     BEET     SUGAR    ABROAD     AND 

AT    HOME. 

Unlike  most  of  the  world's  principal  food  products,  sugar 
was  not  handed  down  to  us  by  the  ancients.  Prior  to  the  time 
when  Queen  Elizabeth  introduced  it  as  an  article  of  diet  in 
the  middle  of  the  seventeenth  century,  sugar  was  produced  in 
but  limited  quantities  for  use  in  the  arts  and  sciences,  and  it 
sold  in  London  at  several  dollars  per  pound.  In  1750  the 
London  price  of  sugar  had  fallen  to  17%  cents  per  pound,  but 
from  that  time  the  demand  for  this  new  article  of  diet 
increased  so  rapidly  that,  notwithstanding  the  fact  that  the 
production  reached  1,000,000  tons  in  1806,  the  price  of  sugar 
in  both  London  and  Paris  had  risen  to  31%  cents  per  pound, 
an  increase  of  nearly  100  per  cent,  in  fifty-six  years.  At  that 
time  the  world's  supply  came  wholly  from  the  cane  of  the 
tropics,  and  there  is  no  telling  what  the  price  would  be  to-day 
had  not  science  stepped  in  and  revolutionized  the  industry. 

BEET    SUGAR. 

In  the  latter  part  of  the  eighteenth  century  science  discov- 
ered a  new  source  of  sugar  supply,  and  due  to  the  foresight, 
energy  and  encouragement  of  Napoleon  Bonaparte,  334  beet 
sugar  factories  were  erected  in  France  during  the  years  1811 
and  1812.  From  this  beginning  the  beet  sugar  industry  spread 
over  all  Europe,  and  now,  from  the  Mediterranean  on  the 
south  to  the  Baltic  on  the  north,  there  are  1382  beet  sugar 
factories  on  the  Continent,  and  they  produce  50  per  cent,  of 
the  world's  consumption  of  sugar. 

BECENT   INCREASE   IN    CONSUMPTION. 

During  the  past  fifty  years  the  per  capita  consumption  of 
sugar  has  quadrupled  in  the  leading  countries  of  the  world, 
and  the  people  of  Great  Britain  and  the  United  States  now 
eonsume  annually  more  than  eighty  pounds  per  capita,  five- 
eighths  of  which  is  purchased  by  consumers  as  sugar,  the 
balance  being  consumed  in  such  articles  as  confectionery, 
chewing  gum,  condensed  milk  and  bakery  products. 

In  one  century  the  world's  consumption  of  sugar  has  risen 
from  1,000,000  tons  to  17,000,000  tons,  and  if  for  this  seven- 
teen-fold  demand  we  now  depended  on  one  source  of  supply 
and  the  crude  methods  which  prevailed  in  the  production  of 
cane  sugar,  the  price  of  sugar  would  be  higher  to-day  than  it 
was  a  century  ago.  In  addition  to  discovering  a  new  source 
of  supply    much  of  the  machinery  which  science  developed  in 


THE  DEMOCRATIC  FREE   SUGAR  BILL.  195 

order  to  extract  sugar  from  beets  was  found  to  be  applicable 
to  the  production  of  cane  sugar,  and  as  a  result  the  cost  of 
producing  this  commodity  has  so  declined  that  in  1910  the 
average  New  York  wholesale  price  of  refined  sugar  was  4.97 
cents  per  pound,  or  15.7  per  cent,  of  what  it  was  prior  to  the 
advent  of  the  beet  sugar  industry,  a  decline  in  price  such  as  is 
not  to  be  found  in  any  other  food  product  in  the  world. 
Based  on  the  London  and  Paris  prices  for  1806,  and  the  New 
York  price  for  1910,  the  world  paid  $706,000,000  for  1,000,000 
tons  of  sugar  in  1806,  and  in  1910  secured  an  equal  amount 
for  only  $99,400,000.  In  other  words,  for  less  than  three 
times  the  outlay,  the  world  secured  seventeen  times  as  much 
sugar  in  1910  than  it  did  in  180$ 


BEET   SUGAR   IN   THE   UNITED    STATES. 

The  early  attempts  to  introduce  sugar-beet  culture  in  the 
United  States  were  failures.  In  188  8  the  two  small  factories 
then  in  existence  produced  1891  tons  of  sugar.  Under  the 
McKinley  law  of  1890,  which  provided  a  bounty  of  2  cents  a 
pound  on  domestic  sugar  production,  four  new  factories  were 
erected,  and  when  the  bounty  was  repealed  the  six  factories 
were  producing  2  0,000  tons  of  sugar  a  year. 

Under  the  ad  valorem  Wilson  law  of  1894  no  new  factories 
were  erected.  The  Dingley  law  of  1897  fixed  the  rate  of  duty 
on  96  degree  foreign  raw  sugar  at  1.68%  cents  per  pound, 
and  as  a  direct  result  of  this  legislation,  nearly,  if  not  quite, 
$100,000,000  has  been  invested  in  the  domestic  beet  sugar 
industry. 

At  the  present  time  (1912)  there  are  seventy-five  beet-sugar 
factories  in  the  United  States,  located  in  eighten  States.  In 
1911  these  factories  purchased  4,800,000  tons  of  beets,  grown 
on  480,000  acres  of  land,  and  manufactured  1,200,000,000 
pounds  (600,000  tons)  of  white  granulated  sugar,  ready  for 
the  table,  worth,  at  5  cents  per  pound,  $60,000,000.  During 
each  operating  season,  these  factories  employ  2  5,000  mechanics 
and  laborers  in  and  about  the  factories,  disburse  $29,000,000 
for  sugar  beets  and  half  as  much  more  for  labor,  fuel,  supplies, 
freights,  etc.  Since  the  enactment  of  the  Dingley  law,  these 
factories  have  produced  4,000,000  tons  of  sugar,  and,  esti- 
mating the  average  cost  of  production  at  4'  cents  per  pound 
during  this  period,  they  have  distributed  $320,000,000  to 
American  farmers,  mechanics  and  laborers,  practically  all  of 
which  would  have  been  sent  to  foreign  countries  but  for  the 
establishment  of  the  beet-sugar  industry  in  the  United  States. 
Notwithstanding  the  existence  of  this  new  source  of  supply  and 
the  increased  production  of  cane  sugar  in  our  insular  posses- 
sions, we  continue  to  send  $100,000,000  annually  to  foreign 
countries  for  the  purchase  of  sugar  which  can  be  produced  at 
home  to  the  great  enrichment  of  American  farmers  and  Ameri- 
can industry  generally. 


CONSUMPTION   OF  SUGAR  IN  THE  UNITED  STATES. 

The  United  States  is  the  greatest  sugar  market  in  the  world, 
its  people  annually  consuming  3,350,000  tons  of  sugar,  or  one- 
fifth  of  the  total  world  production  of  17,000,000  tons. 

Of  the  sugar  consumed  in  the  United  States,  more  than  one- 
half  is  produced  in  the  United  States  and  in  its  insular  posses- 
sions, the  balance  being  purchased  from  foreign  countries, 
mostly  from  Cuba. 


BEET    SUGAR   POSSIBILITIES    OF   THE    UNITED    STATES. 

The  well-defined  sugar-beet  area  of  the  United  States  extends 
from  Maine  to  California.  It  covers  270,000,000  acres,  and 
the  planting  of  one  of  these  acres  out  of  each  200  to  sugar 
beets  would  supply  us  with  all  the  sugar  which  we  are  now 
compelled  to  purchase   abroad. 

The   $100,000,000   which  we  send  abroad  annually  for  the 


196 


THE  DEMOCRATIC   FREE   SUGAR  BILL. 


purchase  of  sugar  which  we  could  produce  at  home  from 
1,400,000  acres  of  sugar  beets,  absorbs  the  entire  gross 
proceeds  which  our  farmers  derive  from  8,000,000  acres  of 
wheat. 


INDIRECT    AGRICULTURAL    BENEFITS    OF    SUGAR    BEET    CULTURE. 

The  annual  distribution  of  an  extra  $100,000,000  to  Ameri- 
can farmers  and  laborers  is  not  the  only,  nor  is  it  the  principal, 
gain  which  would  come  to  the  American  people  through  pro- 
ducing their  entire  sugar  supply  at  home.  Each  of  the  1382 
European  and  seventy-five  American  beet-sugar  factories  is  an 
agricultural  experiment  station  which  teaches  the  farmers 
better  methods  of  agriculture,  not  only  in  the  culture  of  sugar 
beets,  but  of  all  crops. 

The  cultivation  of  sugar  beets  not  only  provides  the  farmer 
with  one  of  his  most  profitable  money  crops,  but  it  so  pre- 
pares and  enriches  his  land  that  for  a  series  of  years  it  pro- 
duces a  greatly  increased  yield  of  all  other  crops  which  follow. 
Although  the  natural  soil  and  climatic  conditions  of  Europe 
are  greatly  inferior  to  those  of  the  United  States,  through  the 
introduction  of  sugar-beet  culture  their  worn  out  soils  have 
been  so  rejuvenated  that  they  now  produce  a  much  greater 
tonnage  of  all  crops. 

In  1909,  Germany,  the  largest  sugar  producing  country  in 
the  world,  produced  30.5  bushels  of  wheat  to  the  acre  to  our 
15.8  bushels;  59  bushels  of  oats  to  our  30.3  bushels;  39.5 
bushels  of  barley  to  our  24.3  bushels;  28.8  bushels  of  rye  to 
our  16.1  bushels,  and  208.9  bushels  of  potatoes  to  our  106.8 
bushels.  From  42,000,000  acres  devoted  to  these  five  crops  in 
1909,  German  farmers  harvested  3,000,000,000  bushels,  while 
from  92,000,000  acres  American  farmers  harvested  but  2,300,- 
000,000  bushels. 

Wherever  sugar  beets  have  been  grown  in  the  United  States 
the  yields  of  other  crops  grown  in  rotation  have  increased 
more  rapidly  than  they  increased  in  Germany,  and  oftentimes 
have  far  exceeded  the  German  yields.  If,  through  the  general 
introduction  of  sugar-beet  culture  our  worn-out  soils  were 
made  to  equal  the  German  acreage  yields,  based  on  the  United 
States  farm  value  in  1909,  without  extending  their  acreage, 
but  solely  through  the  value  of  the  excess  yield,  our  farmers 
would  be  richer  by  $1,340,000,000  a  year. 


SUGAR  BEET    INDUSTRY    INCREASES   VALUE    OF   REAL   ESTATE. 

The  location  of  beet-sugar  factories  builds  up  prosperous  com- 
munities, increases  trade  and  railroad  traffic  and  enhances  the 
value  of  both  towns  and  farm  property.  Mr.  George  K.  Holmes, 
of  the  Bureau  of  Statistics,  United  States  Department  of  Agri- 
culture, made  a  study  of  the  increase  in  farm  values  in  every 
township  in  the  United  States,  from  1900  to  1905,  and  the 
results  were  published  in  Bulletin  44  of  the  department. 
This  investigation  showed  the  following  results: 


Comparison  of  Average   Values  Per  Acre  of  Farms  Devoted  to 
General  Farming  and   to   Sugar-Beet   Growing — 1900-1905. 


General  farming. 

Sugar  beet  farms. 

1900. 

1905. 

1900. 

1905. 

California  (a) 

$42.54 
38.67 
63.02 
23.91 
30.76 
24.85 

$54.10 
49.78 
84.08 
36.70 
38.50 
38.98 

$136.80 
40.84 
111.25 
42.22 
45.55 
27.38 

$195.00 
89.03 

Utah   (a) 

150.83 

66.11 

55.00 

45.83 

(a)  Irrigated  farms  only. 


(b)  All  farms. 


THE  DEMOCRATIC   FREE   SUGAR  BILL. 


197 


UNITED  STATES  AND  EUROPEAN  COSTS  OF  LABOR  AND  BEETS. 

The  average  wage  rate  on  European  farms  and  in  European 
beet-sugar  factories  is  but  a  fraction  of  the  wage  paid  for 
corresponding  work  in  the  United  States.  In  Germany,  the 
average  factory  wage  is  70  cents  per  day,  while  in  the  United 
States  it  is  $2.7  2,  or  nearly  fourfold.  The  wage  rates  for  field 
labor  show  an  even  greater  contrast.  During  the  past  five 
years  the  average  price  of  contract  beets  throughout  Germany 
has  been  $4.49  per  2000-pound  ton  of  beets,  which  are  ma- 
terially richer  than  the  beets  grown  in  the  newer  soils  of  the 
United  States,  where  the  cost  of  beets  now  averages  $6.00  per 
ton  laid  down  at  the  factory. 


PRICE  OF  SUGAR  IN   THE  UNITED   STATES  AND   IN   EUROPE. 

While  the  present  rate  of  duty  on  sugar  is  sufficient  to 
maintain  the  beet-sugar  industry  and  encourage  its  expansion, 
it  does  not  result  in  high  prices  to  the  consumer.  In  fact, 
sugar  is  so  taxed  in  European  sugar  producing  countries  that 
both  their  wholesale  and  their  retail  prices  are  much  higher 
than  they  are  in  the  United  tSates. 

The  Department  of  Commerce  and  Labor  recently  collected 
and  published  the  wholesale  prices  of  sugar  in  various  Euro- 
pean countries  for  the  year  1910.  To  these  quotations  have 
been  added  the  London  quotation  of  Lyle's  granulated  No.  1, 
and  the  New  York  wholesale  price  of  standard  granulated 
sugar,  duty  paid.  The  quotations  show  the  average  price  for 
the  year  1910,  except  for  Italy  and  Spain,  which  are  for  the 
year  1909,  and  are  as  follows: 


Country. 

Cities  where 
quoted. 

Sugar  designated. 

Wholesale 
price  per 
pound. 

Italy  

Refined  

Prime  granulated 

Refined  

Prime  refined 

Refined  in  loaves 

Refined,  lump 

Cents. 
11.60 

Spain 

Russia  

Austria 

Barcelona   

St.   Petersburg. __ 
Vienna    

9.56 
7.77 
7.43 

6.28 

Germany   _  __ 

Magdeburg  

New   York 

Montreal    

London 

5.11 

United  States 

Canada    

Standard  hard  granulated- 
Extra  granulated  

Tate's  Cubes  No.  1 

Lyle's  granulated 

4.97 
4.96 

United  Kingdom  __. 
United  Kingdom    . 

4.67 
4.24 

It  will  be  seen  from  the  above  that  the  price  of  granulated 
sugar  is  much  higher  in  continental  Europe  than  in  the  United 
States,  and  that  in  the  United  Kingdom,  which  produces  no 
sugar,  but  purchases  its  supply  in  the  cheapest  markets  of  the 
world,  the  wholesale  price  of  granulated  sugar  was  but  a  frac- 
tion of  one  cent  per  pound  lower  than  it  was  in  New  York. 


SUGAR  PRICES   IN   THE   UNITED   STATES   AS   AFFECTED   BY   DOMESTIC 
PRODUCTION. 

In  the  fall  of  1911  it  became  apparent  that  as  a  result  of 
the  drought  in  European  sugar  producing  countries  their  sugar 
crop  would  be  short  a  million  or  more  tons,  and  the  New  York 
wholesale  price  of  refined  sugar  made  from  foreign  raw  sugar 


7  x/z  cents  per  pound  the  latter  part  of  September.  In  October 
the  domestic  beet-sugar  factories  began  operating  and  mar- 
keting their  product,  shipping  portions  of  it  to  the  Atlantic 
Coast,  with  the  result  that  the  New  York  wholesale  price  of 
imported  sugar  dropped  to  6.11  cents  in  November,  5.63  cents 
in  December,  5.38  cents  in  January,  and  5^  cents  in  February 
and  March,  thereby  saving  American  consumers  tens  of  millions 
of  dollars  on  the  1,500,000  tons  of  sugar  which  they  purchased 
during  those  few  months. 


198  THE  DEMOCRATIC   FREE   SUGAR  BILL. 

For  three  to  five  months  in  each  year  the  marketing  of 
domestic  beet  sugar  has  the  same  effect  on  the  price  of  imported 
sugar  that  the  Erie  Canal  and  the  Great  Lakes  have  on  railroad 
freight  rates.  When  navigation  opens,  freight  rates  go  down, 
and  when  navigation  closes,  freight  rates  go  up.  When 
domestic  beet  sugar  comes  onto  the  market  the  price  of 
imported  sugar  goes  down,  and  when  the  domestic  sugars  are 
sold  out  the  price  of  imported  sugar  goes  up.  If  navigation 
could  be  kept  open  continuously,  freight  rates  would  be  lower 
all  the  year  instead  of  during  a  portion  of  it,  and  if  the  home 
beet-sugar  production  was  sufficient  to  last  for  twelve  months, 
the  price  of  sugar  would  be  lower  throughout  the  year. 

To  destroy  the  domestic  beet-sugar  industry  of  the  North 
and  the  domestic  cane-sugar  industry  of  the  South,  thereby 
reducing  the  world's  production  by  nearly  one  million  tons  a 
year,  necessarily  would  raise  materially  the  world  price  of 
sugar  to  the  consumer.  Permanently  lower  prices  for  sugar 
in  the  United  States  and  freedom  from  European  speculative 
markets  can  only  be  secured  by  producing  our  sugar  under 
the  American  flag. 


Every  dollar  sent  abroad  to  purchase  goods  that  we  can  produce 
at  home  makes  us  a  dollar  the  poorer. — H.  K.  Thurber,  in  the 
"American  Economist." 

Above  all  things  we  should  avoid  the  demagogue  as  a  pestilence 
and  take  counsel  only  of  reason  and  right. — Hon.  C.  W.  Fairbanks, 
at   St.  Paul,  Minn.,  August  31,  1903. 

Laying  aside  the  fact  that  trusts  are  organized  under  English 
free  trade,  as  well  as  German,  Austrian  and  American  protection, 
it  is  susceptible  of  absolute  demonstration  that  American  free 
trade  would  operate  in  the  interests  of  trusts  and  against  the 
interest  of  American  labor. — Hon.  E.  L.  Hamilton,  in  Congress, 
April   14,   1904. 

No  matter  how  capital  combines  or  how  labor  combines  or 
how  they  differ  among  themselves,  their  interests  are  inseparable, 
and  it  ought  to  be  plain  to  both  that  they  cannot  afford  to  go  out 
of  business  in  favor  of  foreign  labor  and  foreign  capital  by 
abandoning  the  policy  of  protection. — Hon.  E.  L.  Hamilton,  in 
Congress,   April    14,   1904. 

Not  the  least  of  the  causes  of  high  cost  of  subsistence  is 
increased  price  of  land  in  the  West.  Land  that  has  grown  in 
value  from  $20  an  acre  to  $200  calls  for  a  higher  price  level  in 
the  grain  and  fruit  and  meat  that  it  yields,  or,  on  the  other  side 
of  the  equation,  the  greater  demand  for  supplies,  without  being 
accompanied  by  commensurate  supply,  raises  the  value  of  the 
source   of  the  supply. — Portland  "Oregonian." 

The  Democrats  are  a  party  having  no  solidarity,  uniting  ele- 
ments that  are  as  uu  mix  able  as  oil  and  water,  and  when  they 
come  to  make  a  government,  should  they  ever  be  elected  to  power, 
the  administration  would  become  as  nerveless  as  a  man  stricken 
with  paralysis,  because  the  radical  difference  between  the  ele- 
ments necessary  to  make  up  the  party  would  be  no  great  as  to 
produce  perfect  stagnation  in  legislative  provision  for  the  emer- 
gencies which  might  arise.  The  Democratic  party  to-day.  as 
organized,  is  nothing  but  organized  incapacity.  Neither  element 
of  the  party  would  have  a  sense  of  responsibility  strong  enough 
to  overcome  its  antagonism  to  the  principles  upheld  by  the  other 
fuction  were  it  to  come  into  power. — Hon.  Wm.  H.  Taft,  at  Mont- 
peller,    Vt. 

Compared  with  the  average  German  wnrkingmnn,  the  average 
British  workingman  is  a  pauper.  This  flat-footed  statement  is 
made  in  the  "Fortnightly  Review"  by  a  writer  who  has  taken  the 
trouble  to  investigate  1  adits t  rial  conditions  in  both  countries.  The 
results  of  his  inquiries  have  more  than  a  mere  academic  interest 
for  the  people  of  the  United  States,  because  Germans  have  no 
doubt  that  their  prosperity  is  due  to  protection,  while  a  majority  . 
of  Englishmen  believe  their  good  fortune,  so-ealled,  is  attributable 
to  free  trade.  In  Germany  protection  is  about  thirty  years  old. 
Coal  and  iron  ore  are  mined  in  both  countries.  Thirty  years  ago 
Germany  produced  about  7,000,000  tons  of  iron  ore,  as  against 
18,000,000  mined  by  Great  Britain.  In  1908  the  figures  werei 
Germany,  24,225,000;  Great  Britain.  15,031,000.  As  a  eoal  produeer 
also  the  German  is  fast  overhauling  his  British  rival.  It  would 
be  difficult  to  Imagine  anything  more  significant  than  the  records 
of  coal  consumption.  In  1SS0,  Great  Britain  consumed  72.000,000 
tons  more  than  Germany;  in  1907,  13,000,000  less.  Statistics  show 
that  for  every  unemployed  worker  in  (ieruinny  there  are  three  in 
England.  They  show  that  while  in  the  metal  trades  (ierinany  has 
found  employment  for  700,000  additional  workers,  England  has 
provided  for  but  15,000  additioas.  In  other  pursuits  the  same  story 
is   told. — Brooklyn   "Eagle,"  Democrat. 


THE  TIN-PLATE  INDUSTRY. 


Estahlished  under  McKinley  Protection,  Checked  by  Demo- 
cratic Free  Trade,  it  has  Effected  a  Savins  of  $.$5,000,000 
to  the  Country  and  Now  Gives  Employment  to  17,000 
people,    Who    Earn    $10,000,000    a    Year    in    Wages. 

By  B.  E.  V.  LUTY,  Pittsburgh. 

The  American  tin-plate  industry  is  the  best  illustration  of 
the  benefit  of  a  protective  tariff.  It  is  for  this  reason  that  it 
used  to  be  singled  out  by  the  Democrats  for  especially  vicious 
attack. 

The  protective  duty  upon  tin-plate  was  established  by  the 
McKinley  tariff  act  approved  October  1,  1890.  This  law  increased 
the  duty  from  one  cent  to  two  and  two-tenths  cents  per  pound, 
effective  July  1,  1891,  but  provided  that  upon  October  1,  1897, 
tin  plates  should  became  altogether  free  of  duty,  unless  dur- 
ing one-  of  the  fiscal  years  between  July  1,  1891,  and  July  1, 
1897,  the  quantity  of  tin-plate  made  in  the  United  States  should 
equal  one-third  of  the  tin-plate  imported  during  any  one  of 
those  years.  In  other  words,  unless  the  United  States  should 
in  the  best  of  the  six  years  make  as  much  as  one-third  of  the 
tin-plate  imported  in  the  poorest  of  those  years,  not  only  the 
protective  duty,  but  all  duty,  should  come  off.  The  requisite 
condition  was  met  by  the  fiscal  year  ended  June  30,  1895,  its 
production  having  greatly  exceeded  one-third  of  the  net  im- 
ports of  1892. 

Immediately  upon  the  enactment  of  the  McKinley  law  the 
erection  of  tin-plate  plants  began,  and  the  industry  made  rapid 
strides.  Repeated  efforts  had  been  made  to  manufacture  tin- 
plate  in  the  United  States  under  the  old  revenue  duty  of  one 
cent  a  pound,  and  these  had  all  failed.  There  was  no  question 
that  the  2.2-cent  duty  was  required  in  order  to  establish  the 
industry,  but  such  changes  occurred  that  when  the  Wilson- 
Gorman  bill  of  August  28,  1894,  reduced  the  duty,  as  of  Oc- 
tober 1,  1904,  to  1.2  cents,  the  industry  still  strove.  Great 
improvements  had  been  made  in  processes  of  manufacture, 
through  the  opportunity  afforded  to  experiment ;  hard  times  had 
brought  down  the  cost  of  steel,  and  there  were  heavy  wage 
reductions,  directly  growing  out  of  the  reduction  in  the  duty. 
A  wage  agreement  had  been  made  between  the  manufacturers 
and  the  Amalgamated  Association  of  Iron,  Steel  and  Tin  Work- 
ers for  the  year  July  1,  1894,  to  June  30,  1895,  prescribing  cer- 
tain rates  of  wages,  but  to  become  inoperative  in  case  the 
duty  on  tin-plate  should  be  reduced,  and  after  a  prolonged  strike, 
begi  lining  October  1,  1894,  there  was  a  heavy  reduction  in  tin- 
plate  wages. 

By  the  middle  of  1895  American  tin-plate  was  selling  in  many 
markets  at  less  than  the  prices  asked  for  imported  tin-plate  in 
the  same  markets.  In  some  districts,  where  the  freight  from 
American  mills  was  much  greater  than  the  freight  •from  Welsh 
mills,  the  price  of  imported  tin-plate  made  the  market,  but  as 
regards  the  bulk  of  the  tonnage  the  American  product  under- 
sold the  foreign.  This  was  with  a  duty  of  1.2  cents  a  pound, 
contrasted  with  the  old  revenue  duty  of  one  cent  a  pound.  On 
account  of  the  virtual  loss  of  the  American  market,  Welsh  tin- 
plate  was  undoubtedly  selling  at  much  lower  prices  in  all  mar- 
kets than  would  have  been  the  case  if  the  United  States  had  not 
started  to  make  tin-plate.  This  much  more  than  offset  the 
increase  in  the  duty. 

Within  a  very  few  years,  therefore,  the  reduction  in  the  Welsh 
price  of  tin-plate,  due  to  decreased  demand  from  the  loss  of 
the  American  market,  and  the  fact  of  American  tin-plate  sell- 

199 


200  THE  TIN  PLATE  INDUSTRY. 

iug  at  less  than  the  price  of  imported  tin-plate,  made  it  that 
the  American  consumer  paid  less  for  his  tin-plate,  on  an  aver- 
age, than  would  have  been  the  case  if  the  McKinley  duty  had 
not  been  enacted  and  tin-plate  manufacture  had  not  been  es- 
tablished in  the  United  States.  Since  the  time  that  the  ac- 
count balanced,  American  consumers  have  been  regularly  ob- 
taining their  tin-plate  at  much  lower  prices  than  would  have 
otherwise  prevailed. 

When  the  Ways  and  Means  Committee  was  considering  the 
tariff,  preparatory  to  the  formulation  of  the  Payne  bill  of  1909, 
the  tin-plate  manufacturers  appeared  and  voluntarily  suggested 
a  reduction  in  the  duty  from  1.5  cents  to  1.2  cents  per  pound, 
pointing  out  that  the  higher  duty  was  unnecessary  and  ineffective 
in  that  American  tin-plate  was  selling  at  so  much  less  than  the 
foreign,  but  that  a  reduction  below  1.2  cents  could  not  be  borne 
without  a  reduction  in  wages.  The  reduction  was  accordingly 
made. 

In  the  following  table  are  given  the  imports  of  tin-plate  and 
the  American  production,  in  gross  tons  of  2,240  pounds,  by  cal- 
endar years : 

Imports     Production 

1889 331.311 

1890 329,435 

1891 327,882  552 

1892 268,472  18.803 

1893 253,155  55,182 

1894 215,068  74.260 

1895 119.545  113,666 

1896 119,171  160,362 

1897 83.851  256.598 

1898 67,222  326,915 

1899 58,915  397,767 

1900 60,386         302,665 

1901 77,395         399,291 

1902 60,115  366.000 

1903 47,360  480,000 

1904 70,652  458.000 

1905 65,740  493,500 

1906 56,983  577,562 

1907 57,773  514.775 

1908 58,490         537,087 

1909 62,593         611,959 

1910 66,640         722,770 

1911 14,099       *700,000 

1912 *2,000       *800,000 

*Estimated. 

TIN-PLATE   PRICES. 

Average  yearly  price  of  J.  B.  grade  coke  tin-plates,  14  x  20  I  C, 
108  pounds,  delivered  at  New  York: 

1880 $6.75 

1881 5.45 

1882 5.30 

1883 5.10 

1884 4.70 

1885 4.40 

1886.  . .  b 4.30 

1887 4.60 

1888 4.55 

1889 4.55 

J  in  ported  Bessemer  Cokes,  14  x  20,  108  lbs. 

1890 4.80 

1891 5.34 

1892 5.30 

1893 5.37 

1894 4.89 

1895 3.87 


THE  TIN  PLATE  INDUSTRY.  201 

American  Bessemer  Cokes,  lit  x  20,  108  lbs. 

1896 3.63 

1897 3.26 

1898 2.99 

1899 4.41 

1900 4.82 

1901 4.35 

1902 4.28 

1903 4.09 

1904 3.76 

1905 3.85 

1906 . .  4.04 

1907 4.25 

1908 4.05 

1909 3.83 

1910 3.91 

1911 3.92 

1912    (on   July    1) 3.84 

Both  the  Welsh  and  American  tin-plate  makers  use  Straits  pig 
tin  for  coating.  This  commodity  averaged  15.64  cents  per  pound 
in  1898,  the  year  of  lowest  average  tin-plate  prices,  while  July  1, 
1912,  it  stood  at  47  cents.  This  advance  in  pig  tin  increased 
the  cost  of  making  a  box  of  tin-plates  by  about  70  cents,  which 
increased  cost  falls  alike  upon  Welsh  and  American  makers. 
From  the  average  price  of  tin-plate  in  1898,  $2.99,  to  the  price 
on  July  1,  1912,  $3.84,  the  advance  was  85  cents  per  box,  but  70 
cents  of  this  is  due  to  the  increased  cost  of  pig  tin ;  wages  and 
the  cost  of  various  other  supplies  have  advanced  much  more  than 
the  remaining  15  cents,  so  that  relative  to  conditions  tin-plate  is 
cheaper  even  than  in  1898,  and  it  is  of  course  very  much  cheaper 
than  in  the  years  before  tin-plate  making  was  introduced  into 
the  United  States.  It  should  be  noted,  furthermore,  that  when 
tin-plate  was  imported,  the  New  York  price  was  the  lowest  in 
the  country,  deliveries  at  inland  points  being  higher  on  account 
of  the  freight,  whereas  to-day  the  New  York  price  is  19  cents 
above  the  base  price  at  Pittsburgh. 

There  is  no  question  that  tin-plate  has  cost  the  consumer  in 
the  21  years  which  have  elapsed  since  the  McKinley  protective 
duty  was  imposed  much  less  than  if  the  protective  duty  had  not 
been  imposed  and  the  old  revenue  duty  had  been  continued. 

Tin-plate  at  Present. 

The  following  table  gives  the  cost,  delivered  Pittsburgh,  of  the 
quantity  of  tin-plate  required  to  make  the  articles  named : 

Cents. 

Ordinary   2-lb.   or  No.   2  can 0.90 

Ordinary  3-lb.  or  No.  3  can 1.28 

Half-pint  tin  cup 76 

Quart  tin  cup   1.28 

3-qt.  dinner  pail  4.25 

3-qt.  dinner  pail,  plus  1-pt.  cup 5.04 

The  tin-plate  required  for  the  famous  dinner  pail,  therefore, 
costs  only  what  the  workman  pays  for  an  ordinary  street  car 
fare. 


I  have  always  wondered  why  the  idea  of  recall  of  judges 
was  not  carried  out  to  its  logical  consequences.  If  we,  the 
people,  are  to  have  the  right  to  protect  ourselves  in  this 
fashion  against  erring-  judges,  why  would  it  not  he  more 
safe  to  compel  a  court,  before  it  renders  "its  decision,  to 
announce  to  the  people  what  it  is  about  to  do,  in  order 
that  opportunity  may  be  given  to  recall  the  judges  be- 
fore the  mischief  is  done?  That  would  be  consistent  with 
the  main  idea,  and  would  ultimately  dispense  with  the 
necessity   for   having   any   courts   at   all. — Hou.    Charles   Navel. 


CAMPAIGN  CONTRIBUTIONS  AND  PUB- 
LICITY,  WITH  REFERENCE  TO  RE- 
CEIPTS AND  EXPENDITURES. 


Much  is  still  said  upon  the  question  of  campaign  contribu- 
tions and  publicity  with  reference  thereto.  A  careful  analysis, 
however,  of  the  utterances  and  pledges  of  the  two  parties  upon 
this  subject  shows  that  the  Democratic  xjromises  have  been  in 
all  cases  vague  and  specious,  and  in  such  terms  as  to  really  sup- 
ply little  of  the  publicity  which  they  purport  to  supply ;  while 
the  Republicans  have  already  actually  prohibited,  through  Re- 
publican legislation  in  Congress,  corporation  contributions  to 
campaign  funds  and  provided  for  absolute  publicity  far  in  excess 
of  that  vaguely  promised  by  the  Democratic  candidate  and  com- 
mittee. 

The    Bryan-Taft    Correspondence    on    Publicity. 

The  public  campaign  for  publicity  was  begun  by  Mr.  Bryan, 
when  on  May  27,  1908,  he  sent  to  Mr.  Taft  the  following  tele- 
gram : 

"I  beg  to  suggest  that,  as  leading  candidates  in  our  respective  parties, 
we  join  in  asking  Congress  to  pass  a  bill  requiring  publication  of  campaign 
contributions  prior  to  election.  If  you  think  best  we  can  ask  other  candi- 
dates to  unite  with  us  in  the  request." 

To  this  Mr.  Taft  replied  : 

"Your  telegram  received.  On  April  30th  last,  I  sent  the  following  letter 
to  Senator  Burrows,  the  Chairman  'of  the  Committee  on  Privileges  and 
Elections  of  the  Senate  : 

"'My  dear.  Mr.  Burrows:  I  sincerely  believe  that  it  would  greatly  tend 
to  the  absence  of  corruption  in  politics  if  the  expenditures  for  nomination 
and  election  of  all  candidates  and  all  contributions  received  and  expendi- 
tures made  by  political  committtees  could  be  made  public,  both  in  respect 
to  State  and  National  politics.  For  that  reason  I  am  strongly  in  favor  of 
the  passage  of  the  bill  which  is  now  pending  in  the  Senate  and  House, 
bringing  about  this  result  so  far  as  national  politics  is  concerned.  I  mark 
this  letter  personal  because  I  am  anxious  to  avoid  assuming  an  attitude  in 
the  campaign  which  it  is  quite  possible  I  shall  never  have  the  right  fc> 
assume,  but  so  far  as  my  personal  influence  is  concerned  I  am  anxious  to 
give  it  for  the  passage  of  the  bill. 

"  'Very  sincerely  yours,  WILLIAM  H.  TAFT.'  " 

"Since  writing  the  above,  in  answer  to  inquiry,  I  have  said  publicly 
that  I  hoped  such  a  bill  would  pass." 

Corporation    Contributions. 

The  next  step  in  the  Democratic  campaign  with  reference  to 
election  funds  was  the  insertion  in  their  platform  adopted  at 
Denver  in  July,  1908,  of  the  following  plank : 

"We  pledge  the  Democratic  Party  to  the  enactment  of  a  law  prohibiting 
any  corporation  from  contributing  to  the  compaign  fund,  and  any  individ- 
ual from  contributing  an  am'ount  above  a  reasonable  amount  and  providing 
for  the  publication   before   election   of  all  contributions   above   a   reasonable 

minimum." 

In  taking  this  second  step  with  reference  to  campaign  funds 
and  pledging  the  Democratic  Party  to  the  enactment  of  a  law 
prohibiting  any  corporation  from  contributing  to  the  campaign 
in iid,  Mr.  Bryan  and  his  associates  seem  quite  as  late  as  Mr. 
Urvan  was  personally  in  his  proposal  to  Mr.  Taft.  si  nee  it  is 
a  fact  that  the  Republican  Party  in  Congress  had,  more  than 
a  near  Ix'forr  lite  meeting  Of  the  Democratic  convention,  passed 
in  both  houses  and  enacted  into  law  the  very  proposition  which 
the  Democracy  pledged  themselves  to  accomplish,  viz.:  "prohib- 
iting any  cbrp^ration  from  contributing  to  a  campaign  fund." 
The  law  enacted  by  a  Republican  House  and  a  Republican  Senate 
in  January,  1907,  and  signed  by  a  Republican  President  on  Jan- 

202 


CAMPAIGN  CONTRIBUTION'S  AND  PUBLICITY.  203 

nary  26,  1907,  did  the  very  thing-  demanded  by  the  Democra lie- 
convention  of  1908,  and  did  it  eighteen  months  prior  to  the 
meeting  of  that  convention.  The  Act  passed  in  January,  1907, 
by  a  Republican  House  and  a  Republican  Senate  and  signed  by 
a   Republican   President   January   26,    1907,   is   as   follows : 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  United 
States  of  America  in  Congress  assembled,  That  it  shall  be  unlawful  for  any 
national  bank  or  any  corporation  organized  by  authority  of  any  laws  of 
Congress  to  make  a  money  contribution  in  connection  with  any  election  to 
any  political  office.  It  shall  also  be  unlawful  for  any  corporation  whatever 
to  make  a  money  contribution  in  connection  with  any  election  at  which 
Presidential  and  Viee-Presidt  ntial  electors  or  a  Representative  in  Congress 
is  to  be  voted  for  or  any  election  by  any  State  Legislature  of  a  United 
States  Senator.  Every  corporation  which  shall  make  any  contribution  in 
violation  of  the  foregoing  provisions  shall  be  subject  to  a  fine  not  exceeding 
five  thousand  dollars,  and  every  officer  or  director  of  any  corporation  who 
shall  consent  to  any  contribution  by  the  corporation  in  violation  of  the 
foregoing  provisions  shall  upon  conviction  be  punished  by  fine  of  not 
exceeding  one  thousand  and  not  less  than  two  hundred  and  fifty  dollars, 
or  by  imprisonment  for  a  term  of  not  more  than  one  year,  or  both  such 
fine   and    imprisonment   in    the  discretion   of  the   court. 

Thus  in  the  second  step  in  the  Democratic  campaign  with 
reference  to  political  funds,  they  find  themselves  following  along 
lines  in  which  the  Republicans  had  already  taken  action. 


Publicity  Before  Election. 

Not  only  had  the  Republicans  long  before  this  recommen- 
dation of  the  Democratic  National  Convention  enacted  a  law 
prohibiting  corporation  contributions  to  campaign  funds,  but 
the  Republican  Party  in  the  House  had,  by  unanimous  vote  of  its 
members,  passed  an  act  requiring  complete  publicity  of  all  cam- 
paign contributions,  this  publicity  to  be  made  through  state- 
ments filed  with  the  Clerk  of  the  House  of  Representatives 
NOT  LESS  THAN  TEN  DAYS  BEFORE  I  HE  ELECTION  FOR 
WHICH  THESE  FUNDS  WERE  CONTRIBUTED.  Every  vote 
cast  for  this  bill  was  cast  by  a  Republican,  and  every  vote  cast 
ar/ainst  it  was  cast  by  a  Democrat. 

While  the  Democratic  vote  was  ostensibly  cast  against  the 
bill  because  of  the  fact  that  it  required  a  report  from  the  Census 
with  reference  to  the  number  of  votes  cast  in  Southern  States 
and  a  comparison  thereof  with  the  number  of  white  and  colored 
citizens  of  voting  age,  the  fact  remains  that  the  Democratic 
party  in  Congress,  irrespective  of  sectional  lines,  preferred  to 
sacrifice  complete  publicity  in  campaign  contributions  and  ex- 
penditures rather  than  couple  with  it  publicity  regarding  the 
suppression,  by  their  own  party  leaders,  of  the  elective  franchise 
as  guaranteed  by  the  Constitution  of  the  United  States. 

The  Publicity   Bill   Pasxed  by  Republican  Votes   in  tbe  House 
and   Opposed  by   all   Democrats. 

A  bill  (H.  R.  20112)  providing  for  publicity  of  contributions 
made  for  the  purpose  of  influencing  elections  at  which  Repre- 
sentatives in  Congress  are  elected,  prohibiting  iraud  in  regis- 
trations and  elections,  and  providing  data  for  the  apportion- 
ment of  Representatives  among  the   States. 

Be  it  enacted,  etc.,  That  the  term  "political  committee"  under  the  pro- 
visions of  this  act  shall  include  the  national  committees  of  all  political 
parties  and  the  national  Congressional  campaign  committees  of  all  politi- 
cal parties  and  all  committees,  associations,  or  organizations  which  shall 
in  two  or  more  States  influence  the  result  or  attempt  to  influence  the 
result  of  an  election  at  which  Representatives  in  Congress  are  to  be 
elected. 

Sec  2.  That  every  political  committee  as  defined  in  this  act  shall 
have  a  chairman  and  a  treasurer.  It  shall  be  the  duty  of  the  treasurer 
to  keep  a  detailed  and  exact  account  of  all  money  or  its  equivalent  re- 
ceived by  or  promised  to  such  committee  or  any  member  thereof,  or  by 
or  to  any  person  acting  under  its  authority  in  its  behalf,  and  the 
name  of  every  person,  firm,  association,  or  committee  from  whom  re- 
ceived, and  of  all  expenditures,  disbursements,  and  promises  of  pay- 
ment or  disbursement  made  by  the  committee  or  any  member  thereof, 
or  by  any  person  acting  under  its  authority  or  in  its  behalf,  and  to  whom 
paid,  distributed,  or  disbursed.  No  officer  or  member  of  such  committee,  or 
other  person  acting  under  its  authority  or  in  its  behalf,  shall  receive  any 
money  or  its  equivalent,  or  expend  or  promise  to  expend  any  money  on  be- 


204  CAMPAIGN  CONTRIBUTIONS  AND  PUBLICITY. 

half  of  such  committee  until  after  a  chairman  and  treasurer  of  such  com- 
mittee  shall  have   been   chosen. 

Sec.  3.  That  every  payment  or  disbursement  made  by  a  political  com- 
mittee exceeding  $10  in  amount  be  evidenced  by  a  receipted  bill  stating  the 
particulars  of  expense,  and  every  such  record,  voucher,  receipt,  or  ac- 
count shall  be  preserved  for  fifteen  months  after  the  election  to  which  it 
relates. 

Sec.  4.  That  whoever,  acting  under  the  authority  or  in  behalf  of 
such  political  committee,  whether  as  a  member  thereof  or  otherwise,  re- 
ceives any  contribution,  payment,  loan,  gift,  advance,  deposit,  or  promise 
of  money  or  its  equivalent,  shall,  on  demand,  and  in  any  event  within  five 
days  after  the  receipt  of  such  contribution,  payment,  loan,  gift,  advance,  de- 
posit, or  promise,  render  to  the  treasurer  of  such  political  committee  a 
detailed  account  of  the  same,  together  with  the  name  and  address  from 
whom  received,  and  said  treasurer  shall  forthwith  enter  the  same  in  a 
ledger  or  record  to  be  kept  by  him  for  that  purpose. 

Sec.  5.  That  the  treasurer  of  such  political  committee  shall,  not  more 
than  fifteen  days  and  not  less  than  ten  days  before  an  election  at  which 
Representatives  in  Congress  are  to  be  elected  in  two  or  more  States,  file 
in  the  office  of  the  Clerk  of  the  House  of  Representatives  at  Washington, 
D.  C,  with  said  Clerk,  an  itemized  detailed  statement,  sworn,  to  by  said 
Treasurer  and  conforming  to  the  requirements  of  the  following  section  of 
this  act.  It  shall  also  be  the  duty  of  said  treasurer  to  file  a  similar  and 
final  statement  with  said  Clerk  within  thirty  days  after  such  election,  such 
final  statement  also  to  be  sworn  to  by  said  treasurer,  and  to  conform  to 
the  requirements  of  the  following  section  of  this  act.  The  statements  "so 
filed  with  the  Clerk  of  the  House  shall  be  preserved  by  him  for  fifteen 
months,  and  shall  be  a  part  of  the  public  records  of  his  office,  and  shall 
be   open   to  public   inspection. 

Sec.  6.  That  the  statements  required  by  the  preceding  section  of  this 
act  shall  state : 

First.  The  name  and  address  of  each  person,  firm,  association,  'or  com- 
mittee who  or  which  has  contributed,  promised,  loaned,  or  advanced  to 
such  political  committee,  or  any  officer,  member,  or  agent  thereof,  either  in 
one  or  more  items,  money  or  its  equivalent  of  the  aggregate  amount  'or 
value  of  $100  or  more  ; 

Second.  The  total  sum  contributed,  promised,  loaned,  or  advanced  to 
such  political  committee,  or  to  any  officer,  member,  or  agent  thereof,  In 
amount  less  than  $100  ; 

Third.  The  total  sum  of  all  contributions,  promises  .loans,  and  advances 
received  by  such  political  committee  or  any  officer,  member,  or  agent 
thereof; 

Fourth.  The  name  and  address  of  each  person,  firm,  association,  or  com- 
mittee to  whom  such  political  committee,  or  any  officer,  member,  or  agent 
thereof,  has  disbursed,  distributed,  contributed,  loaned,  advanced,  or  prom- 
ised any  sum  of  money  or  its  equivalent  of  the  amount  or  value  of  $10  or 
more,    and   the   purpose  thereof ; 

Fifth.  The  total  sum  disbursed,  distributed,  contributed,  loaned,  advanced, 
or  promised  by  such  political  committee,  or  any  officer,  member,  or  agent 
thereof,  where  the  amount  or  value  of  such  disbursement,  distribution,  loan, 
advance,  or  promise  to  any  one  person,  firm,  association,  or  committee  In 
one  or  more   items   is  less  than   $10  ; 

Sixth.  The  total  sum  disbursed,  distributed,  contributed,  loaned,  advanced, 
or  promised  by  such  political  committee  or  any  officer,  member,  or  agent 
thereof. 

Sec.  7.  That  every  person,  firm,  association,  or  committee,  except  po- 
litical committees  as  hereinbefore  defined,  that  shall  expend  or  promise  any 
sum  of  money  or  other  thing  of  value  amounting  to  $50  or  more  for  the 
purpose  of  influencing  or  controlling,  in  two  or  more  States,  the  result  of 
an  election  at  which  Representatives  to  the  Congress  of  the  United  States 
are  elected,  unless  he  or  it  shall  contribute  the  same  to  a  political  com- 
mittee as  hereinbefore  defined,  shall  file  the  statements  of  the  same  under 
oath  as  required  by  section  6  of  this  act  in  the  office  of  the  Clerk  of  the 
House  of  Representatives,  at  Washington,  D.  C,  which  statements  shall  be 
held  by  said  clerk  in  all  respects  as  required  by  section  5  'of  this  act. 

Sec.  8.  That  any  person  may  in  connection  with  such  election  incur 
and  pay  from  his  own  private  funds  for  the  purpose  of  influencing  or  con- 
trolling, in  two  'or  more  States,  the  result  of  an  election  at  which  Repre- 
sentatives to  the  Congress  of  the  United  States  are  elected,  all  personal 
expenses  for  his  traveling  and  for  purposes  incidental  to  traveling,  for 
stationery  and  postage,  and  for  telegraph  and  telephone  service,  without 
being  subject  to  the  provisions  of  this  act. 

Sec.  9.  That  the  foregoing  provisions  of  this  act  shall  not  apply  to  the 
proprietors  and  publishers  of  publications  issued  at  regular  intervals  in 
respect  to  the  ordinary  conduct  'of  their  business,  and  nothing  contained  in 
this  act  shall  limit  or  affect  the  right  of  any  person  to  spend  money  for 
proper  legal  expenses  in  maintaining  or  contesting  the  results  of  any  elec- 
tion. 

Sec.  10.  That  every  person  willfully  violating  any  of  the  foregoing 
provisions  of  this  act  shall,  upon  conviction,  be  fined  not  more  than  $1,000 
Or  imprisoned  not  more  than  one  year,  or  both. 

Sec.  11.  That  if,  at  any  election  for  Representative  or  Delegate  in  Con- 
gress, or  at  any  primary  election  for  the  nomination  of  a  candidate  for 
Representative  or  Delegate  in  Congress  held  in  pursuance  'of  State  or 
Territorial  law,  any  person  knowingly  personates  and  votes,  or  attempts 
to  vote,  in  the  name  of  any  other  person,  whether  living,  dead,  or  fictitious ; 
or  votes,  more  than  once  at  the  same  election,  or  primary  election,  for  any 


CAMPAIGN  CONTRIBUTIONS  AND  PUBLICITY.  205 

candidate  for  the  same  office ;  or  votes  at  a  place  where  he  may  not  be 
lawfully  entitled  to  vote  ;  or  votes  without  having  a  lawful  right  to  vote  ; 
or  does  any  unlawful  act  to  secure  an  opportunity  to  Vote  for  himself,  or 
any  other  person  ;  or  by  force,  threat,  intimidation,  bribery,  reward,  of 
offer  thereof,  unlawfully  prevents  any  qualified  voter  of  any  State  or  of 
any  Territory  from  freely  exercising  the  right  of  suffrage,  or  by  any  such 
means  induces  any  voter  to  refuse  to  exercise  such  right,  or  compels  or  In- 
duces by  any  such  means  any  officer  of  an  election  or  primary  election  in 
any  such  State  or  Territory  to  receive  a  vote  from  a  person  not  legally 
qualified  or  entitled  to  vote,  or  interferes  in  any  manner  with  any  'officer 
of  such  election  or  primary  election  in  the  discharge  of  his  duties,  or  by  any 
such  means  or  other  unlawful  means  induces  any  officer  'of  an  election 
or  primary  election,  or  officer  whose  duty  it  is  to  ascertain,  announce,  or 
declare  the  result  of  such  election  or  primary  election,  or  give  or  make 
any  certificate,  document  ,or  evidence  in  relation  thereto,  to  violate  or  re- 
fuse to  comply  with  his  duty  or  any  law  regulating  the  same,  or  knowingly 
receives  the  vote  of  any  person  not  entitled  to  vote,  or  refuses  to  receive 
the  vote  of  any  person  entitled  to  vote,  or  aids,  counsels,  procures,  or  ad- 
vises any  such  voter,  person,  or  officer  to  do  any  act  hereby  made  a  crime 
or  omit  to  do  any  duty  the  omission  of  which  is  hereby  made  a  crime, 
or  attempts  to  do  so,  he  shall  be  punished  by  a  fine  of  not  more  than  $500 
or  by  imprisonment  not  more  than  three  years,  or  by  both,  and  shall  pay 
the  costs  of  the  prosecution. 

Sec.  12.  That  if  at  any  registration  of  voters  for  an  election  for  Rep- 
resentative or  Delegate  in  Congress,  or  for  any  primary  election  for  the 
nomination  of  a  candidate  for  Representative  or  Delegate  in  Congress  held 
in  pursuance  of  State  or  Territorial  law,  any  person  knowingly  personates 
and  registers,  or  attempts  to  register  in  the  name  of  any  other  person, 
whether  living,  dead,  or  fictitious,  or  fraudulently  registers  or  fraudulently 
attempts  to  register,  not  having  a  lawful  right  so  to  do,  or  does  any  unlaw- 
ful act  to  secure  registration  for  him  or  any  other  person,  or  by  force, 
threat,  menace,  intimidation,  bribery,  reward,  or  offer,  or  promise  thereof, 
or  other  unlawful  means,  prevents  or  hinders  any  person  having  a  lawful 
right  to  register  from  duly  exercising  such  right,  or  compels  or  induces 
by  any  of  such  means,  or  other  unlawful  means,  any  officer  of  registration 
to  admit  to  registration  any  person  not  legally  entitled  thereto,  or  inter- 
feres in  any  manner  with  any  officer  of  registration  in  the  discharge  of  his 
duties,  or  by  any  such  means,  or  other  unlawful  means,  induces  any  officer 
of  registration  to  violate  or  refuse  to  comply  with  his  duty  or  any  law  regu- 
lating the  same,  or  if  any  such  officer  knowingly  and  willfully  registers  as 
a  voter  any  person  not  entitled  to  be  registered,  or  refuses  to  so  register 
any  person  entitled  to  be  registered,  or  if  any  such  officer  or  other  person 
who  has  any  duty  to  perform  in  relation  to  such  registration  or  election 
or  primary  election,  in  ascertaining,  announcing  or  declaring  the  result 
thereof,  or  in  giving  or  making  any  certificate,  document,  or  evidence  in 
relation  thereto,  knowingly  neglects  or  refuses  to  perform  any  duty  required 
by  law,  or  violates  any  duty  imposed  by  law,  or  does  any  act  unauthorized 
by  law  relating  to  or  affecting  such  registration  or  election  or  primary 
election,  or  the  result  thereof,  of  any  certificate,  document,  or  evidence  in 
relation  thereto,  or  if  any  person  aids,  counsels,  procures,  or  advises  any 
such  voter,  person,  or  officer  to  do  any  act  hereby  made  a  crime,  or  to  omit 
any  act  the  omission  of  which  is  hereby  made  a  crime,  every  such  person 
shall  be  punished  by  a  fine  of  not  more  than  $500  or  by  imprisonment  not 
more  than  three  years,  or  by  both,  and  shall  pay  the  c'osts  of  the  prosecu- 
tion. 

Every  registration  made  under  the  laws  of  any  State  or  Territory  for 
any  State  or  other  election,  or  primary  electron  at  which  such  Representa- 
tive or  Delegate  in  Congress  may  be  nominated  or  elected,  shall  be  deemed 
to  be  a  registration  within  the  meaning  of  this  section,  notwithstanding 
such  registration  is  also  made  for  the  purposes  of  any  State,  Territorial,  or 
municipal  election,  or  primary  election. 

Sec.  13.  That  every  officer  of  an  election  at  which  any  Representative 
or  Delegate  in  Congress  is  voted  for,  or  any  primary  election  for  the  nomi- 
nation of  a  candidate  for  Representative  or  Delegate  in  Congress,  whether 
such  officer  of  election  be  appointed  or  created  by  or  under  any  law  or 
authority  of  the  United  States,  or  by  or  under  any  State,  Territorial,  dis- 
trict, or  municipal  law  or  authority,  who  neglects  or  refuses  to  perform  any 
duty  in  regard  to  such  election  or  primary  election  required  of  him  by  any 
law  of  the  United  States,  or  of  any  State  or  Territory  thereof,  or  who 
violates  any  duty  so  imposed,  or  who  knowingly  does  any  acts  thereby  un- 
authorized wth  intent  to  affect  any  such  election  or  primary  election  or  the 
result  thereof,  or  who  fraudulently  makes  any  false  certificate  of  the  result 
of  such  election  or  primary  election  in  regard  to  such  Representative  or 
Delegate,  or  who  withholds,  conceals,  or  destroys  any  certificate  of  record 
so  required  by  law  respecting  the  election  of  any  such  Representative  or 
Delegate  or  primary  election  for  the  nomination  of  a  candidate  for  such 
Representative  or  Delegate,  or  who  neglects  or  refuses  to  make  and  return 
such  certificate  as  required  by  law,  or  who  aids,  counsels,  procures,  or  ad- 
vises any  voter,  person,  or  officer  to  do  any  act  by  sections  11  or  12  thereof 
made  a  crime,  or  to  omit  to  do  any  duty  the  omi-sion  of  which  is  by  this 
or  any  of  such  sections  made  a  crime,  or  attempts  to  do  so,  shall  be  pun- 
ished by  a  fine  of  not  more  than  ''500  or  by  imprisonment  not  more  than 
three  years,  or  by  both,  and  shall  pay  the  costs  of  the  prosecution. 

Sec.  14.  That  for  the  purpose  of  enabling  Congress  to  apportion  Rep- 
representatives  among  the  several  States  in  accordance  with  he  plan  pro- 
vided in  the  second  section  of  the  fourteenth  amendment  to  the  Constitution, 
the  Director  of  the  Census,  as  soon  as  practicable  after  each  decennial  cen- 
sus of  population,  shall  submit  to  Congress  a  report  of  the  population  py 
States  as  shown  by  such  census,  which  report  shall  also  show  the  number 
of  male  citizens,  white  and  colored,  respectively,  in  each  State,  21  years 
of  age  and  over,  the  number  of  such  male  citizens  in  each  State  found  to 
be  illiterate,  the  number  of  votes  cast  by  male  citizens  in  each  Congressional 


,iOG  CAMPAIGN  COOTPRIBTTIONS  A\T>   ITi'.I.iriTV. 

district  at  the  last  preceding  general  election,  the  number  of  such  male 
citizens  in  each  State  that  had  not  complied  with  the  registration  and  elec- 
tion laws  therein  requiring  the  payment  of  a  poll  or  property  tax  as  a  con- 
dition precedent  to  the  right  to  register  or  vote,  and  the  number  of  such 
male  citizen  in  each  State  to  whom  the  right  to  vote  at  any  election  for 
the  choice  of  electors  for  President  and  Vice-President  of  the  United  States, 
Representatives  in  Congress,  the  executive  and  judicial  offices  'of  the  State 
or  members  of  the  Legislature  thereof,  has  been  denied  or  in  any  way 
abridged    except    for    partit  ipation    in    crime. 

Srcc.  15.  That  all  prosecutions  under  this  act  shall  be  commenced  within 
one  year  after  the  commission  of  the  offense,  and  shall  be  brought  in  the 
In i red  States  circuit  court  within  the  district  in  which  such  offense  oc- 
curred. 

The  bill  passed  the  Republican  House,  the  Republicans  voting 
sol  idly, in  the  affirmative,  including-  the  Speaker,  the  Democrats 
in  the  negath re. 

In  the  Senate  the  bill  was  referred  to  the  Committee  on  Privi- 
leges and  Elections  and  was  not  reported  because  of  the  threat 
of  Democratic  Senators  that  they  would  filibuster  and  kill  it  by 
talking  it  to  death. 

New  York  World  of  May  28,  1908,  says  of  the  Democratic 
vote  in  the  House  of  Representatives  against  the  bill  providing 
for  the   publicity   of   campaign   contributions: 

"They  proved  by  their  votes  that  they  are  much  less  agitated 
about  full  publicity  of  campaign  contributions  than  about  full 
publicity  of  negro  disfranchisement." 

The  bill  in  the  much  amended  form,  as  finally  passed  by  the 
Senate  and  enacted  into  law,  is  as  follows.  It  became  a  law 
by  the  signature  of  President  Taft  on  June  25,   1910: 

An  Act  providing  for  publicity  of  contributions  made  for  the  purpose  of 
influencing  elections   at  which  Representatives  in  Congress   are  elected. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  United 
States  of  America  in  Congress  assembled.  That  the  term  "political  commit- 
tee under  the  provisions  of  this  act  shall  include  the  national  committees 
of  all  political  parties  and  the  national  congressional  campaign  com- 
mittees of  all  political  parties  and  all  committees,  associations,  or  organi- 
zations which  shall  in  two  or  more  States  influence  the  result  or  attempt 
to  influence  the  result  of  an  election  at  which  Representatives  in  Con- 
gress are  to   be  elected. 

Sec.  2.  That  every  political  committee  as  defined  in  this  act  shall  have 
a  chairman  and  a  treasurer.  It  shall  be  the  duty  of  the  treasurer  to 
keep  a  detailed  and  exact  account  of  all  money  or  its  equivalent  received 
by  or  promised  to  such  committee  or  an>  member  thereof,  or  by  or  to 
any  person  acting  under  its  authority  or  in  its  behalf,  and  the  name 
of  every  person,  firm,  association,  or  committee  from  whom  received,  and 
of  all  expenditures,  disbursements  and  promises  of  payment  or  disburse- 
ment made  by  the  committee  or  any  member  thereof,  or  by  any  person 
acting  under  its  authority  or  in  its  behalf,  and  to  whom  paid,  distributed, 
or  disbursed.  No  officer  or  member  of  such  committee,  or  ether  person 
acting  under  its  authority  or  in  its  behalf,  shall  receive  any  money  or  its 
equivalent,  'or  expend  or  promise  to  expend  any  money  on  behalf  of  such 
committee,  until  after  a  chairman  and  treasurer  of  such  committee  shall 
have  been   chosen. 

Sec  3.  That  every  payment  or  disbursement  made  by  a  political  com- 
mittee exceeding  ten  dollars  in  amount  be  evidenced  by  a  receipted  bill 
stating  the  particulars  of  expense,  and  every  such  record,  voucher,  re- 
ceipt, or  account  shall  be  preserved  for  fifteen  months  after  the  election 
to    which    it    relates. 

Sec  4.  That  whoever,  acting  under  the  authority  or  in  behalf  of  such 
political  committee,  whether  as  a  member  thereof  or  otherwise,  receives  any 
contribution,  payment,  loan,  gift,  advance,  deposit,  or  promise  of  money  or 
its  equivalent  shall,  on  demand,  and  in  any  event  within  five  days  after 
the  receipt  of  such  contribution,  payment,  loan,  gift,  advance,  deposit,  or 
promise,  render  to  the  treasurer  of  such  political  committee  a  detailed 
account  of  the  same,  together  with  the  name  and  address  from  whom 
received,  and  said  treasurer  shall  forthwith  enter  the  same  In  a  ledger 
or  record  to  be  kept  by  him   for  that  purpose. 

Sec  5.  That  the  treasurer  of  every  such  political  committee  shall, 
within  thirty  days  after  the  election  at  which  representatives  in 
Congress  were  chosen  in  two  or  more  States,  file  with  the  Clerk  of 
the  H'ouse  of  Representatives  at  Washington,  District  of  Columbia,  an 
itemized,  detailed  statement,  sworn  to  by  said  treasurer  and  conforming 
to  the  requirements  of  the  following  section  of  this  act.  The  statements 
so  filed  with  the  Clerk  of  the  House  of  Representatives  shall  be  preserved 
by  him  for  fifteen  months,  and  shall  be  a  part  of  the  public  records 
of   his  'office,    and   shall   be   open    to   public   inspection. 

Sec  6.  That  the  statements  required  by  the  preceding  section  of  this 
act  shall   state  : 

First.  The  name  and  address  of  each  person,  firm,  association,  or 
committee  who  or  which  has  contributed,  promised,  loaned,  or  advanced 
to  such  political  committee,  or  any  officer,  member,  or  agent  thereof, 
either  in  one  or  more  items,  money  or  its  equivalent  of  the  aggregate 
amount  or  value  of  one   hundred  dollars  or  more. 


CAMPAIGN  CONTRIBUTIONS  AND  PUBLICITY.  207 

Second.  The  total  sum  contributed,  promised,  loaned  or  advanced  to  such 
political  committee,  or  to  any  officer,  member  or  agent  thereof,  in  amounts 
less  than  one  hundred   dollars. 

Third.  The  total  sum  of  all  contributions,  promises,  loans,  and  ad- 
vances received  by  such  political  committee  or  any  officer,  member,  'or 
agent  thereof. 

Fourth.  The  name  and  address  of  each  person,  firm,  association,  Or 
committee  to  whom  such  political  committee  or  any  officer,  member,  or 
agent  thereof  has  disbursed,  distributed,  contributed,  loaned,  advanced, 
or  promised  any  sum  of  money  or  its  equivalent  of  the  amount  or  value 
of   ten    dollars   or   more,    and   the    purpose   thereof. 

Fifth.  The  total  sum  disbursed,  distributed,  contributed,  loaned,  ad- 
vanced, or  promised  by  such  political  committee  or  any  officer,  member, 
or  agent  thereof,  where  the  amount  or  value  of  such  disbursement,  dis- 
tribution, loan,  advance,  or  promise  to  any  one  person,  firm,  association, 
or  committee  in  one  or  more  items  is  less  than  ten  dollars. 

Sixth.  The  total  sum  disbursed,  distributed,  contributed,  loaned,  ad- 
vanced, or  promised  by  such  political  committee  or  any  officer,  member, 
or   agent    thereof. 

Sec.  7.  That  every  person,  firm,  association,  or  committee,  except 
political  committees  as  hereinbefore  defined,  that  shall  expend  or  promise 
any  sum  of  money  or  other  thing  of  value  amounting  to  fifty  dollars  or 
more  for  the  purpose  of  influencing  or  controlling,  in  two  or  more 
States,  the  result  of  an  election  at  which  Representatives  to  the  Con- 
gress of  the  United  States  are  elected,  unless  he  or  it  shall  contribute 
the  same  to  a  political  committee  as  hereinbefore  defined,  shall  file  the 
statements  of  the  same  under  oath,  as  required  by  section  six  of  this 
act,  in  the  office  of  the  Clerk  of  the  House  of  Representatives,  at  Wash- 
ington, District  of  Columbia,  which  statements  shall  be  held  by  said 
Clerk  in  all   respects  as  required  by  section  five  of  this  act. 

Sec.  8.  That  any  person  may  in  connection  with  such  election  Incur  and 
pay  from  his  own  private  funds  for  the  purpose  of  influencing  or  con- 
trolling, in  two  or  more  States,  the  result  of  an  election  at  which 
Representatives  to  the  Congress  of  the  United  States  are  elected  all 
personal  expenses  for  his  traveling  and  for  purposes  incidental  to  travel- 
ing, for  stationery  and  postage,  and  for  telegraph  and  telephone  ser- 
vice without  being  subject   to  the  provisions  of  this  act. 

Sec.  9.  That  nothing  contained  in  this  act  shall  limit  or  affect  the 
right  of  any  person  to  spend  money  for  proper  legal  expenses  in  main- 
taining or  contesting  the  results  of  any  election. 

Sec.  10.  That  every  person  wilfully  violating  any  of  the  foregoing 
provisions  of  this  act  shall,  upon  conviction,  be  fined  not  more  than 
One    thousand    dollars    or    imprisoned   not   more    than    one    year,    or   both. 

Approved,    June   25,    1910. 

The  present  Congress  has  followed  about  the  same  course  with 
reference  to  this  subject  as  on  all  other  vital  subjects ;  it  did 
just  enough  to  make  a  noise  about,  but  not  enough  to  make  a 
law.  The  Democratic  House  passed  a  bill  based  in  part  on  that 
passed  by  the  Kepublican  House  two  years  ago,  including  the 
publicity-before-election  proposition,  but  carefully  excluding  the 
feature  which  provided  for  an  adjustment  of  the  representa- 
tion in  Congress  based  upon  the  number  of  votes  cast — for  no 
Southern  Democrat  would  agree  to  that.  A  large  proportion  of 
the  Republicans  in  the  House  voted  for  the  bill,  however,  but  it 
has  not  yet  been  acted  upon  in  the  Senate,  and  therefore  prac- 
tically all  the  legislation  now  on  the  statute  books  providing 
for  publicity  as  to  campaign  funds  and  expenses  is  the  work  of 
the  Republican  party. 

Concerning  campaign  contributions  the  Republican  platform 
of  1912  says: 

"We  favor  such  additional  legislation  as  may  be  necessary  more  effec- 
tually to  prohibit  corporations  from  contributing  funds,  directly  or  indi- 
rectly, to  campaigns  for  the  nomination  or  election  of  the  Presid3nt,  the 
Vice-President,    Senators   and    Representatives    in   Congress. 

"We  heartily  approve  the  recent  act  of  Congress,  requiring  the  fullest 
publicity  in  regard  to  all  campaign  contributions  whether  made  in  connec- 
tion with  primaries,  conventions  or  elections." 

The  Democratic  plank  of  1912  is  as  follows : 

"We  pledge  the  Democratic  Party  to  the  enactment  of  a  law  prohibiting 
any  corporation  from  contributing  to  a  campaign  fund  and  any  individual 
from  contributing  any  amount  above  a  reasonable  maximum." 


While  this  is  a  big  country,  it  is  not  now,  and  may  it  never  be, 
big  enough  knowingly  to  admit  into  the  ranks  of  its  citizenship 
any  avowed  disOrganlzer  ol  government  or  any  avowed  scoffer  at 
our  republican  institutions.  But  our  hands  are  outstretched  to 
those  who  come  to  us  with  worthy  purpose. — Postmaster-General 
Cortelj  ou. 


THE  TARIFF  BOARD. 


President  Taft's  earnest  and  persistent  advocacy  of  a  Tariff 
Board  is  one  of  the  most  notable  features  of  his  Administration. 
The  Republican  platform  commends  this  phase  of  Mr.  Taft's 
record  in  no  uncertain  terms.  The  Democratic  program  of  ob- 
struction to  the  work  of  the  Tariff  Board  and  the  refusal  of 
the  leaders  of  the  Democratic  House  of  Representatives  to  make 
use  of  the  data  collected  by  the  Board  is  merely  additional 
evidence  of  the  willingness  of  Democratic  politicians  to  play 
foot-ball  with  the  business  of  the  country.  President  Taft,  con- 
vinced that  the  protective  policy,  in  which  he  firmly  believes, 
can  stand  the  test  of  unbiased  and  non-partisan  investigation, 
early  in  his  Administration  put  himself  squarely  in  accord  with 
the  enlightened  policy  of  every  great  foreign  nation  in  urging 
legislation  for  the  creation  of  a  disinterested  body  of  men  to 
make  a  world-wide  inquiry  to  develop  essential  facts  for  the 
levying  of  an  American  tariff.  In  this  he  had  the  support  of 
the  principal  commercial  organizations  of  the  nation,  and  busi- 
ness men  North  and  South,  irrespective  of  political  belief,  up- 
held his  hands. 

The  following  extracts  from  an  address  made  by  President 
Taft  on  September  23,  1911,  indicate  the  attitude  of  the  Presi- 
dent toward  the  Tariff  Board : 

"I  put  at  the  head  of  this  board  Prof.  Henry  C.  Emery,  upon  the 
recommendation  of  the  presidents  of  a  number  of  universities  who  were 
consulted.  Mr.  Alvin  Sanders  was  the  editor  of  the  Breeders'  Gazette, 
a  man  of  the  highest  standing,  who  had  devoted  his  life  to  the  study  of 
the  agricultural  interests  of  this  country,  while  Mr.  Reynolds  has  been 
for  years  an  Assistant  Secretary  of  the  Treasury  under  Mr.  Roosevelt,  in 
charge  of  customs,  and  had  become  very  familiar  with  the  operation  of 
the  existing  tariff  and  its  construction.  To  these  three  I  added  Prof. 
Page  of  the  University  of  California,  and  then  of  the  University  of  Vir- 
ginia, a  well-known  economist,  with  the  same  general  standing  as  that 
of  Prof.  Emery ;  and  Mr.  W.  M.  Howard,  a  former  Democratic  Congress- 
man from  Georgia  and  admittedly  one  of  the  ablest  and  fairest  members 
of  the  half  dozen  Congresses  in  which  he  served.  The  make-up  of  the 
Board  insures  nonpartisan  action.  The  truth  is,  that  with  the  exception 
of  Mr.  Howard  and  Mr.  Reynolds,  the  Board  may  be  said  to  have  no 
political  affiliations  at  all. 

"The  Board  is  a  board  of  the  highest  intelligence  and  ability,  and  well 
qualified  by  their  previous  experience  to  act  as  investigators,  analyzers 
of  evidence,  and  judges  of  issues  of  fact.  They  are  under  instructions  to 
draw  their  conclusions  without  respect  to  their  effect,  and  I  venture  to 
say  that  there  is  no  board  in  the  country  less  likely  to  be  influenced  by 
political  or  other  improper  considerations  than  the  Tariff  Board  as  it  is 
now  constituted.  Even  the  attacks  made  upon  it,  prompted  by  the  heat 
of  political  controversy  and  impatience  at  my  vetoes,  can  not  turn  it  from 
a  judicial  attitude  toward   all  questions  that  it  is  now  considering. 

"I  do  not  contend  that  the  tariff  can  be  taken  out  of  politics,  in  the 
sense  that  it  will  never  be  made  the  subject  of  political  discussion.  Men 
differ  radically  as  to  the  economical  wisdom  of  a  protective  tariff,  or  a 
tariff  for  revenue  only,  and  that  must  always  be  the  subject  of  political 
discussion.  But  there  is  a  means  of  taking  the  ascertainment  of  facts 
away  from  a  tribunal  like  that  of  the  Ways  and  Means  Committee,  which 
is  necessarily  hurried  in  its  inquiries  and  necessarily  lacking  in  thorough- 
ness and  the  temper  necessary  to  reach  the  most  impartial  conclusions. 
It  is  possible  to  transfer  those  investigations  heretofore  made  by  the  Ways 
and  Means  and  Finance  Committees  to  a  tribunal  which  will  make  a  thor- 
ough and  impartial  inquiry.  I  do  not  mean  to  say  that  the  Tariff  Board 
which  I  have  appointed  is  constituted  by  the  best  method  possible.  I  do 
not  think  it  is.  I  think  it  would  be  better  to  have  it  appointed  by  the 
President,  with  the  confirmation  of  the  Senate,  and  to  make  it  independent 
of  the  President  and  of  Congress  as  far  as  that  may  be  possible  under 
our  system.  I  do  say  that  the  present  Board  is  as  independent  as 
any  board  can  be,  but  I  admit  that  its  method  of  appointment  is  such 
that  conditions  might  arise  having  a  tendency  to  rob  it  of  its  impartial 
character.  Therefore,  I  ventured,  with  all  the  energy  of  which  I  was 
capable,  the  establishment  of  a  permanent  Tariff  Commission,  and  I  shall 
urge  upon  the  Congress,  as  long  as  it  is  my  function  to  do  so,  the  estab- 
lishment by   law  of  such   a   commission. 

"But  meantime,  Congress  has  enabled  me  to  organize  the  present  com- 
mission. They  have  shown  by  the  work  already  done  how  thorough  their 
future  work  will  be,  and  they  have  demonstrated  by  what  they  have  done 
that    the    material    which    they    will    place    before    the    Congress    and    the 

208 


THE  TARIFF  BOARD.  209 

Executive  in  December  with  reference  to  Schedules  K  and  I — that  is,  on 
woolens  and  on  cottons — will  be  of  a  more  valuable  character  and  one 
from  which  more  valuable  conclusions  can  be  drawn  than  any  report  of 
the  kind  ever  submitted  to  any  legislative  body.  Schedule  K  is  the  most 
complicated  schedule  in  the  whole  range  of  schedules.  Schedule  I,  a 
textile  schedule,  is,  except  for  the  difficulty  connected  with  the  raw  mate- 
rial in  Schedule  K,  equally  troublesome  and  complicated  and  hard  to  under- 
stand. When  those  reports  shall  have  been  submitted,  showing  the  differ- 
ence in  the  cost  of  production  abroad  and  in  this  country  of  textile  fabrics, 
and  giving  a  basis  upcn  which  a  proper  reduction  can  be  m»:le  in  either 
schedule,  it  will  be  my  duty  and  my  pleasure  to  recommend  to  Congress 
such  a  reduction.  Meantime,  attacks  upon  the  Board  as  one  whose  judg- 
ment is  not  worthy  of  consideration  are  born  n'ot  of  a  candid  consideration 
of  their  previous  work,  not  of  a  frank  acknowledgment  of  the  ability  of 
the  various  members  of  the  Board  to  do  work  that  they  are  charged  to  do, 
but  they  come  from  the  thoughtless  heat  of  political  controversy,  and 
ought  to  have  no  weight  with  unbiased   friends  of  the   public  weal." 

The  Tariff  Board  was  created  in  September,  1909,  and,  under 
instructions  of  the  President,  was  first  engaged  in  assisting  the 
Executive  in  the  discharge  of  the  duties  imposed  on  the  Presi- 
dent by  the  Maximum  and  Minimum  Clause  of  the  Payne  Tariff 
Law.  Its  attention  was  then  directed  to  accumulating  informa- 
tion for  the  use  of  Congress  in  connection  with  the  Reciprocity 
Agreement  made  with  Canada,  and  especially  on  comparative 
costs  in  Canada  and  in  the  United  States,  the  wages  paid  labor 
and  particularly  farm  labor  in  the  two  countries,  and  the  cost 
of  producing  paper  and  wood  pulp  on  both  sides  of  the  "boundary. 

Following  this  the  Board  took  up  an  extensive  and  world-wide 
investigation  of  articles  covered  in  the  Woolen  Schedule  (Sched- 
ule K)  and  in  the  Cotton  Schedule  (Schedule  I).  These  reports 
were  duly  submitted  to  the  President  and  by  him  transmitted 
to  Congress.  The  Board  has  also  submitted  to  Congress  a  glos- 
sary on  chemicals,   oils  and  paints    (Schedule  A). 

The  work  of  the  Board  was  divided  into  three  main  groups : 

1st.  Its  plan  was  to  secure  as  to  each  article  in  the  tariff 
concise  information  regarding  the  nature  of  the  article,  the 
chief  sources  of  supply  at  home  and  abroad,  the  methods  of  its 
production,  its  chief  uses,  statistics  of  production,  imports  and 
exports,  with  an  estimate  of  the  ad  valorem  equivalent  for  all 
specific  duties.  This  was  called  a  glossary  of  the  tariff  and 
was  intended  to  carry  out  President  Taft's  statement  that  he 
wished  the  Board  to  "translate  the  tariff  into  English."  The 
Board  has  coinpleted  this  glossary  work  on  the  Chemicals,  Wool 
and  Cotton  Schedules  and  submitted  the  same  to  Congress. 

2d.  The  Board  made  an  inquiry  into  actual  costs  of  production 
at  home  and  abroad.  In  the  pulp  and  paper  investigation,  for 
instance,  this  inquiry  covered  80  per  cent  of  the  newsprint  paper* 
production  of  the  United  States  and  78.2  per  cent  of  the  news- 
print paper  production  of  Canada.  In  the  wool  investigation 
more  than  1,200  American  growers  were  personally  visited  by 
agents  of  the  Board.  The  raw  wool  investigation  extended  also 
to  Argentina,  Australia  and  other  important  foreign  wool  pro- 
ducing countries.  Besides,  the  agents  of  the  Board  made  an 
exhaustive  investigation  into  costs  of  manufacture  of  woolen 
and  cotton  goods  in  the  United  States  and  principal  competing 
countries.  This  inquiry  covered  also  labor  and  machine  effi- 
ciency here  and  abroad. 

3d.  The  Board  employed  men  of  experience  from  particular 
lines  of  industry,  both  on  the  technical  and  commercial  side,  to 
secure  accurate  information  regarding  actual  prices  at  home  and 
abroad,  the  peculiar  local  conditions  affecting  particular  indus- 
tries and  the  general  conditions  of  home  and  foreign  competftion 
to  which  such  industries  are  subject. 

In  the  spring  of  1911  President  Taft  gave  permission  to  a 
committee  of  the  National  Tariff  Commission  Association  to 
investigate  and  report  on  the  organization,  methods  and  work 
of  the  Tariff  Board.  The  report  of  this  committee,  which  was 
unanimous,  was  signed  by  Henry  R.  Towne,  President  of  the 
Merchants'  Association  of  New  York ;  John  Kirby,  Jr.,  President 
of  the  National  Association  of  Manufacturers;  Charles  M.  Jarvis, 
Vice-President  of  the  National  Association  of  Manufacturers ; 
H.  E.  Miles,  former  President  of  the  National  Association  of  Im- 
plement and  Vehicle  Manufacturers ;  J.  J.  Culbertson,  President 


210  THE  TARIFF  BOARD. 

of  the   Southern   Cotton  Seed  Crushers'  Association,  and    Pra 
T.  Simmons,  a  member  of  the  Executive  Council  of  the  Chicago 
Association    of    Commerce.      Following   is    an   extract   from   the 
report  of  this  committee: 

"Unlimited  opportunity  was  afforded  us  in  our  investigations  of  the 
work  and  methods  of  the  Board,  the  'organization  of  the  staff,  the  rates 
of  salaries  paid,  and  the  kind  and  amount  of  all  other  expanses  incurred. 
Every  inquiry  by  us  was  responded  to  unreservedly  and  satisfactorily.  We 
arc  justified,  therefore,  in  stating  that  our  conclusions  are  based  upon  a 
full  and  intelligent  understanding  of  the  facts. 

********* 

"Our  committee  was  favorably  impressed  with  the  character,  ability 
and  fitness  of  the  members  of  the  Tariff  Board  appointed  by  President 
Taft.  We  think  it  fortunate  that  the  country  has  been  able  to  secure, 
for  service  in  this  new  and  untried  field,  Ave  men  who,  on  the  whole, 
are  so  well  equipped  for  their  duties,  so  impartial  and  able  in  so  short  a 
time  to  organize  the  work  on  an  effective  basis.  In  this  connection  it  Is 
important  to  keep  in  mind  the  fact  that  the  functions  of  the  Tariff  Board 
are  administrative  and  judicial ;  that  its  members  were  not  selected 
as  technical  experts  in  any  one  field  of  industry  ;  that  the  Work  of  tech- 
nical investigation  will  be  done  by  many  experts  employed  for  this  purpose 
by  the  Board  ;  and  that  the  highest  function  of  the  Board  will  consist  in 
weighing  the  evidence  thus  gathered,  in  reaching  sound  conclusions  thereon, 
and  in  embodying  all  essential  facts  in  its  reports.  In  this  respect  the 
Board  acts  as  a  court  of  first  instance  to  review  the  evidence  gathered  by 
its  experts  and  to  pass  judgment  thereon.  It  thus  fulfills  the  functions  of 
a  commission  appointed  by  a  court  of  justice  to  make  findings  of  fact 
for  the  information  of  the  court.  Briefly  the  motto  of  the  Board  might  be 
'to  furnish  facts,  not  opinions.'  Congress  is  and  will  remain  the  court 
of  final  judgment,  which  will  receive  the  findings  of  the  Tariff  Board  and 
take  such  action  thereon,  if  any,  as  in  the  judgment  of  Congress  may 
appear  to  be  necessary  or   expedient. 

********* 

"In  conclusion  our  committee  finds  that  the  Tariff  Board  is  composed 
Of  able,  impartial,  and  earnest  men,  who  are  devoting  their  energies 
unreservedly  to  the  work  before  them ;  that  the  staff  has  been  carefully 
selected  for  the  work  in  view,  is  efficiently  organized  and  directed,  and 
includes  a  number  of  exceptionally  competent  technical  experts  ;  *  *  * 
that  the  work  of  the  Board,  vast  and  intricate  in  detail,  is  already  highly 
organized,  well  systematized,  and  running  smoothly ;  and  that  Congress 
and  the  people  can  now  await  the  completion  of  that  work  with  entire 
confidence  that  it  is  progressing  as  rapidly  as  consistent  with  proper  thor- 
oughness and  that  it  will  amply  justify  all  the  time  and  expense  it  entails. 
We  believe  that  the  value  of  the  work  when  completed  will  be  so  great 
and  so  evident  as  to  leave  no  single  doubt  as  to  the  expediency  'of  main- 
taining it  as  a  permanent  function  of  the  Government  for  the  benefit  of 
the  people." 

As  an  evidence  of  the  attitude  of  foreign  countries  toward 
the  work  of  the  Tariff  Board,  an  official  of  the  Eoyal  Imperial 
Ministry  of  Commerce  of  Austria,  regarded  as  a  leading  author- 
ity on  tariff  questions  in  Europe,  said,  regarding  the  pulp  and 
paper  report : 

"The  report  is  excellent  and  in  line  with  the  latest  theory,  and  I  know 
of  no  European  publication  which  so  correctly  interprets  the  mc,st  impor- 
tant features  of  the  question  of  commercial  policy  as  does  your  report  on 
the  paper  industry.  This  is  a  very  good  beginning,  and  I  already  see  that 
you  will  soon  leave  all  the  European  government  departments  far  behind 
in  the  publication  of  model  reports  on  questions  of  commercial  policy.  This 
report  will   attract  great  attention  in  Europe." 

The  same  authority,   discussing  the  wool  report,   said : 

"It  is  an  excellent  standard  work.  The  Tariff  Board  has  come  within 
a  very  short  time  to  the  head  of  all  the  similar  boards  established  a  long 
time  since  in  the  other  countries.  It  is  really  true  that  no  legislative 
body  has  ever  had  presented  t'o  it  a  better  report  on  a  tariff  question.  It 
will  be  also  entirely  impossible  not  to  take  your  results  in  mind  la  pro- 
ceeding to  a  revision  of  the  tariff.  It  would  be  a  great  mistake  to  slop 
the  work  of  the  Board,  and  it  would  soon  prove  necessary  to  reestabli 

The  functions  of  the  Tariff  Board  are  well  described  by  Pro- 
fessor Henry  C.  Emery,  Chairman  of  the  Tariff  Board,  wtio 
says: 

"The  role  of  such  a  board  will  be  to  act  not  as  legislator,  nor  as  advo- 
cate, nor  yet  as  judge.  It  will  be  closer  to  the  function  of  a  commi 
or  referee  appointed  by  the  court  to  make  a  report  on  the  findings  of  fact. 
On  these  findings  judgments  may  be  rendered  or  policies  determined  by 
the  properly  constituted  authorities.  It  ought  to  be  plain  that  wha 
policy  the  people  choose  to  follow,  or  whatever  party  they  support,  (lie 
impartial   finding  of   facts  is  equally  important   in   any   ease. 

********* 

"The  President  has  given  us  our  task  to  find  the  facts.  We  have 
resolved    not    to   substitute    for    facts    any   half-formed  or    opinions. 

We   shall    not   depart    from   this   resolve   under   orders   or    pressure    from    any 
man,   or  any    interest,    nor   in   response   to  mere   unthinking   clamor." 


PRESIDENT  TAFT'S  VETOES  OF  DEMO- 
CRATIC TARIFF  BILLS. 


The    "Farmers    Free    List"    Bill. 

To  the  House  of  Representatives: 

I  return,  without  my  approval.  House  bill  4413,  entitled — 

An  act  to  place  on  the  free  list  agricultural  implements,  cotton 
bagging,  cotton  ties,  leather,  boots  and  shoes,  fence  wire,  meats, 
cereals,  flour,  bread,  timber,  lumber,  sewing  machines,  salt  and 
other  articles. 

This  free  list  covers  articles  in  the  metal  schedule,  the  cotton 
schedule,  the  wool  schedule,  and  the  leather  schedule.  In  a 
special  message  returning,  without  my  approval,  the  wool  bill,  I 
have  set  forth  at  length  the  reasons  why  I  think  all  general 
amendments  to  the  existing  tariff  laws  should  be  postponed  until 
accurate  and  scientific  information  can  be  submitted  to  Congress 
by  a  Tariff  Board  appointed  for  the  purpose  of  investigating  the 
question  of  the  difference  in  cost  of  production  of  dutiable 
articles  at  home  and  abroad.  The  same  reasons  which  impelled 
me  to  decline  to  sign  the  wool  bill  control  me  in  this  case.  There 
are  other  reasons  apparent  on  the  face  of  the  bill,  taken  in  con- 
nection with  the  existing  law,  which  make  it  unwise  to  allow 
this  bill  to  pass. 

The  bill  is  so  carelessly  drawn  that  it  would  inevitably  lead 
to  the  greatest  uncertainty  as  to  what  articles  are  or  are  not 
covered  by  its  various  provisions.  This  would  impose  a  heavy 
burden  on  the  administrative  branch  of  the  Government,  create 
disastrous  uncertainty  in  commercial  circles,  and  lead  to  a 
burdensome  amount  of  litigation.  The  bill,  while  apparently  very 
simple  and  affecting  only  a  few  articles,  is  in  reality  so  loose 
in  its  phraseology  that  it  would  affect  hundreds  of  items  in  the 
existing  tariff  act.  Conceding  the  wisdom  of  its  general  policy, 
the  paragraphs)  of  the  bill  ought  to  be  rewritten  in  definite  and 
specific   terms. 

Take  the  expression  in  the  first  clause,  following  the  specific 
mention  of  agricultural  implements,  "all  other  agricultural 
implements  of  any  kind  and  description,  whether  specifically 
mentioned  herein  or  not,  whether  in  whole  or  in  parts,  including 
repair  parts."  This  language  is  so  sweeping  that  it  might  be 
made  to  cover  almost  150  articles  used  in  agriculture,  which 
would  affect  many  sections  of  the  present  tariff  and  lead  to  the 
most  injurious  uncertainty.  Furthermore,  it  would  make  it 
possible  to  import  free  many  materials  now  paying  a  duty,  when 
roughly  fashioned  into  the  form  of  parts  of  farm  implements 
but  actually  intended  for  entirely  different  uses. 

Again,  take  the  general  expression  in  the  second  clause,  the 
bagging  clause,  "other  material  suitable  for  bagging  or  sacking 
agricultural  products."  It  is  a  serious  question  whether  this 
section  might  not  be  interpreted  to  make  radical  changes  in  many 
sections  of  Schedules  I  (cotton),  J  (jute  and  hemp),  and  K 
(wool),  and  it  would  undoubtedly  be  open  to  the  same  objection 
of  allowing  free  entry  to  a  large  amount  of  textile  manufactures, 
technically,  suitable  for  sacking  agricultural  products,  but  intended 
for  entirely  different  purposes. 

Another  clause  that  calls  for  comment  is  in  the  leather  para- 
graph, which  reads  as  follows :  "Leather  cut  into  shoe  uppers 
or  vamps  or  other  forms  suitable  for  conversion  into  manufac- 
tured articles."  The  history  of  this  clause  is  informing  as  to 
the  method  of  drafting  the  bill.  The  phraseology  is  found  in  a 
proviso  at  the  end  of  paragraph  451  of  the  existing  tariff.  The 
whole  paragraph  imposes  various  duties  on  different  kinds  of 
leather,  including  many  more  varieties  than  are  made  free  by 
this  bill,  and  the  language  of  the  proviso  is  used  in  the  existing 
law  to  impose  an  additional  ad  valorem  duty  on  all  such  leather 
when  cut  into  forms  for  further  manufacture.  The  draftsman 
,of   the   bill   now   before  me  took   this   language,    struck   out   the 

211 


212  VETOES  OP  DEMOCRATIC  TARIFF  BILLS. 

10  per  cent,  ad  valorem,  and  left  the  preceding  descriptions  of 
leather  out  of  which  the  forms  were  to  be  cut,  dutiable  as  under 
the  present  law.  The  result  is  that  calfskins  tanned,  kangaroo, 
sheep  and  goat  skins,  dressed  and  finished,  bookbinders'  calf- 
skins, chamois  skins,  patent  and  enameled  leather,  pianoforte 
leather,  and  other  varieties  of  leather,  when  uncut,  would  pay, 
under  the  proposed  bill,  if  it  became  a  law,  duties  ranging  from 
the  equivalent  of  40  per  cent,  ad  valorem  down  ;  while  the  cut 
forms  of  such  leather  would  come  in  free.  This  imposes  a 
penalty  on  the  domestic  labor  of  cutting  and  would  transfer  half 
the  process  in  the  industry  of  shoemaking  and  glove  making  to 
foreign  countries.  The  result  is  so  unreasonable  as  to  suggest 
great  haste  in  preparation. 

Another  clause  equally  full  of  difficulty  is  that  admitting  free, 
"Barbed  fence  wire,  wire  rods,  wire  strands,  or  wire  rope,  wire 
woven  or  manufactured  for  wire  fencing,  and  other  kinds  of 
wire  suitable  for  fencing,  including  wire  staples."  This  section 
seems  to  be  drawn  with  the  idea  of  giving  free  wire  for  fencing 
purposes,  but  is  so  loosely  worded  that  it  might  be  taken  to 
include  also  the  highest  grades  of  wire  rods  and  wire  rope.  This 
is  especially  true,  because  wire  rope  is  never  used  for  fencing, 
and  the  words  '"wire  rods,  wire  strands,  or  wire  rope"  are  sepa- 
rated by  commas  from  the  rest  of  the  section,  and  it  is  difficult, 
with  the  collocation  of  terms  here  used,  and  in  face  of  the  fact 
that  wire  rope  is  not  used  for  fencing  at  all,  to  limit  "wire  rods, 
strands  and  rope"  here  made  free  to  something  suitable  for 
fencing. 

Ihe  truth  is  that  the  language  of  the  act  is  so  ambiguous  and 
possibly  all-embracing  that  it  is  impracticable  for  the  Treasury 
Department  to  give  an  exact  estimate  as  to  the  diminution  in 
revenue  which  will  follow  its  passage.  The  estimates  vary  all 
the  way  from  $10,000,000  to  $14,000,000,  according  to  the 
varieties  of  construction  put  upon  the  act  and  this,  although 
when  the  bill  was  first  under  consideration  it  was  publicly  stated 
by  its  advocates  that  the  reduction  in  revenue  would  not  exceed 
$1,500,000. 

The  difficulty  with  the  bill  is  that  in  the  sections  above  referred 
to  it  purports  to  secure  a  free  list  for  the  benefit  of  a  certain 
class  of  users;  but  to  classify  articles  by  their  use  or  their 
suitability  for  a  certain  use  is  so  contrary  to  the  methods  of 
classification  in  the  existing  tariff  law  that  its  adoption  would 
create  the  utmost  confusion.  The  danger  is  not  so  much  that 
the  class  of  users  in  whose  favor  the  classification  purports  to 
be  made  will  receive  more  benefit  than  the  framers  of  the  law 
may  have  intended,  but  it  is  that  many  who  do  not  belong  to 
the  class  intended  to  be  favored  will  import  articles  suitable  for 
the  prescribed  use  under  the  general  terms  of  the  statute,  but 
will  use  them  for  other  and  general  purposes.  The  effect  will 
be  to  break  down  altogether  the  classification  upon  which  the 
arrangement  in  many  of  the  present  tariff  schedules  is  based. 
If  there  were  no  other  reason  for  withholding  my  approval  from 
this   bill,   this  one  would  be  all-sufficient. 

But  there  is  another,  and  a  very  important,  reason  why  the 
bill  ought  not  become  a  law.  and  that  is  that  in  many  instances 
it  adopts  the  principle,  rarely  permitted  in  any  revenue  system. 
on  whatever  theory  constructed,  by  which  the  finished  product 
is  made  free  from  duty  and  the  raw  material  and  the  machinery 
necessary  for  its  production  are  kept  on  the  dutiable  list.  Even 
the  most  extreme  free  trader,  or  advocate  of  tariff  for  revenue 
only,  has  never  before  sought  an  adjustment  of  the  duties  which 
subjects  the  manufacturer  to  a  burden  in  his  manufacture  by 
Imposing  a  duty  on  the  machinery  and  the  raw  material  he  uses 
and  involves  him  in  unrestricted  foreign  competition  as  to  the 
finished  product.  This  is  true  with  reference  to  leather  and 
s1hh\s.  with  reference  to  material  for  bagging,  with  reference 
to  cotton  ties,  and  wire  for  baling  and  for  fencing,  and  indeed 
for  the  agricultural  implements  included  in  the  catch-all  clause 
to  which   I   have  referred. 

A  third  objection  to  the  bill  is  that,  without  in  fact  reducing 
the  price  to  the  consumer  of  the  articles  admitted  free  in  a 
number  of  the  paragraphs,  it  gives  an  advantage  to  Canada,  our 
neighbor  on  the  north,  which  by  withholding  we  might  well   use 


VETOES  OF  DEMOCRATIC  TARIFF  BILLS.  213 

in  the  future  to  secure  further  concessions  for  us  in  the  reci- 
procity agreement  which  the  present  Congress  has  requested  me 
to  expand. 

Let  me  give  the  instances :  Agricultural  implements  specifically 
mentioned  in  the  hill  are  shown  by  a  report  of  the  Bureau  of 
Trade  Relations  of  the  State  Department  to  be  cheaper  in  this 
country  than  anywhere  in  the  world.  This  is  confirmed  by  the 
fact  that  under  existing  law  all  countries  admitting  our  agri- 
cultural implements  free  can  have  free  access  to  our  markets 
for  the  same  articles.  Great  Britain  is  the  only  country  whose 
present  laws  entitle  her  to  this  privilege,  and  which  exports 
such  articles  in  great  quantity,  and  yet  she  exports  practically 
none  to  this  country.  We  urged  Canada  to  consent  to  free  trade 
in  these  articles  in  the  reciprocity  agreement,  but  she  declined. 
Now  it  is  proposed  to  give  her  free  trade  in  them  while  she 
retains  a  duty  of  15  per  cent,  ad  valorem  on  our  agricultural 
implements.  To  admit  her  manufactures  will  not  lower  our 
prices,  but  it  is  giving  her  access  to  our  markets  for  nothing, 
while  we  might  use  this  privilege  to  secure  some  concession 
from  her. 

The  same  thing  is  true  of  that  part  of  the  present  bill  in  which 
meat  and  flour  are  put  on  the  free  list  for  countries  with  whom 
we  have  a  reciprocal  agreement,  and  which  receive  free  our 
agricultural  products.  This  limits  the  admission  of  free  meat 
and  flour  to  Canada  only.  Meat  in  Canada  and  flour  in  Canada 
are  as  high  as  they  are  in  the  United  States,  and  in  many 
instances  higher.  We  asked  to  have  free  trade  in  these  two 
articles  under  the  reciprocity  agreement,  but  Canada  declined, 
for  the  reason  that  she  feared  the  effect  of  the  competition  of 
our  meat  packers  and  our  flour  mills  with  her  packers  and  millers. 

Now  it  is  proposed  to  open  this  market  to  the  Canadian 
packers  and  millers  without  our  having  access  to  the  Canadian 
market.  Such  action  will  not  reduce  the  price  of  meat  or  flour 
in  this  country.  That  is  shown  by  the  fact  that  they  were  afraid 
of  our  competition.  In  normal  times  their  importations  will 
have  no  effect  on  our  markets,  and  hence  the  admission  from 
Canada  of  meat  and  flour  will  be  of  practically  no  benefit  to  the 
consumer,  but  will  offer  an  inducement  to  capitalists  thinking  of 
building  mills  or  packing  houses  to  put  them  on  the  Canadian 
side  of  the  border,  where  they  can  have  the  advantage  of  both 
markets  free.  This  is  another  instance  in  which  the  bill  takes 
away  from  the  President,  in  dealing  with  the  matter  of  reci- 
procity, something  that  he  might  use  in  a  trade  to  induce  further 
reciprocity. 

Another  instance  is  in  reference  to  the  more  finished  kinds  of 
lumber.  Under  our  reciprocity  agreement,  rough  lumber  enters 
both  countries  free.  Canada  imposes  25  per  cent,  duty  on  the 
more  finished  article,  and  we  impose  a  duty  of  a  different  amount. 
If,  now,  we  take  off  all  duty  on  the  finished  product,  we  are 
giving  her  our  market  in  this  lumber  for  nothing,  while  we  do 
not  secure  the  benefit  of  hers;  and  we  give  to  her  Provinces  a 
very  strong  motive  for  imposing  restrictions  and  limitations  on 
the  cutting  and  export  of  rough  lumber  to  this  country  in  order 
to  induce  the  transfer  of  the  whole  lumber  manufacturing  in- 
dustry to  Canada. 

I  withhold  my  approval  from  this  bill,  therefore,  for  the 
reasons,  first,  because  it  should  not  be  considered  until  the  Tariff 
Board  shall  make  report  upon  the  schedules  it  affects ;  second, 
because  the  bill  is  so  loosely  drawn  as  to  involve  the  Government 
in  endless  litigation  and  to  leave  the  commercial  community  in 
disastrous  doubt ;  third,  because  it  places  the  finished  product 
on  the  free  list,  but  retains  on  the  dutiable  list  the  raw  material 
and  the  machinery  with  which  such  finished  product  is  made, 
and  thus  puts  at  a  needless  disadvantage  our  American  manu- 
facturers;  and  fourth,  that  while  purporting,  by  putting  agri- 
cultural implements,  meat  and  flour  on  the  free  list,  to  reduee 
their  price  to  the  consumers,  it  does  not  do  so,  but  only  gives  to 
Canada  valuable  concessions  which  might  be  used  by  the  Execu- 
tive to  expand  reciprocity  with  that  country  in  accordance  with 
the  direction  of  Congress. 

Wm.  H.   Taft. 

The   White  House,  August  18,   1911. 


;>14  VETOKS  OF  DE.MOri:\'J|('  T.\I!!FF    HILLS. 

The  Wool   Schedule,   1011. 

To  the  House  of  Representatives: 

I  return  without  my  approval  House  bill  No.  11019  with  a 
staP'uMMi!    of  my   reasons   tor  so   doing. 

The  bill  is  an  amendment  of  the  existing  tariff  law.  and  re- 
adjust the  customs  duties  in  what  is  known  as  Schedule  K. 
embracing  wool   and  the  manufactures  of  wool. 

I  was  elected  to  the  Presidency  as  the  candidate  of  a  party 
which  in  ith  platform  declared  its  aim  and  purpose  to  be  to 
maintain  a  protective  taritf  by  "the  imposition  of  sueh  duties  as 
will  equal  the  difference  between  the  cost  of  production  at  home 
and  abroad,  together  with  a  reasonable  profit  to  American  indus- 
tries." I  have  always  regarded  this  language  as  fixing  the  proper 
measure  of  protection  at  the  ascertained  difference  between  the 
cost  of  production  at  home  and  that  abroad,  and  have  construed 
the  reference  to  the  profit  of  American  industries  as  intended, 
not  to  add  a  new  element  to  the  measure  stated  or  to  exclude 
from  the  cost  of  production  abroad  the  element  of  a  manufac- 
turer's or  producer's  profit,  but  only  to  emphasize  the  importance 
of  including  in  the  American  cost  a  manufacturer's  or  producer's 
profit  reasonable  according  to  the  American  standard. 

in  accordance  with  a  promise  made  in  the  same  platform  I 
called  an  extra  session  of  the  Sixty-first  Congress,  at  which  a 
general  revision  of  the  tariff  was  made  and  adopted  in  the  Payne 
bill.  It  was  contended  by  those  who  opposed  the  Payne  bill  that 
the  existing  rates  of  the  Dingley  bill  were  excessive  and  that 
the  rates  adopted  in  the  revising  statute  were  not  sufficiently 
reduced  to  conform  to  the  promised  measure. 

The  great  difficulty,  however,  in  discussing  the  new  rates 
adopted  was  that  there  were  no  means  available  by  which  im- 
partial persons  could  determine  what,  in  fact,  was  the  difference 
in  cost  of  production  between  the  products  of  this  country  and 
the  same  products  abroad.  The  American  public  became  deeply 
impressed  with  the  conviction  that,  in  order  to  secure  a  proper 
revision  of  the  tariff  in  the  future,  exact  information  as  to  the 
effect  of  the  new  rates  must  be  had,  and  that  the  evil  of  log- 
rolling or  a  compromise  between  advocates  of  different  protected 
industries  in  fixing  duties  could  be  avoided,  and  the  interest  of 
the  consuming  public  could  be  properly  guarded,  only  by  revising 
the  tariff  one  schedule  at  a  time. 

To  help  these  reforms  for  the  future,  I  took  advantage  of  a 
clause  in  the  Payne  tariff  bill  enabling  me  to  create  a  Tariff 
Board  of  three  members  and  directed  them  to  make  a  gloss; i  ry 
and  encyclopedia  of  the  terms  used  in  the  tariff  and  to  secure 
information  as  to  the  comparative  cost  of  production  of  dutiable 
articles  under  the  tariff  at  home  and  abroad.  In  my  message 
to  Congress  of  December  7,  1909,  I  asked  a  continuing  annual 
appropriation  for  the  support  of  the  board  and  said: 

I  believe  that  the  work  of  this  board  will  be  of  prime  utility 
and  importance  whenever  Congress  shall  deem  it  wise  again  to 
readjust  the  customs  duties.  If  the  facts  secured  by  the  Taritf 
Board  are  of  such  a  character  as  to  sbow  generally  that  the  rates 
of  duties  imposed  by  the  present  tariff  law  arc  excessive  under  the 
principles  of  protection  as  described  in  the  platform  of  the 
cessful  party  at  the  late  election,  I  shall  riot  hesitate  to  invite  I  lie 
attention  of  Congress  to  this  fact  and  to  the  necessity  lor  net  inn 
predicated  thereon.  Nothing,  however,  halts  business  and  inter- 
feres with  the  course  of  prosperity  so  much  as  the  threatened  re- 
vision of  the  tariff,  and  until  the  facts  are  at  hand,  after  careful 
and  deliberate  investigation,  upon  which  such  reyisiop  can  prop- 
erly be  undertaken,  it  seems  to  me  unwise  to  attempt  It.  The 
amount  of  misinformation  that  creeps  into  arguments,  pro  and 
con,  in  respect  to  tariff  rates  is  such  a--  to  require  the  kind  of  in- 
vestigation that  I  have  directed  the  Tariff  Board  tp  make,  an  in- 
vestigation undertaken  by  it  wholly  without  respect  to  the  effect 
whieh  the  facts  may  have  in  calling  for  a  readjustment,  of  the 
rates   of   duty. 

A  popular  demand  arose  for  the  formal  creation  by  law  of  a 
permanent  non-partisan  tariff  commission.  Commercial  bodies 
all  over  the  country  united  in  a  movement  to  secure  adequate 
legislation  for  this  purpose  and  an  association  with  a  nation- 
wide constituency  was  organized  to  promote  the  cause.  The 
public  opinion  in  favor  of  such  a  commission  was  evidenced  by 


VETOES  OF  DEMOCRATIC  TARIFF  BILLS.  215 

resolutions  adopted  in  1909  and  1910  by  Republican  State  con- 
ventions in  at  least  2S  States. 

In  addition,  efforts  were  made  to  secure  a  change  in  the  rules 
of  procedure  in  the  House  and  Senate  with  a  view  to  preventing 
the  consideration  of  tariff  changes  except  schedule  by  schedule. 

The  business  of  the  country  rosts  on  a  protective-tariff  basis. 
The  public  keenly  realized  that  a  disturbance  of  business  by  a 
change  in  the  tariff  and  a  threat  of  injury  to  the  industries  of 
llir  country  ought  to  be  avoided,  and  that  nothing  could  help  so 
much  to  minimize  the  fear  of  destructive  changes  as  the  known 
existence  of  a  reliable  source  of  information  for  legislative  action. 
The  dee})  interest  in  the  matter  of  an  impartial  ascertainment  of 
facts  hefore  any  new  revision,  was  evidenced  by  an  effort  to  pass 
a  tariff-commission  bill  in  the  short  session  of  the  Sixty-first  Con- 
gress, i;i  which  many  of  both  parties  united.  Such  a  bill  passed 
both  Houses.  It  provided  a  commission  of  five  members,  to  be 
appointed  by  the  President,  not  more  than  three  of  whom  were 
to  belong  to  the  same  party,  and  gave  them  the  power  and  made 
it  their  duty  to  investigate  the  operation  of  the  tariff,  the  com- 
parative cost  of  production  at  home  and  abroad,  and  like  matters 
of  importance  in  fixing  the  terms  of  a  revenue  measure,  and 
required  them  to  report  to  the  Executive  and  to  Congress  when 
directed.  Several,  not  vital,  amendments  were  made  in  the 
Senate,  which  necessitated  a  return  of  the  bill  to  the  House, 
where,  because  of  the  limited  duration  of  the  session,  a  com- 
paratively small  minority  were  able  to  prevent  its  becoming  a 
law. 

On  the  failure  of  this  bill,  I  took  such  steps  as  I  could  to 
make  the  Tariff  Board  I  had  already  appointed  a  satisfactory 
substitute  for  the  proposed  tariff  commission.  An  appropriation 
of  $225,000,  to  continue  the  work  until  June  30,  1912,  had  been 
granted  by  Congress  in  the  alternative,  to  be  applied  to  the  board 
I  had  appointed,  unless  a  tariff-commission  bill  was  passed.  In 
this  appropriation  bill  the  non-partisan  tariff  commission,  if 
created  and  appointed,  was  directed  to  make  a  report  on  Schedule 
K  by  December  1,  1911.  Accordingly  I  added  two  members  to 
the  Tariff  Board  from  the  opposition  party,  and  directed  the 
board  to  make  report  on  Schedule  K  by  December  1st  next.  -The 
board  differs  in  no  way  from  the  tariff  commission  as  it  would 
have  been,  except  in  its  power  to  summon  witnesses ;  and  I  am 
advised  by  the  members  of  the  board  that,  without  this  power, 
they  have  had  no  difficulty  in  securing  the  information  they 
desire. 

The  board  took  some  months  to  investigate  the  methods  pur- 
sued in  other  countries  in  procuring  information  on  tariff  subjects 
and  to  organize  its  force.  In  October,  1910,  its  work  of  investi- 
gation began  with  a  force  of  40  that  has  now  increased  to  80. 
In  addition  to  the  "glossary,"  which  is  near  completion,  and  other 
work  connected  with  furnishing  information  in  connection  with 
the  enforcement  of  the  maximum  and  minimum  clause  of  the 
Payne  Tariff  Act,  and  in  respect  to  the  Canadian  reciprocity 
measure,  its  attention  has  been  especially  directed  to  compara- 
tive cost  under  Schedule  K  (wool  and  woolens),  under  Schedule 
M  (paper  and  pulp),  and  under  Schedule  I  (cotton  manufac- 
tures). The  report  on  Schedule  M  (pulp  and  paper)  has  already 
been  sent  to  Congress.  Full  reports  on  wool  and  cotton  will  be 
submitted  to  Congress  in  December.  I  have  also  directed  an 
investigation  into  the  metal  and  leather  schedules,  the  results 
of  which  it  is  hoped  can  be  submitted  to  Congress  at  its  first 
regular  session  in  time  to  permit  their  consideration  and  legis- 
lative action,  if  necessary. 

The  organization  known  as  the  Tariff  Commission  Associa- 
tion, made  up  of  representatives  of  substantially  all  the  com- 
mercial, bodies  of  the  country,  for  the  purpose  of  securing  the 
establishment  of  a  permanent  tariff  commission,  applied  to  me 
for  an  opportunity  to  investigate  the  methods  pursued  by  the 
Tariff  Board.  This  I  was  glad  to  grant,  and  a  very  full  report 
of  the  competent  committee  of  that  association  concluded  as 
follows : 

In  conclusion,  our  committee  finds  that  the  Tariff  Board  is  corn- 
Mi',   impartial   and   earnest  men,   who   are  devoting  their 
Hy.to  the  work  before  them;   that  the  staff  has 


210  VETOES  OF  DEMOCRATIC  TARIFF  BILES. 

been  carefully  selected  for  the  work  in  view,  is  efficiently  organ- 
ized and  directed,  and  includes  a  number  of  exceptionally  compe- 
tent technical  experts;  .  .  .  that  the  work  of  the  board,  vast 
and  intricate  in  detail,  is  already  highly  organized,  well 
systematized  and  running  smoothly;  and  that  Congress  and  the 
people  can  now  await  the  completion  of  that  work  with  entire 
confidence  that  it  is  progressing  as  rapidly  as  consistent  with 
proper  thoroughness,  and  that  it  will  amply  justify  all  of  the 
time  and  expense  which  it  entails.  We  believe  that  the  value  of 
the  work  when  completed  will  be  so  great  and  so  evident  as  to 
leave  remaining  no  single  doubt  as  to  the  expediency  of  main- 
taining it  as  a  permanent  function  of  the  Government  for  the 
benefit  of  the  people. 

I  have  thus  reviewed  the  history  of  the  movement  for  the 
establishment  of  a  tariff  commission  or  board  in  order  to  show 
that  the  real  advance  and  reform  in  tariff  making  are  to  he 
found  in  the  acquiring  of  accurate  and  impartial  Information 
as  to  the  effect  of  the  proposed  tariff  changes  under  each  sched- 
ule before  they  are  adopted,  and  further  to  show  that  if  delay 
in  the  passage  of  a  bill  to  amend  Schedule  K  can  be  had  until 
December,  Congress  will  then  be  in  possession  of  a  full  and  satis- 
factory report  upon  the  whole  schedule. 

This  brings  me  to  the  consideration  of  the  terms  of  the  bill 
presented  for  my  approval.  Schedule  K  is  the  most  complicated 
schedule  in  the  tariff.  It  classifies  raw  wool  with  different  rates 
for  different  classes;  it  affords  the  manufacturer  what  is  called 
a  compensatory  duty  to  make  up  for  the  increased  price  of  the 
raw  material  he  has  to  use  due  to  the  rate  on  raw  wool,  and  for 
the  shrinkage  that  takes  place  in  scouring  the  wool  for  manu- 
facture ;  and  it  gives  him,  in  addition,  an  ad  valorem  duty  to 
protect  him  against  foreign  competition  with  cheap  labor.  The 
usages  which  prevail  in  scouring  the  wool,  in  making  the  yarn, 
and  in  the  manufacture  of  cloth  present  a  complication  of  tech- 
nical detail  that  prevents  any  one,  not  especially  informed  con- 
cerning wool  growing  and  manufacture,  from  understanding  the 
schedule  and  the  effiect  of  changes  in  the  various  rates  and 
percentages. 

If  there  ever  was  a  schedule  that  needed  consideration  and 
investigation  and  elaborate  explanation  by  experts  before  its 
amendment,  it  is  Schedule  K.  There  is  a  widespread  belief  that 
many  rates  in  the  present  schedule  are  too  high  and  are  in  excess 
of  any  needed  protection  for  the  wool  grower  or  manufacturer. 
I  share  this  belief  and  have  so  stated  in  several  public  addresses. 
But  I  have  no  sufficient  data  upon  which  I  can  judge  how 
Schedule  K  ought  to  be  amended  or  how  its  rates  ought  to  be 
reduced,  in  order  that  the  new  bill  shall  furnish  the  proper 
measure  of  protection  and  no  more.  Nor  have  I  sources  of 
information  which  satisfy  me  that  the  bill  presented  to  me  for 
signature  will  accomplish  this  result.  The  parliamentary  history 
of  the  bill  is  not  reassuring  upon  this  point.  It  was  introduced 
and  passed  in  the  House  as  providing  a  tariff  for  revenue  only 
and  with  the  avowed  purpose  of  departing  from  a  protective- 
tariff  policy.  The  rate  of  duty  on  raw  wools  of  all  classes  was 
changed  from  a  specific  duty  of  11  cents  a  pound  to  20  per  cent, 
ad  valorem.  On  the  average  for  the  importations  for  the  last 
two  years  this  is  a  reduction  from  47.24  per  cent,  to  20  per  cent. 
Kates  on  cloths  were  reduced  in  the  bill  from  the  present  average 
duty  of  97.27  per  cent,  to  40  per  cent,  and  on  wearing  apparel 
from  81,31  per  cent,  to  45  per  cent.  The  bill  was  defeated  in  the 
Senate,  and  so  was  a  substitute  introduced  as  a  protection 
measure.  The  proposed  substitute  fixed  the  duty  on  raw  wool, 
first  class,  at  40  per  cent.,  and  on  a  second  class  of  carpet  wools 
at  10  per  cent,  and  on  cloths  at  60  per  cent.,  and  on  wearing 
apparel  at  the  same  rate.  On  reconsideration,  a  compromise 
measure  was  passed  by  the  Senate,  which  was  a  compromise 
between  the  House  bill  and  the  Senate  substitute  bill,  and  in 
which  the  rate  on  first-class  wool  was  fixed  at  35  per  cent.,  on 
carpet  wools  10  per  cent.,  and  on  cloth  and  wearing  apparel  .">."• 
per  cent.  In  conference  between  the  two  Houses  the  rate  on  all 
classes  of  raw  wool  was  fixed  at  29  per  cent.,  this  being  an 
Increase  Oil  carpet  wools  of  9  per  cent,  as  fixed  in  the  House  bill 
and  of  19  per  cent,  as  fixed  in  the  Senate  bill.  The  conference 
rate  on  cloths  and  wearing  apparel  was  fixed  at  49  per  cent.  No 
evidence  as  to  the  cost  of  production  here  or  abroad  was  pub- 


VETOES  OF  DEMOCRATIC  TARIFF  BILLS.  217 

lislied,  and  the  compromise  amendment  in  the  Senate  was  adopted 
without  reference  to  or  consideration   by  a  committee. 

I  do  not  mention  these  facts  to  criticise  the  method  of  prepa- 
ration of  the  bill;  but  I  must  needs  refer  to  them  to  show  that 
the  congressional  proceedings  make  available  for  me  no  accurate 
or  scientifically  acquired  information  which  enables  me  to  deter- 
mine that  the  bill  supplies  the  measure  of  protection  promised 
in  the  platform  on  which  I  was  elected. 

Without  any  investigation  of  which  the  details  are  available, 
an  avowed  tariff-for-revenue  and  anti-protection  bill  is  by  com- 
promise blended  with  a  professed  protection  bill.  Rates  between 
those  of  the  two  bills  are  adopted  and  passed,  except  that,  in 
some  important  instances,  rates  are  fixed  in  the  compromise  at 
a  figure  higher,  and  in  others  at  a  figure  lower,  than  were 
originally  fixed  in  either  House.  The  principle  followed  in 
adjusting  the  amendments  of  existing  law  is,  therefore,  not  clear, 
and  the  effect  of  the  bill  is  most  uncertain. 

The  Wilson  Tariff  Act  of  1894,  while  giving  the  manufacturer 
free  wool,  provided  as  high  duties  on  leading  manufactures  of 
wool  as  does  the  present  bill,  which  at  the  same  time  taxes  the 
manufacturer's  raw  material  at  29  per  cent.  Thus  the  protec- 
tion afforded  to  manufacturers  under  the  Wilson  bill  was  very 
considerably  higher  than  under  the  present  bill. 

During  the  years  in  which  the  Wilson  bill  was  in  force  the 
woolen  manufacturers  suffered.  Many  mills  were  compelled  to 
shut  down.  These  were  abnormal  years,  and  it  is  not  necessary 
to  attribute  the  hard  times  solely  to  the  tariff  act  of  1894.  But 
it  was  at  least  an  addition  to  other  factors  operating  to  injure 
the  woolen  business.  It  is  the  only  experience  we  have  had  for 
a  generation  of  a  radical  revision  of  this  schedule,  and,  without 
exaggerating  its  importance,  one  pledged  to  a  moderate  protec- 
tion policy  may  well  hesitate  before  giving  approval  without 
full  information  to  legislation  which  makes  a  more  radical  reduc- 
tion in  the  protection  actually  afforded  to  manufacturers  of  wool 
than  did  the  Wilson  Act.  Nor  does  this  hesitation  arise  only 
for  fear  of  injury  to  manufacturers.  Unless  manufacturers  are 
able  to  continue  their  business  and  buy  wool  from  domestic 
woolgrowers  the  latter  will  have  no  benefit  from  the  tariff  that 
is  supposed  to  protect  them,  because  they  will  have  to  sell  in 
competition  with  foreign  wools  or  send  their  sheep  to  the 
shambles.  Hence  the  woolgrower  is  as  much  interested  in  the 
protection  of  the  manufacturer  as  he  is  in  his  own. 

It  may  well  be  that  conditions  of  manufacture  in  this  country 
have  changed  so  as  to  require  much  less  protection  now  for  the 
manufacturers  than  at  the  time  of  the  Wilson  bill ;  but  in  view 
of  the  possible  wide  suffering  involved  by  hasty  action  based 
on  insufficient  knowledge,  the  wise  course,  in  my  judgment,  is 
to  postpone  any  change  for  a  few  months  needed  to  complete 
the  pending  inquiry. 

When  I  have  the  accurate  information  which  justifies  such 
action,  I  shall  recommend  to  Congress  as  great  a  reduction  in 
Schedule  K  as  the  measure  of  protection,  already  stated,  will 
permit.  The  failure  of  the  present  bill  should  not  be  regarded, 
therefore,  as  taking  away  the  only  chance  for  reduction  by  this 
Congress. 

More  than  a  million  of  our  countrymen  are  engaged  in  the 
production  of  wool  and  the  manufacture  of  woolens;  more  than 
a  billion  of  the  country's  capital  is  invested  in  the  industry. 
Large  communities  are  almost  wholly  dependent  upon  the  pros- 
perity of  the  woolgrower  and  the  woolen  manufacturer.  Mod- 
erately estimated,  5,000,000  of  the  American  people  will  be 
injuriously  affected  by  any  ill-advised  impairment  of  the  wool 
and  woolen  industries.  Certainly  we  should  proceed  prudently 
in  dealing  with  them  upon  the  basis  of  ascertained  facts  rather 
than  hastily  and  without  knowledge  to  make  a  reduction  of  the 
tariff  to  satisfy  a  popular  desire,  which  I  fully  recognize,  for 
reduction  of  duties  believed  to  be  excessive.  I  have  no  doubt 
that  if  I  were  to  sign  this  bill,  I  would  receive  the  approval  of 
very  many  persons  who  favor  a  reduction  of  duties  in  order  to 
reduce  the  cost  of  living  whatever  the  effect  on  our  protected 
industries,  and  who  fail  to  realize  the  disaster  to  business  gen- 
erally and  to  the  people  at  large  which  may  come  from  a  radical 


218  VETOES  OF  DEMOCRATIC  TARIFF  BILLS. 

disturbance  of  that  part  of  business  dependent  for  its  life  on 
the  continuance  of  a  .protective  tariff.  If  I  fail  to  guard  as  far 
as  I  can  the  industries  of  the  country  to  the  extent  of  giving 
them  the  benefit  of  a  living  measure  of  protection,  and  business 
disaster  ensues,  I  shall  not  be  discharging  my  duty.  If  I  fail 
1o  recommend  the  reduction  of  excessive  duties  to  this  extent,  I 
shall   fail  in  my  duty  to  the  consuming  public. 

There  is  no  public  exigency  requiring  the  revision  of  Schedule 
K  in  August  without  adequate  information,  rather  than  in  De- 
cember next  with  such  information.  December  was  the  time 
fixed  by  both  parties  in  the  last  Congress  for  the  submission  of 
adequate  information  upon  Schedule  K  with  a  view  to  its  amend- 
ment. Certainly  the  public  weal  is  better  preserved  by  delaying 
90  days  in  order  to  do  justice,  and  make  such  a  reduction  as 
sball  be  proper,  than  now  blindly  to  enact  a  law  which  may 
seriously  injure  the  industries  involved  and  the  business  of  the 
country   in  general. 

Wm.   H.    Taft. 

The  White  House,  August  17,  1911. 


The   Cotton,   Chemical   and   Metal   Schedules. 

To  the  House  of  Representatives: 

I  return,  without  my  approval,  H.  R.  12812,  entitled  "An  Act 
to  reduce  the  duties  on  manufactures  of  cotton." 

Though  its  title  mentions  only  manufactures  of  cotton,  the 
bill  in  fact  changes  also  all  the  duties  imposed  under  Schedule 
A  of  the  Payne  Act  upon  chemicals,  oils  and  paints,  and  under 
Schedule  C  upon  metals  and  manufactures  of  metals. 

My  objection  to  the  cotton  schedule  is  that  it  was  adopted 
without  any  investigation  or  information  of  a  satisfactory  char- 
acter as  to  the  effect  which  it  will  have  upon  an  industry  of  this 
country  in  which  the  capital  invested  amounted  in  1909  to  $821.- 
000,000 ;  the  value  of  the  product  to  $629,000,000 ;  the  number  of 
wage  earners  to  379,000,  making,  with  dependents,  a  total  of  at 
least  1,200,000  persons  affected;  and  the  wages  paid  annually 
amounted  to  $146,000,000.  The  bill  would  not  go  into  effect  by 
its  terms  until  January  1st  next,  and  before  that  time  a  full  report 
to  be  submitted  to  Congress  by  the  Tariff  Board,  based  upon  the 
most  thorough  investigation,  will  show  the  comparative  cost  of 
all  the  elements  of  production  in  the  manufacture  of  cotton  in 
this  and  other  countries.  The  investigation  by  the  Committee 
on  Ways  and  Means  of  the  House  did  not  cover  the  facts  show- 
ing this  comparative  cost,  for  the  reason  that  the  committee  was 
preparing  a  bill  on  a  tariff  for  revenue  basis  and  their  view  of 
a  proper  tariff  was  avowedly  at  variance  with  the  theory  of 
protection.  Pledged  to  support  a  policy  of  moderate  protection, 
I  cannot  approve  a  measure  which  violates  its  principle. 

Coming  now  to  the  amendments  to  Schedules  A  and  C,  I  have 
examined  the  records  of  Congress  for  the  purpose  of  informing 
myself  as  to  the  facts  and  arguments  which  in  the  opinion  of 
Congress  make  these  changes  in  the  law  expedient.  I  find  that 
there  was  practically  no  consideration  of  either  schedule  by  any 
committee  of  either  House.  There  was  no  report  of  any  com- 
mittee explaining  or  stating  the  basis  of  the  proposed  amend- 
ments. There  were  no  facts  presented  to  either  House  in  which 
I  can  find  material  upon  which  to  form  any  judgment  as  to  the 
effect  of  the  amendments  either  upon  American  industries  or 
upon  the  revenues  of  the  Government.  The  revisions  of  Sched- 
ules A  and  C  were  contained  in  amendments  offered  upon  the 
floor  of  the  Senate,  were  never  referred  to  any  committee,  and 
were  disposed  of  without  any  attempt  to  adjust  the  details  or 
to  furnish  the  basis  of  fact  for  adjusting  the  details  of  the  dif- 
ferent paragraphs  to  the  great  number  or  variety  of  industries 
to  be  affected,  with  a  view  to  any  degree  of  protection  whatever, 
however  moderate.  I  cannot  make  myself  a  party  to  dealing 
with  the  industries  of  the  country  in  this  way. 

The  industries  covered  by  metals  and  the  manufacture  of 
metals  are  the  largest  in  the  country,  and  it  would  seem  not  only 


VETOES  OF  DEMOCRATIC  TARIFF  BILLS.  2M 

wise  but  absolutely  essential  to  acquire  accurate  information  as 
to  the  effect  of  changes  which  may  vitally  affect  these  industries 
before  enacting  them   into   law. 

The  haste  in  the  preparation  of  the  bill  is  apparent  in  many 
of  its  pages.     Section  3  of  the  bill  reads  as   follows: 

Sec.  3.  That  on  and  after  the  day  when  this  act  shall  go  into 
effect  all  goods,  wares  and  merchandise  previously  imported  and 
hereinbefore  enumerated,  described  and  provided  for,  for  which 
no  entry  lias  been  made,  and  all  such  goods,  wares  and  merchan- 
dise previously  entered  without  payment  of  duly  and  under  bond 
for  warehousing,  transportation  or  any  other  purpose,  for  which 
no  permit  of  delivery  to  the  importer  or  his  agent  has  been  issued, 
shall  be  subjected  to  no  other  duty  upon  the  entry  or  withdrawn] 
thereof  than  the  duty  which  would  be  imposed  if  such  goods,- 
wares  or  merchandise  were  imported  on  or  afcer  that  date;  Pro- 
vided, however,  That  if  the  duties  above  provided  to  be  collected 
and  paid  shall,  as  to  any  article  or  articles,  be  greater  than  that 
provided  to  be  paid  by  the  present  existing  law,  less  30  per  cent., 
then  in  every  such  case  the  duty  or  duties  which  are  hereby 
levied,  and  which  shall  be  collected  and  paid  on  said  article  or 
articles  shall  be  a  sum  equal  to  the  duties  provided  to  be  levied, 
collected  and  paid  by  the  present  existing  law,  less  30  per  cent, 
and    not    greater. 

The  first  part  of  section  3,  without  the  proviso,  was  original 
section  2  of  the  bill  when  it  affected  only  the  cotton  schedule. 
It  is  now  placed  in  the  bill  after  the  amendments  to  the  chem- 
ical schedule.  The  proviso  was  added  in  the  Senate.  The  pro- 
viso was  doubtless  intended  to  make  certain  that  the  duties  in 
the  preceding  cotton  and  chemical  schedules  were  all  to  be  30 
per  cent,  less  than  the  rates  fixed  in  the  present  law.  But  this 
cannot  be.  The  proviso  is  so  placed  in  section  3  that  it  has  no 
operation  except  upon  the  rates  to  be  charged  on  articles  described 
in  the  first  half  of  section  3 — that  is,  on  the  goods  already  entered 
or  in  bond  or  transportation  and  which  have  not  paid  duty.  This 
would  give,  over  all  chemicals  now  in  bond  not  taken  out  before* 
the  law  goes  into  effect,  the  benefit  of  a  greater  reduction  by 
5  per  cent,  than  would  be  afforded  to  chemicals  imported  after 
the  passage  of  the  act.  The  result  is  an  inevitable  construction 
and  in  its  manifest  error  is  not  out  of  keeping  with  some  of  the 
other  features  of  the  bill  to  which  I  am  now  about  to  refer. 

Even  if  the  proviso  effects  the  purpose  evidently  intended  by 
the  authors  of  limiting  the  rates  of  the  whole  cotton  and  chem- 
ical schedules,  it  is  legislation  of  the  crudest  character,  for  two 
reasons :  It  imposes  on  customs  officers  in  every  entry  under 
those  schedules  the  burden  of  transmuting  the  specific  rates  of 
the  Payne  Act  to  ad  valorem  rates  under  the  proposed  bill,  a 
process  which  is  most  difficult  and  liable  to  error ;  secondly,  it 
imposes  a  duty  of  5  per  cent,  less  than  the  duty  intended  in  the 
whole  of  the  preceding  chemical  schedule,  and  furnishes  a  unique 
instance  in  tariff  legislation  of  imposing  two  different  rates  of 
duties  on  the  same  articles  in  succeeding  paragraphs  of  the  same 
bill. 

The  empirical  and  haphazard  character  of  this  bill  is  shown 
more  clearly,  perhaps,  in  the  amendment  to  Schedule  A  than  in 
any  other.  The  only  explanation  of  it  was  made  when  intro- 
duced as  an  amendment.  It  was  then  said  to  be  a  horizontal 
reduction  of  the  existing  chemical  schedule  by  one-fourth,  or  25 
per  cent,  of  the  present  duties.  It  was  said  that  the  specific 
duties  in  the  existing  law  had  been  transmuted  into  their  equiva- 
lent ad  valorem,  and  that  the  result  had  been  reduced  by  25  per 
cent.  The  method  used  in  reaching  this  equivalent  was  quite 
inaccurate,  as  is  shown  by  actual  inquiry  as  to  the  real  market 
price  of  each  article.  An  examination  made  by  an  expert 
chemist  of  the  Tariff  Board  into  certain  paragraphs  of  the  sched- 
ule and  verified  by  customs  experts  of  the  Treasury  Department 
shows  discrepancies  in  the  alleged  25  per  cent,  reduction  of  rates 
and  gives  ground  for  believing  that,  if  time  permitted,  a  close 
and  careful  analysis  of  all  the  paragraphs  would  show  many 
others.  Instead  of  a  horizontal  reduction  of  25  per  cent,  this 
examination  shows  that  the  reductions  made  by  the  amendment 
in  some  paragraphs  are  much  greater  than  25  per  cent.,  and 
that  in  others  the  change  is  a  substantial  increase  instead  of  a 
reduction  of  the  ,  present  duties. 

Thus,  boracic  acid  is  dutiable  under  the  present  law  at  3  cents 
per  pound.     The  amendment  imposes  a  duty  of  GO  per  cent,  ad 


220  VETOES  OF  DEMOCRATIC  TARIFF  BILLS. 

valorem.  At  the  foreign  price  of  6  to  6^  cents  per  pound  the 
amended  rate  would  be  from  3.6  to  3.9  cents  per  pound,  or  an 
actual  increase  in  the  duty  under  the  present  law  of  from  20  to 
30   per   cent.     Tartaric   acid   under   the   amendment   has    a   duty 

4  per  cent,  higher  than  that  of  existing  law.  Alum  under  the 
amendment  has  a  rate  10  per  cent,  higher  than  existing  law. 
Bleaching  powder  has  a  rate  under  the  amendment  that  is  90 
per  cent,  higher  than  the  existing  rate.  Zinc  oxide  has  an  in- 
crease of  rate  in  the  amendment  of  95  per  cent,  over  that  of  exist- 
ing law.  On  the  other  hand,  we  find  in  other  cases  a  greater 
reduction  than  the  proposed  25  per  cent.  Thus,  borax  is  given 
a  rate  in  the  amendment  which  is  a  reduction  of  80  per  cent, 
below  the  existing  rate,  while  commercial  chloroform  in  the 
amendment  has  a  reduction  of  90  per  cent,  from  the  present  rate. 
Hydrate,  or  caustic  soda,  is  given  a  rate  in  the  amendment  which 
is  a  50  per  cent,  reduction  from  the  present  rate.  A  curious  result 
appears  in  the  rate  fixed  for  alumina  hydrate  containing  less 
than  64  per  cent,  of  alumina,  and  the  same  containing  more  of 
alumina.  The  latter  is  a  finished  product  as  compared  with  the 
former,  but  the  latter  in  the  amendment  is  given  a  duty  of  only 

5  per  cent.,  while  the  raw  and  unfinished  product  has  a  rate  of 
15  per  cent,  ad  valorem. 

These  are  some  of  the  typical  inconsistencies  and  instances  of 
haste  in  preparation  and  of  the  error  of  calculation  in  the  pro- 
posed sweeping  horizontal  reduction  of  a  most  important  sched- 
ule in  the  tariff.  The  85  paragraphs  of  Schedule  A  do  not  refer 
to  the  various  manufactured  forms  of  one  or  more  materials. 
Each  paragraph  relates  to  a  different  subject,  the  duty  on 
which,  both  with  reference  to  its  revenue-producing  capacity  and 
with  reference  to  its  protecting  effect  upon  an  industry  of  this 
country,  ought  to  be  determined  by  separate  examination,  and 
the  taking  of  careful  evidence  of  experts,  because  the  subject 
is  peculiarly  one  for  experts.  The  figures  I  have  given  show 
that  the  method  pursued  in  making  what  was  thought  to  be  a 
reduction  of  25  per  cent,  would,  if  it  became  the  law,  produce  the 
greatest  confusion  in  respect  to  the  whole  chemical  schedule. 

But  the  most  remarkable  feature  of  this  amendment  to  the 
chemical  schedule  remains  to  be  stated.  The  internal  revenues 
of  this  country  to  the  extent  of  $160,000,000  are  dependent  on 
the  imposition  of  a  tax  of  $1.20  a  gallon  on  distilled  spirits  at 
100  degrees  proof,  which  is  a  liquid  consisting  of  50  per  cent, 
absolute  alcohol  and  50  per  cent,  water.  The  intrinsic  cost  of 
spirits  of  this  proof  varies  from  10  to  20  cents  a  gallon,  so  that 
the  enormous  tax  as  compared  with  the  intrinsic  value  of  the 
article  furnishes  a  motive  for  fraud  and  evasion  of  the  law 
stronger  than  in  the  case  of  any  commodity  within  the  range  of 
Federal  taxation.  It  has,  therefore,  been  necessary  in  all  customs 
legislation  to  protect  the  internal-revenue  system  against  the 
introduction  from  foreign  countries  of  alcohol  in  any  form  and 
in  association  with  any  other  article  except  upon  the  payment  of 
such  a  customs  duty  as  shall  make  it  unprofitable  to  import  the 
alcohol  into  this  country  to  be  used  in  competition  with  alcohol 
or  distilled  spirits  of  domestic  manufacture.  The  customs  duty 
on  a  proof  gallon  of  alcohol  is  $2.25.  The  care  and  anxious  con- 
cern with  which  Congress  has  heretofore  guarded  against  the 
introduction  of  alcohol  in  any  form  without  the  payment  of  suffi- 
cient duty  to  prevent  its  interfering  with  our  domestic  produc- 
tion and  the  payment  of  the  internal  tax  may  be  seen  in  at  least 
10  paragraphs  of  the  chemical  schedule  of  the  Payne  law  and 
previous  enactments. 

Thus,  in  paragraph  2  of  the  existing  law  it  is  provided  that 
vegatable,  animal  or  mineral  objects,  immersed  or  placed  in  or 
saturated  with  alcohol  shall  have  a  duty  of  60  cents  per  pound 
and  25  per  cent,  ad  valorem,  and  the  same  duty  is  imposed  in 
that  paragraph  on  alcoholic  compounds  not  specially  provided 
for.  Sixty  cents  a  pound  is  equivalent  to  60  cents  a  pint  of  the 
alcohol  or  distilled  spirits  used  al  proof,  and  this  is  equivalent 
to  $4.80  a  gallon  for  alcohol,  which  of  course  prevents  its  im- 
portation for  any  purpose  other  than  as  si>ecified  in  the  para- 
graph. 

Again,  in  paragraph  3,  chemical  compounds  containing  alcohol 
and   chemical    mixtures    containing   alcchol   have   a    duty   of   55 


VETOES  OF  DEMOCRATIC  TARIFF  BILLS.  221 

cents  per  pound,  which  would  protect  the  domestic  alcohol  by  a 
duty  of  $4.40  a  gallon. 

The  same  thing  is  true  in  paragraph  65,  covering  medicinal 
preparations  containing  alcohol,  or  any  preparations  in  which 
alcohol  is  used.  These  have  a  duty  of  £5  cents  per  pound,  which 
would  impose  a  duty  on  the  alcohol  used  of  at  least  $4.40  a 
gallon. 

Again,  on  perfumes,  including  cologne  and  other  toilet  waters 
containing  alcohol  or  in  the  preparation  of  which  alcohol  is 
used,  there  is  a  duty  of  60  cents  per  pound  and  50  per  cent,  ad 
valorem,  by  which  the  domestic  alcohol  used  in  American-made 
perfumes  is  protected  by  a  tax  of  $4.80. 

Under  the  present  bill  all  these  precautions  against  the  undue 
introduction  of  foreign  alcohol  in  articles  and  compounds  in- 
cluded in  the  chemical  schedule  are  in  fact  abolished  by  strik- 
ing out  the  specific  duties  per  pound.  Thus,  in  paragraph  2,  the 
specific  duty  per  pound  is  stricken  out  and  the  whole  rate  is 
fixed  at  50  per  cent,  ad  valorem.  In  paragraph  3  there  is  a 
similar  change ;  in  paragraph  05  the  change  is  to  45  per  cent, 
ad  valorem,  and  in  paragraph  69,  to  60  and  50  per  cent  ad 
valorem.  With  alcohol  at  a  foreign  cost  of  20  cents  a  gallon 
this  would  make  the  tax,  so  far  as  the  alcohol  is  concerned  in 
paragraph  2,  10  cents  a  gallon;  in  paragraph  3,  8  cents  a  gallon; 
in  paragraph  65,  9  cents  a  gallon,  and  in  paragraph  69,  from 
10  to  12  cents  a  gallon.  That  is,  the  alcohol  thus  introduced 
would  pay,  under  this  chemical  schedule,  lrom  8  to  12  cents  a 
gallon  duty  instead  of  $1.20  a  gallon  as  imposed  by  our  internal- 
revenue  system,  or  $2.25  a  gallon  as  imposed  by  our  customs 
laws  upon  the  introduction  of  proof  alcohol,  or  the  higher  rates 
as  fixed  in  the  existing  chemical  schedule.  Alcohol  is  also  used 
in  the  manufacture  of  collodion  and  fruit  ethers,  and  under  the 
existing  law  the  invasion  of  our  internal-revenue  system  is  here 
also  prevented  by  the  imposition  of  high  rates  per  pound  as  the 
equivalent  of  the  internal-revenue  tax.  By  this  amendment  the 
compensatory  duties  for  the  high  domestic  tax  on  alcohol  in 
collodion  and  ether  is  abolished,  and  if  the  bill  passed  the  do- 
mestic manufacturer  would  pay  $1.40  a  gallon  for  his  alcohol, 
while  his  importing  competitor  would  pay  but  30  cents. 

I  need  hardly  dwell  on  the  disatrous  effect  such  an  amend- 
ment in  reference  to  alcoholic  compounds  would  have  upon  the 
internal-revenue  system  of  taxing  distilled  spirits,  nor  need  I 
point  out  the  opportunities  of  evasion  and  fraud  thus  presented. 
Of  course,  the  change  was  not  intended,  but  if  this  bill  became 
law  it  would  be  made. 

This  bill  thus  illustrates  and  enforces  the  views  which  I  have 
already  expressed  in  vetoing  the  wool  bill  and  the  so-called 
free-list  bill,  as  to  the  paramount  importance  of  securing,  through 
the  investigation  and  reports  of  the  Tariff  Board,  a  definite 
and  certain  basis  of  ascertained  fact  for  the  consideration  of 
tariff  laws.  When  the  reports  of  the  Tariff  Board  upon  these 
schedules  are  received,  the  duties  which  should  be  imposed 
can  be  determined  upon  justly  and  with  intelligent  apprecia- 
tion of  the  effect  that  they  will  have  both  upon  industry  and 
upon  revenue.  Very  likely  some  of  the  changes  in  this  bill 
will  prove  to  be  desirable  and  some  to  be  undesirable.  So  far 
as  they  turn  out  to  be  just  and  reasonable  I  shall  be  glad  to 
approve  them,  but  at  present  the  proposed  legislation  appears 
to  be  all  a  matter  of  guesswork.  The  important  thing  is  to  get 
our  tariff  legislation  out  of  the  slough  of  guesswork  and  log- 
rolling and  ex  parte  statements  of  interested  persons,  and  to 
establish  that  legislation  on  the  basis  of  tested  and  determined 
facts,  to  which  shall  be  applied,  fairly  and  openly,  whatever 
tariff  principle  the  people  of  the  country  choose  to  adopt. 

William  H.  Taft. 
The  White  House,  August  22,  1911. 


The  advocacy  of  such  a  system  (the  recall)  suggests 
chaos  in  decisions,  irresnonsihillty  in  the  courts,  and, 
worse  than  all,  the  power  of  an  impatient  majority  to 
deny  every  right  which  well-ordered  institutions  guaran- 
tee   to    the    minority. — Hon.     Charles    Nagel. 


VETOES  OP  DEMOCRATIC  TARIFF  BILLS. 


The    Wool    ami    Woolens    Bill    of    1912. 

To  the  Ifoiisc  of  lk.ci>ra-:cutatu:c.s : 

On  December  20,  1911,  I  sent  a  message  to  the  Congress 
recommending  ;i  prompt  revision  of  the  tariff  on  wool  ami 
woolens.  1  urged  a  reduction  of  duties  which  should  remove  all 
the  excesses  and  Inequalities  of  the  schedule,  but  should  leave 
a  degree'  of  protection  adequate  to  maintain  the  continued  cni- 
plpyment  of  machinery  and  labor  already  established  in  that 
great  industry.  With  that  message  I  transmitted  a  report  of 
the  Tariff  Board,  which  furnished  for  the  first  time  the  informa- 
tion needed  to  frame  a  revision  bill  of  this  character,  and  recom- 
mended that  legislation  should  be  at  once  undertaken  in  the 
light  of  this  information. 

Despite  the  efforts  which  have  been  made  to  discredit  the  work 
of  the  Tariff  Board,  their  report  on  this  schedule  has  been  ac- 
cepted, with  scarcely  a  dissenting  voice,  by  all  those  familiar 
with  the  problems  discussed,  including  active  representatives 
of  organizations  formed  in  the  interest  of  the  public  and  the 
consumer.  Importers  and  merchants,  as  well  as  producers  and 
manufacturers,  have  testified  to  the  accuracy  and  impartiality 
of  these  findings  of  fact.  For  the  first  time  in  the  history  of 
American  tariffs  the  opportunity  has  been  afforded  of  securing 
a  revision  based  on  established  facts,  independent  both  of  the  ex 
parte  statements  of  interested  persons  and  the  guess-work  of 
political  theorists. 

My  position  has  been  made  perfectly  plain.  I  shall  stand  by 
my  pledges  to  maintain  a  degree  of  protection  necessary  to  off- 
set the  difference  in  cost  of  production  here  and  abroad,  and 
will  heartily  approve  of  any  bill  reducing  duties  to  this  level. 
Bills  have  been  introduced  into  Congress,  carefully  framed  and 
based  on  the  findings  of  the  Tariff  Board,  which,  while  main- 
taining the  principle  of  protection,  have  provided  for  sweeping 
reductions.  Such  a  bill  was  presented  by  the  minority  members 
of  the  Ways  and  Means  Committee,  which,  while  providing  pro- 
tection to  the  wool  grower,  reduces  the  duty  on  most  wools 
20  per  cent,  and  the  duties  on  manufactures  by  from  20  to  more 
than  50  per  cent,  and  gives  in  many  instances  less  net  protection 
to  the  manufacturer  than  was  granted  by  the  Gorman-Wilson 
Free  Wool  Act  of  1894. 

Instead  of  such  a  measure  of  thorough  and  genuine  revision, 
based  on  full  information  of  the  facts,  and  with  rates  properly 
adjusted  to  all  the  different  stages  of  the  industry,  there  is  now 
presented  for  my  approval  H.  R.  22195,  an  Act  to  reduce  the 
duties  on  wool  and  the  manufactures  of  wool,  a  bill  identical 
with  the  one  which  I  vetoed  in  August,  1911,  before  the  report 
of  the  Tariff  Board  had  been  made.  The  Tariff  Board's  report 
fully  and  completely  justifies  my  veto  of  that  date.  The  amount 
of  ad  valorem  duty  necessary  to  offset  the  difference  in  the  cost 
of  production  of  raw  wool  here  and  abroad  varies  with  every 
grade  of  wool.  Consequently,  an  ad  valorem  rate  of  duty  ad- 
justed to  meet  the  difference  in  the  cost  of  ijroduction  of  high- 
priced  wools  is  not  protective  to  low-priced  wools.  In  any  case, 
the  report  of  the  Tariff  Board  shows  that  the  ad  valorem  duty 
of  29  per  cent  on  raw  wool,  imposed  in  the  bill  now  submitted  to 
me,  is  inadequate  to  meet  this  difference  in  cost  in  the  case  of 
four-fifths  of  our  total  wool  clip.  The  disastrous  effect  upon 
ilie  business  of  our  farmers  engaged  in  wool  raising  can  not  be 
more  clearly  stated.  To  maintain  the  status  quo  in  the  wool- 
growing  industry,  the  minimum  ad  valorem  rate  necessary,  even 
for  high-grade  wool  in  years  or  high  prices,  would  be  35  per 
cent. 

The  rate  provided  in  this  bill  on  cloths  of  all  kinds  is  49 
per  cent.  The  amount  of  net  protection  given  by  this  rate,  in 
addition  to  proper  compensation  for  the  duty  on  wool,  depends 
on  (lie  ratio  between  the  cost  of  the  raw  material  and  the  cost 
of  making  the  cloth.  The  cost  of  the  raw  material  in  woolen 
and  worsted  fabrics  varies  in  general  from  50  per  cent  to  70 
nor  cent  of  the  total  value  of  the  fabric.  Consequently,  the  net 
protective  duty,  with  wool  at  29  per  cent,  would  vary  from  28.7 


VETOES  OF  DEMOCRATIC  TARIFF  BILLS.  223 

per  cent  to  34.5  per  cent.  In  the  great  majority  of  cases  these 
rates  are  inadequate  to  equalize  the  difference  in  the  cost  of 
manufacture  here  and  abroad.  This  is  especially  true  of  the 
finest  goods  involving  a  high  proportion  of  labor  co^t.  One 
of  the  striking  developments  of  the  last  few  years  has  been 
the  growth  in  this  country  of  a  fine  goods  industry.  The  rates 
provided  in  this  bill,  inadequate  as  they  are  for  most  of  the 
cloths  produced  in  this  country  would  make  the  continuance 
here  of  the  manufacture  of  fine  goods  an  impossibility. 

Even  more  dangerous  in  their  effects  are  the  rates  proposed  on 
tops  and  yarns.  Tops  are  the  result  of  the  first  stage  of  the  mak- 
ing of  raw  wool  into  cloth.  Yarn  is  the  result  of  the  second 
stage.  Taken  in  connection  with  a  rate  of  29  per  cent  on  wool, 
and  49  per  cent  on  cloth,  the  rates  of  32  per  cent  on  tops  and  35 
per  cent  on  yarn,  fixed  in  this  bill,  seem  impossible  of  justifica- 
tion. They  would  disrupt,  and  to  no  purpose,  the  existing  ad- 
justment, within  the  industry,  of  all  its  different  branches.  It 
is  improbable  in  the  highest  degree  that  raw  wool  would  be 
imported  in  great  quantities  when  the  cloth-maker  can  import 
his  tops  at  a  duty  of  32  per  cent  and  yarns  at  a  duty  of  35 
per  cent. 

The  report  of  the  Tariff  Board  shows  the  difference  in  rela- 
tive costs  to  be  uniformly  greater  than  the  amount  of  protec- 
tion yarns  given  by  this  bill.  In  a  year  of  low  prices,  the 
net  protection  gained  by  the  proposed  rates  would  not  be  more 
than  half  the  difference  in  costs.  The  Free  Wool  Act  of  1894 
gave  a  protective  rate  of  40  per  cent  on  all  yarns  over  40  cents 
a  pound  in  value,  with  free  raw  material.  The  present  bill 
give  only  35  per  cent  in  such  yarns  with  a  duty  of  29  per  cent 
on  the  raw  material.  The  great  increase  in  the  imports  of  tops 
and  yarns,  which  would  result  from  the  rates  in  the  bill  now 
submitted  to  me,  would  destroy  the  effect  of  the  protection 
the  raw  wool  and  at  the  same  time  would  be  at  the  cost 
of  widespread  disaster  to  the  wool-combing  and  spinning 
branches-  of  the  industry.  The  last  fifteen  years  has  witnessed 
a  great  growth  in  top  making  and  worsted  spinning  in  this 
country,  and  the  capacity  of  the  plants  is  now  equal  to  do- 
mestic requirements.  Under  the  rates  proposed,  such  plants 
could  be  continued,  if  at  all,  only  by  writing  off  most  of  the 
investment  as  a  net  loss  and  by  a  reduction  of  wages.  To  sum 
up  then,  most  of  the  rates  in  the  submitted  bill  are  so  low  in 
themselves  that,  if  enacted  into  law,  the  inevitable  result  would 
be  the  irretrievable  injury  to  the  wool-growing  industry,  the 
enforced  idleness  of  much  of  our  wool-combing  and  spinning 
machinery  and  of  thousands  of  looms,  and  the  consequent 
throwing  out  of  employment  of  thousands  of  workmen. 

In  view  of  these  facts,  in  view  of  the  platform  upon  which  I 
was  elected,  in  view  of  my  promise  to  follow  and  maintain  the 
protective  policy,  no  course  is  open  to  me  but  to  withhold  my 
approval  of  this  bill.  I  am  very  much  disappointed  that  such 
a  bill  is  a  second  time  presented  to  me.  I  have  inferred  from 
the  speeches  made  in  both  the  House  and  Senate  that  the 
members  of  the  majority  in  both  Houses  are  deeply,  impressed 
with  the  necessity  of  reducing  the  tariff  under  the  present  act 
on  wool  and  woolens;  that  they  do  not  propose  to  stand  on 
the  question  of  the  amount  of  reduction  or  to  insist  that  it  must 
be  enough  necessarily  to  satisfy  the  principle  of  tariff  for  rev- 
enue only,  but  that  they  are  willing  to  accept  a  substani  ial 
reduction  in  the  present  rates  in  order  that  the  people  might 
be  relieved  from  the  possibility  of  oppressive  prices  due  to 
excessive  rates.  I  strongly  desire  to  reduce  the  duties,  pro- 
vided only  the  protection  system  be  maintained,  and  that  in- 
dustries now  established  be  not  destroyed.  It  now  appears  from 
the  Tariff  Board's  report,  and  from  Mil's  which  have  been  in- 
troduced into  the  House  and  the  Senate,  that  a  bill  may  be 
drawn  so  as  to  be  within  the  requirements,  of  protection  and 
still  offer  a  reduction  of  20  per  cent  on  most  wool  and 
of  from  20  per  cent  to  50  per  cent  on  cloths.  I  can  not 
act  upon  the  assumption  that  the  controlling  majority  in  either 
House  will  refuse  to  pass  a  bill  of  this  kind,  if  in  fact  it  a  ■- 
complishes  so   substantial  a  reduction,  merely  because    members 


224  VETOES  OF  DEMOCRATIC  TARIFF  BILLS. 

of  the  opposing  party  and  the  Executive  unite  in  its  approval. 
I,  therefore,  urge  upon  Congress  that  it  do  not  adjourn  without 
taking  advantage  of  the  plain  opportunity  thus  substantially 
to  reduce  unnecessary  existing  duties.  I  appeal  to  Congress  to 
reconsider  the  measure,  which  I  now  return  without  my  ap- 
proval, and  to  adopt  a  substitute  therefor  making  substantial 
reductions  below  the  rates  of  the  present  act,  which  the  Tariff 
Board  shows  possible,  without  destroying  any  establisned  in- 
dustry or  throwing  any  wage-earners  out  of  employment,  and 
which  I  will  promptly  approve. 

WM.  H.  TAFT. 
The  White  House,  August  9,  1912. 


The  Iron  and  Steel  Schedule,  1912. 

To  the  House  of  Representatives : 

I  return,  with  my  objections,  H.  R.  18642,  a  bill  entitled  "An 
act  to  amend  an  act  entitled  'An  act  to  provide  revenue,  equal- 
ize duties,  and  encourage  the  industries  of  the  United  States, 
and  for  other  purposes,'  "  approved  August  5,  1909. 

This  bill  provides  for  a  complete  revision  of  Schedule  C  of 
the  tariff  law,  relating  to  metals  and  manufactures  of  metals. 
In  committee  and  in  the  consideration  of  the  majority  who 
passed  the  bill  the  important  part  of  it  seems  to  have  been 
the  basic  manufactures  of  iron  and  steel,  and  most  of  the  in- 
formation wThich  was  obtained  and  discussed  was  in  reference 
to  that  manufacture.  The  truth  is  that  iron  and  steel  as  pri- 
mary products  are  less  than  one-third  in  value  of  the  subject 
matter  covered  by  it ;  and  that  there  may  be  no  misunderstand- 
ing in  regard  to  this,  I  present,  as  an  appendix,  a  table  pre- 
pared by  the  Census  Bureau  showing  that  included  in  Schedule 
C  are  59  allied  industries  of  sufficient  importance  to  justify  sepa- 
rate classification,  study,  and  report  by  the  Census  Bureau,  all 
of  which  are  directly  affected  by  the  bill  under  consideration. 

If  only  the  primary  products  of  iron  and  steel  were  affected 
by  this  bill,  or  if  they  constituted  the  larger  part  of  the  values 
involved  in  Schedule  C.  the  consideration  of  the  bill  for  pur- 
poses of  approval  or  disapproval  would  be  easier,  but  it  is  not 
within  my  power  to  separate  these  various  industries.  The  bill 
is  presented  to  me  as  a  whole  and  must  be  approved  or  disap- 
proved as  a  whole. 

The  table  furnished  showed  that  "foundry  and  machine  shop 
products,"  which  are  secondary  products  of  the  iron  and  steel 
industry,  are  made  by  more  than  13,000  competing  establish- 
ments, with  an  invested  capital  of  more  than  a  billion  and  a  half 
dollars,  with  more  than  half  a  million  wage  earners  employed, 
and  producing  nearly  a  billion  and  a  quarter  dollars  in  value 
of  products  annually.  Every  dollar  of  this  capital  and  every 
workman  employed  in  the  industry  is  directly  affected  by  the 
bill,  and  I  can  not  find,  either  in  the  report  of  the  Committee 
on  Ways  and  Means  of  the  House  or,  to  any  extent,  in  the  dis- 
cussion of  the  schedule,  that  serious  consideration  has  been 
given  to  the  effect  of  this  revision  on  this  particular  branch  of 
the  industry,  and  the  same  thing  is  true  of  more  than  two- 
thirds  of  the  industries  covered  by  the  schedule. 

It  appears  in  the  discussion  of  this  revision  now  presented 
to  me  for  consideration  that  no  public  hearings  have  been  given 
by  the  Ways  and  Means  Committee  of  the  House,  on  the  ground 
that  it  would  thereby  cause  delay.  The  Ways  and  Means  Com- 
mittee avowed  that  the  principle  of  protection  had  not  been 
considered,  but  that  in  framing  the  present  revision  of  the  metal 
schedule  the  committee  had  "adopted  the  general  principle  of 
reducing  all  duties  to  a  revenue  basis,  so  far  as  practicable, 
except  in  those  cases  where  more  cogent  consideration  than 
those  relating  to  the  fiscal  policy  of  the  Government  dictated 
the   transfer   of   given   items   to   the   free   list."     This   makes   a 


VETOES  OF  DEMOCRATIC  TARIFF  BILLS.  225 

clear-cut  issue  between  the  protective  policy  and  that  of  a  tariff 
for  revenue  only,  and  without  fuller  information,  therefore,  I 
am  obliged  to  treat  this  bill  as  a  revenue  bill,  and  one  in  which 
the  consideration  of  preserving  the  industry  by  maintaining  a 
tariff  necessary  to  do  so  had  little  weight.  There  is  nothing  to 
show  me  that  the  duties  provided  in  the  bill  will  equal  the  dif- 
ference in  the  cost  of  production  here  and  abroad  in  the  great 
lines  of  industries,  and  that  the  wages  of  workmen  will  not  be 
reduced  by  a  measure  which  avowedly  discards  entirely  the 
principle  of  fair  protection.  It  should  be  noted  that  the  labor 
employed  in  the  secondary  industries,  which  has  had  so  little 
consideration  in  this  bill,  is  in  a  large  measure  high-grade, 
skilled  labor,  commanding  a  high  level  of  wages. 

This  schedule  was  included  in  the  general  tariff  revision  of 
1909,  at  which  time  public  hearings  were  given,  attended  by 
importers,  domestic  producers,  employees,  and  consumers,  and 
the  rates  then  on  many  of  its  items  were  heavily  cut,  ranging 
from  10  to  75  per  cent,  and  it  would  seem  now  that  a  thorough 
study  of  each  one  of  these  separate  industries  should  at  least 
be  made,  that  the  Executive  and  Congress  as  well  might  act 
wisely  and  intelligently  upon  them,  in  order  to  avoid  a  further 
revision  at  an  early  date  when  the  facts  concerning  them  could 
be  ascertained. 

The  products  of  many  of  these  industries  affected  by  this 
bill  do  not  enter  directly  into  the  daily  consumption  of  the 
people.  The  consumers  of  these  products  are,  to  a  large  extent, 
manufacturers  using  these  articles  in  further  processes  of  pro- 
duction. There  is  no  evidence  of  any  widespread  demand  from 
such  consumers  for  a  revision  of  the  rates  on  these  articles,  and 
for  this  reason  a  sufficient  time  may  well  be  taken  to  give  the 
study  to  the  respective  industries  which  their  importance  would 
seem  to  demand. 

I  am  not  prepared  to  say  that  there  are  no  items  in  this 
schedule  which  might  not  well  be  reduced,,  but  the  general 
average  ad  valorem  rate  of  duty  under  it,  taken  as  a  whole  for 
the  year  1911,  is  32.03  per  cent,  as  against  37.97  per  cent  in 
1896  under  the  Wilson  law,  or  an  apparent  reduction  of  15.6 
per  cent  of  the  Wilson  duties.  The  Dingley  rates  for  this 
schedule  in  1909  were  38.09  per  cent,  showing  a  reduction  in 
1911  for  the  present  law  of  15.9  per  cent  of  the  Dingley  rates. 
Indeed,  there  is  no  year  since  1883  .when  the  Government  sta- 
tistics show  as  low  an  ad  valorem  rate  of  duty  tor  this  schedule 
as  is  shown  in  1911,  and  it  does  not  appear  that  schedule  sta- 
tistics were  kept  prior  to  1883,  so  that  no  comparison  can  be 
made   prior   to   that   time. 

There  is  little  logical  relation  between  the  reductions  made 
by  this  bill  in  the  schedtile.  For  example,  steam  engines  and 
machine  tools  in  the  present  law  are  dutiable  at  30  per  cent. 
In  this  revision  steam  engines  are  reduced  to  15  per  cent,  and 
the  whole  machine-tool  industry  is  put  on  the  free  list,  without 
any  reason  whatever  being  given  in  the  report  of  the  W7ays  and 
Means  Committee  in  either  case  for  such   action. 

The  term  "machine  tools"  has  already  been  the  subject  of 
much  litigation,  and  its  scope  should  be  clearly  defined  before 
the  great  variety  of  articles  which  it  now  seems  to  cover  are 
placed  on  the  free  list. 

The  expansion  of  our  foreign  trade  would  seem  to  demand 
that  a  transfer  to  the  free  list,  like  the  one  made  in  this  bill, 
of  such  an  enormous  range  of  undetermined  products  and  the 
opening  of  the  best  market  in  tho  world  to  free  and  unrestricted 
competition  should  not  be  mnde  without  at  the  same  time  at 
least  securing,  as  is  the  case  now  of  specified  agricultural  im- 
plements, the  privilege  of  a  like  free  entry  into*  the  markets  of 
our  competitors. 

It  is  further  difficult  to  understand  by  what  process  of  rea- 
soning it  is  possible  to  justify  a  transfer  to  the  free  list  of  a 
great  line  of  finished  articles,  while  nearly  every  one  of  the 
crude  products  from  which  they  are  made  are  retained  on  the 
dutiable  list. 


226  VETOES  OP  DEMOCRATIC  TARIFF  BTLL8. 

A  bill  for  a  complete  revision  of  this  schedule  was  presented 
to  me  a  yv.w  ago  in  the  extra  session  of  this  Congress.  Many 
increases  and  decreases  of  rates  are  now  made  from  thO&6 
named  in  the  former  measure.  The  changes  are  not  explained 
and  indicate  a  hasty  method  pursued  in  the  preparation  of 
both;  Js  it  not  fair  to  ask',  either  on  the  basis  of  protection  or 
revenue,   wliieli   was   ri^ht? 

On  the  whole,  therefore,  I  am  not  willing-  to  approve  of  legis- 
lation of  this  hind,  which  vitally  atVcets  not  only  millions  of 
worki  ngmen  and  the  families  dependent  on  tnem,  but  hundreds 
of  millions  of  dollars'  worth  of  stocks  of  goods  in  the  hands  of 
storekeepers  and  distributors  generally,  without  first  providing 
for  a  careful  and  disinterested  inquiry  into  the  conditions  of 
the  Whole   industry. 

From  the  outset  of  my  administration  I  have  urged  a  revision 
of  the  tariff  based  on  a  nonpartisan  study  of  the  facts.  I  have 
provided  the  means  for  securing  such  information  in  the  appoint- 
ment of  a  Tariff  Board.  Their  thorough  work,  already  com- 
pleted on  several  schedules,  has  justified  my  confidence  in  this 
method.  The  principle  is  indorsed  by  chambers  of  commerce 
and  boards  of  trade  in  almost  every  city  of  importance  in  the 
country.  The  proposed  bill  has  not  been  framed  on  the  basis  of 
any  such  study  of  the  industry. 

Avowedly  its  rates  are  fixed  with  no  consideration  of  anything 
but  revenue.  The  principle  of  protection  is  disregarded  entire- 
ly, and,  therefore,  it  is  not  too  much  to  say  that  the  effect  of 
these  sweeping  changes  on  the  welfare  of  those  engaged  in  these 
varied  industries  has  been  disregarded. 

Wm.  H.  Taft. 

The  White  House,  August  14,  1912. 


Mr.  Bryan  asks  me  what  I  -would  do  with  the  trusts.  I  answer 
that  I  -would  restrain  unlawful  trusts  with  all  the  efficiency  of 
injunctive  process  and  would  punish  with  all  the  severity  of  crim- 
inal prosecution  every  attempt  on  the  part  of  aggregated  capital 
to   suppress    competition. — Hon.    Wm.    H.    Taft,   at    Columbus,    Ohio. 

Government  must  be  honest,  business  dealing  must  be  square 
with  the  principles  of  right  and  justice,  the  things  that  are  pure 
and  clean  and  of  good  repute  must  be  exalted?  and  underlying  the 
whole  fabric  of  our  institutions  we  must  safeguard  our  schools 
and  keep  pure  and  undefiled,  as  the  very  foundation  of  our  liber- 
tics,  the  American  home. — Postmaster-General  Cortelyou  on  Lin- 
coln's Influence  on  American  Life. 

The  course  of  the  Republican  party  since  its  organization  in 
lSi><>,  and  its  real  assumption  of  control  In  1801,  down  to  the  present 
day,  is  remarkable  for  the  foresight  ami  ability  of  Its  leaders,  for 
the  discipline  and  solidarity  of  its  members,  for  its  efficiency  and 
deep  sense  of  responsibility  for  the  preservation  and  successful 
maintenance  of  the  Government,  and  for  the  greatest  resourceful- 
ness in  meeting  the  various  trying  and  difficult  Issues  which  a 
history  of  now  a  full  half-century  have  presented  for  solution.— 
Hon.  Wm.  H.  Taft,  at  Kansas  ity,  Mo. 

Under  our  policy  of  free  trade  we  have  lost  that  commercial 
and  industrial  superiority  we  acquired  under  the  policy  of  strict 
protection.  Our  policy  of  direct  taxation  bears  heavily  upon  our 
industries  and  reacts  on  the  working  classes  in  reduction  of  -wages 
and  employment.  Our  agriculture  has  been  ruined  mid  our  indus- 
tries are  struggling  hard  for  existence.  Other  nations,  under  a 
policy  of  strict  protection,  are  beating  us  in  the  race  of  competi- 
tion, not  only  In  neutral,  but  in  our  own  markets. — Sir  Guilford 
Lu   Molesworth   on   Free   Trade   in    England. 

It  is  a  mistake  to  assume  that  the  Supreme  Court  in  its  decision 
in  the  Oregon  case  upholds  the  initiative  and  referendum  method 
of  legislation,  or  even  the  right  of  a  State  under  the  Federal  Con- 
stitution  to  adopt  it.  The  Pacific  States  Telephone  and  Telegraph 
Company,  in  refusing  to  pay  a  tax  imposed  by  a  law  enacted  through 
the  initiative  and  referendum  process,  took  the  ground  that  the  act 
was  unconstitutional  because  the  adoption  of  that  process  in  the 
Constitution  of  the  State  deprived  it  of  a  republican  form  of 
government,  which  the  United  States  is  bound  by  the  Federal  Con- 
stitution to  "guarantee  to  every  State  in  this  Union."  The  Supreme 
Court  declined  to  pass  upon  the  question  of  the  constitutionality 
of  this  tax  law  because  it  would  involve  the  question  whether  the 
State  of  Oregon  has  had  a  republican  form  of  government  since 
the  adoption  in  its  Constitution  of  the  initiative  and  referendum 
method,  of  legislation,  and  that  is  not  a  judicial  but  a  poliienl 
qnesion,  which  It  is  for  Congress  to  determine.  That  is  all  that 
the   court   has   really   decided. — New    York   "Journal    of   Commerce." 


THE  ECONOMY  AND  EFFICIENCY 
COMMISSION. 


PRESIDENT    TAFT'S    EFFOKTS    IN    BEHALF    OF    ECONOMY    AND    INCREASED 
EFFICIENCY    IN    GOVERNMENTAL    SERVICES. 

President  Taft  has  been  for  years  an  advocate  of  a  care- 
ful readjustment  and  co-ordination  of  the  conditions  under 
which  the  various  branches  of  the  governmental  services  are 
conducted,  both  with  reference  to  expenditures  and  the  effi- 
ciency of  the  services  performed. 

His  experience,  first  as  a  judge,  then  in  the  Philippine 
Islands,  Cuba,  Panama,  in  the  War  Department  and  finally 
in  the  White  House  gave  him  an  acquaintance  with  the  busi- 
ness operations  and  methods  of  the  various  branches  of  the 
governmental  service,  and  through  this  view,  from  the  various 
standpoints,  he  recognized  the  heterogeneous  and  unsatis- 
factory conditions  under  which  the  governmental  business  is 
administered.  This  condition  is  a  natural  result  of  the  gradual 
development  of  the  various  branches  of  the  governmental 
service  through  their  conduct  by  various  officers  changing 
from  administration  to  administration  or  by  advancement  or 
otherwise.  As  a  result,  the  business  methods  utilized  in  the 
various  branches  of  the  service  differ  widely  and  are  in  some 
inadequate;  in  many  cases  cumbersome,  and  in  numerous 
instances  unnecessarily  expensive.  Moreover,  the  various 
sections  of  the  governmental  machine,  established  by  dif- 
ferent individuals,  and  having  no  system  for  the  general 
direction  and  co-ordination  thereof,  in  many  instances  have 
failed  to  adjust  themselves  to  other  branches  of  the  service 
and  to  thus  render  the  full  possibility  of  their  value. 

This  condition,  which  President  Taft  had  noted  in  the  vari- 
ous branches  of 'the  government  service,  especially  when  he 
came  to  the  head  of  a  department  and  then  to  the  head  of 
the  Government,  appealed  to  him  as  one  which  would  justify 
a  thorough  study  by  competent  men,  expert  in  business 
methods  and  the  analysis  thereof,  who  were  experienced  in 
adjusting  the  various  features  of  great  business  organizations. 

To  this  end  he  laid  the  matter  before  Congress  in  the  early 
part  of  his  administration  and  recommended  the  creation  of 
a  commission  of  competent  persons  for  this  task.  His  recom- 
mendation met  with  favorable  consideration  by  Congress,  and 
an  appropriation  of  $100,000  was  made  on  June  25,  1910, 
"To  enable  the  President  to  inquire  into  the  methods  of 
transacting  the  public  business  of  the  Executive  Department 
and  other  government  establishments,  and  to  recommend  to 
Congress  such  legislation  as  may  be  necessary  to  carry  into 
effect  changes  found  to  be  desirable  that  cannot  be  accom- 
plished by  executive  action  alone." 

This  commission  was  appointed,  made  up  of  experts  of 
high  character,  and  has  already  given  evidence  of  the  wisdom 
of  this  vast  undertaking,  as  proposed  by  President  Taft. 

The  Economy  and  Efficiency  Commission,  in  the  partial 
study  which  it  has  thus  far  made  of  the  details  of  the  methods 
by  which  the  services  of  the  Government  is  conducted  in  its 
enormous  and  varied  branches,  has  formulated  methods  by 
which  the  expenditures  of  money  may  be  reduced  by  many 
millions  of  dollars  anually,  and  the  service  at  the  same  time 
greatly  improved. 

An  outline  of  the  work  thus  far  performed  was  presented 
to  Congress  by  President  Taft  in  a  message  in  January  of  the 

227 


228  THE  ECONOMY  AND  EFFICIENCY  COMMISSION. 

present  year.     With  that  message  he  transmitted  a  report  from 
the  commission.     At  that  time  he  said: 

"This  report  .  .  .  shows  in  great  detail,  by  means  of 
outlines,  not  only  the  departments,  commissions,  bureaus  and 
offices  through  which  the  Government  performs  its  various 
activities,  but  also  the  sections,  shops,  fields',  stations,  etc., 
constituting  the  subordinate  divisions  through  which  the  work 
is  actually  done.  It  shows  for  the  service  at  Washington  each 
such  final  unit  as  a  laboratory,  library,  shop  and  adminis- 
trative sub-division;  and  for  the  service  outside  of  Wash- 
ington, each  station  and  point  at  which  any  activity  of  the 
Government  is  carried  on. 

"From  these  outlines,"  he  adds,  "it  is  possible  to  determine 
not  only  how  each  department,  bureau  and  operating  unit  is 
organized,  but  also  by  classifying  these  units  by  character  and 
geographical  location,  compare  the  units  of  a  like  character 
that  exist  in  Washington,  and  the  number  and  character  of 
services  of  the  Government  in  each  city  or  other  point  in  the 
United  States.  With  this  information  available  it  is  possible 
to  study  any  particular  activity,  or  the  problem  of  maintaining 
any  service  at  any  given  city  or  point.' 

"Information  of  this  character,"  he  adds,  "has  never -before 
been  available.  Administrative  officials  have  been  called  upon 
to  discharge  their  duties  without  that  full  knowledge  of  the 
machinery  under  their  direction,  which  is  so  necessary  to  the 
exercise  of  effective  control;  much  less  have  they  had  informa- 
tion regarding  agencies  in  other  service  that  might  be  made 
use  of.' 

"So  dependent,"  he  says,  "are  other  reforms  upon  the  proper 
grouping  of  service  that  I  have  instructed  the  commission 
to  indicate  in  its  report  the  changes  which  should  be  made  in 
the  existing  organization,  and  to  proceed  in  the  same  way  as 
would  far-seeing  architects  or  engineers  in  planning  for  the 
improvement  and  development  of  a  great  city.  My  desire  is 
to  secure  and  furnish  to  the  Congress  a  scheme  or  organiza- 
tion that  could  be  used  as  a  basis  of  discussion  and  action  for 
years  to  come.  In  the  past  services  have  been  created  one  by 
one,  as  exigencies  have  seemed  to  demand,  with  little  or  no 
reference  to  any  scheme  or  organization  of  the  Government 
as  a  whole.  I  am  convinced  that  the  time  has  come  when  the 
Government  should  take  stock  of  all  its  activities  and  agencies, 
and  formulate  a  comprehensive  plan  with  reference  to  which 
future  changes  may  be  made." 

The  details  of  the  tremendous  work  performed  by  this  Com- 
mission of  Economy  and  Efficiency  during  the  two  years  of 
its  operation,  the  study  by  its  expert  officers  and  employes 
of  the  conditions  in  the  various  branches  of  the  governmental 
service,  the  opportunities  for  the  reduction  of  expenses  and 
the  improvement  of  the  service,  the  consolidation  of  certain 
lines  of  work  and  the  enlargement  of  others,  where  new  fields 
in  the  interests  of  commerce  and  industries  are  opening,  cannot 
be  presented  in  detail  in  a  publication  of  this  character. 
Suffice  it  to  say  that  this  plan  of  a  business-like  organization 
of  the  business  affairs  of  the  Government,  developed  by  Presi- 
dent Taft,  has  made  such  progress  as  to  indicate  that  if  carried 
to  completion  and  actual  operation,  the  saving  in  expenditures 
will  be  many  millions  of  dollars  annually,  and  the  service  of 
the  Government  to  its  citizens   greatly  improved. 

So  evident  has  been  the  value  of  the  work  thus  far  per- 
formed and  the  promises  which  it  gives  of  a  business-like  ad- 
justment and  correlation  of  the  various  branches  of  tlr3  gov- 
ernmental service  that  Congress,  in  the  appropriations  for  the 
present  fiscal  year  appropriated  a  liberal  sum  for  a  continua- 
tion and  completion  of  the  studies  thus  begun.  Even  those 
who  were  for  partisan  reasons  disposed  to  criticise  the  plans 
have  recognized  in  the  work  thus  far  performed  such  vast 
possibilities  of  legitimate  economy,  and  at  the  same  time  in- 
creased efficiency  in  government  expenses  and  operations  that 
the  objections  originally  offered  to  the  necessary  appropriation 
for  the  continuation  of  the  work  were  overcome,  and  the  neces- 
sary allowance  made   in  the  provision   for  the  operating  ex- 


THE  ECONOMY  AND  EFFICIENCY  COMMISSION.  229 

penses  of  the  Government  for  the  fiscal  year  ending  June  30, 
1913. 

The  President's  views  upon  this  subject  are  outlined  in 
the  opening  part  of  a  message  sent  to  Congress  on  January 
17,  1912,  as  follows:  . 

"Efficiency  and  economy  in  the  government  service  have  been 
demanded  with  increasing  insistence  for  a  generation.  Real 
economy  is  the  result  of  efficient  organization.  By  perfecting 
the  organization  the  same  benefits  may  be  obtained  at  less  ex- 
pense. A  reduction  in  the  total  of  the  annual  appropriations  is 
not  in  itself  a  proof  of  economy,  since  it  is  often  accompanied 
by  a  decrease  in  efficiency.  The  needs  of  the  Nation  may  de- 
mand a  large  increase  of  expenditure,  yet  to  keep  the  total 
appropriations  within  the  expected  revenue  is  necessary  to  the 
maintenance  of  public  credit. 

"Upon  the  President  must  rest  a  large  share  of  the  responsi- 
bility for  the  demands  made  upon  the  treasury  for  the  current 
administration  of  the  executive  branch  of  the  Government. 
Upon  the  Congress  must  rest  responsibility  for  those  grants  of 
public  funds  which  are  made  for  other  purposes. 

"Recognizing  my  share  of  responsibility  for  efficient  and  eco- 
nomical administration,  I  have  endeavored,  during  the  past  two 
years,  with  the  assistance  of  heads  of  departments,  to  secure 
the  best  results.  As  one  of  the  means  to  this  end  I  requested 
a  grant  from  Congress  to  make  my  efforts  more  effective. 

"An  appropriation  of  $100,000  was. made  June  25,  1910,  'to 
enable  the  President  to  inquire  into  the  methods  of  transacting 
the  public  business  of  the  executive  departments  and  other 
government  establishments,  and  to  recommend  to  Congress 
such  legislation  as  may  be  necessary  to  carry  into  effect 
changes  found  to  be  desirable  that  cannot  be  accomplished  by 
executive  action  alone.'  I  have  been  given  this  fund  to  enable 
me  to  take  action  and  to  make  specific  recommendations  with 
respect  to  the  details  of  transacting  the  businesss  of  an  organi- 
zation whose  activities  are  almost  as  varied  as  those  of  the 
entire  business  world.  The  operations  of  the  Government 
affect  the  interest  of  every  person  living  within  the  jurisdic- 
tion of  the  United  States.  Its  organization  embraces  stations 
and  centers  of  work  located  in  every  city  ana  in  many  local 
sub-divisions  of  the  country.  Its  gross  expenditures  amount 
to  nearly  $1,000,000,000  annually.  Including  the  personnel 
of  the  military  and  naval  establishments,  more  than  400,000 
persons  are  required  to  do  the  work  imposed  by  law  upon  the 
executive  branch  of  the  Government. 

"This  vast  organization  has  never  been  studied  in  detail  as 
one  piece  of  administrative  mechanism.  Never  have  the 
foundations  been  laid  for  a  thorough  consideration  of  the  re- 
lations of  all  of  its  parts.  No  comprehensive  effort  has  been 
made  to  list  its  multifarious  activities  or  to  group  them  in 
such  a  way  as  to  present  a  clear  picture  of  what  the  Govern- 
ment is  doing.  Never  has  a  complete  description  been  given 
o£  the  agencies  through  which  these  activities  are  performed. 
At  no  time  has  the  attempt  been  made  to  study  all  of  these 
activities  and  agencies  with  a  view  to  the  assignment  of  each 
activity  to  the  agency  best  fitted  for  its  performance,  to  the 
avoidance  of  duplication  of  plant  and  work,  to  the  integra- 
tion of  all  administrative  agencies  of  the  Government,  so  far 
as  may  be  practicable,  into  a  unified  organization  for  the  most 
effective  and  economical  dispatch  of  public  business. 

"Notwithstanding  that  voluminous  reports  are  compiled 
annually  and  presented  to  the  Congress,  no  satisfactory  state- 
ment has  ever  been  published  of  the  financial  transactions  of 
the  Government  as  a  whole.  Provision  is  made  for  due  ac- 
countability for  all  moneys  coming  into  the  hands  of  officers  of 
the  Government,  whether  as  collectors  of  revenue  or  dis- 
bursing agents,  and  for  insuring  that  authorizations  for  ex- 
penditures as  made  by  law  shall  not  be  exceeded.  But  no  gen- 
eral system  has  ever  been  devised  for  reporting  and  presenting 
information  regarding  the  character  of  the  expenditures  made 
in  such  a  way  as  to  reveal  the  actual  costs  entailed  in  the 
operation   of   individual   services   and   in   the   performance   of 


230  THE  ECONOMY  AND  EFFICIENCY  COMMISSION.  | 

particular  undertakings,  nor  in  such  a  way  as  to  make  possible 
the  exercise  of  intelligent  judgment  regarding  the  discretion 
displayed  in  making  expenditure  and  concerning  the  value  of 
the  results  obtained  when  contrasted  with  the  sacrifices  re- 
quired. Although  earnest  efforts  h»ave  been  put  forth  by  ad- 
ministrative officers,  and  though  many  special  inquiries  have 
been  made  by  the  Congress,  no  exhaustive  investigation  has 
ever  before  been  instituted  concerning  the  methods  employed 
in  the  transaction  of  public  business  with  a  view  to  the  adop- 
tion of  the  practices  and  procedure  best  fitted  to  secure  the 
transaction  of  such  business  with  maximum  dispatch,  economy 
and  efficiency." 


We  seek  physical  power  because  it  may  advance  our  moral  and 
intellectual  well-being. — Hon.  C.  W.  Fairbanks,  at  Lancaster,  Mass., 
June  30,  1903. 

Duty  determines  destiny.  Destiny  which  results  from  duty  per- 
formed may  bring  anxiety  and  perils,  but  never  failure  and  dis- 
honor. Pursuing  duty  may  not  always  lead  by  smooth  paths.  Another 
course  may  look  easier  and  more  attractive,  but  pursuing  duty  for 
duty's  sake  is  always  sure  and  safe  and  honorable. — President 
McKinley  at  Chicago,  October  19,  1898. 

The  administration  of  exact  justice  by  courts  without  fear  or 
favor,  unmoved  by  the  influence  of  the  wealthy  or  by  the  threats 
of  the  demagogue,  is  the  highest  ideal  that  a  government  of  the 
people  can  strive  for,  and  any  means  by  which  a  suitor,  however 
unpopular  or  poor,  is  deprived  of  enjoying  this  is  to  be  condemned. 
— Hon.    Wm.  H.  Taft,  at   Columbus,  Ohio. 

Let  nothing  distract  us;  let  no  discordant  voice  intrude  to* 
embarrass  us  in  the  solution  of  the  mighty  problems  wThich  involve 
such  vast  consequences  to  ourselves  and  posterity.  Let  us  remem- 
ber that  God  bestows  supreme  opportunity  upon  no  nation  which 
is  not  ready  to  respond  to  the  call  of  supreme  duty. — President 
Mclvinley  at   St.   Louis,  October   14,  1898. 

The  recall  has  an  attractive  sound.  It  appears  to  give 
the  voters  additional  control  over  their  rej)resentatives. 
But,  in  my  judgment,  the  immediate  effect  of  such  a  sys- 
tem will  be  to  make  the  voter  still  more  careless  than 
he  has  been  in  the  first  election,  because  lie  will  be  tempted 
to  rely  upon  the  power  to  correct  his  own  errors  at  his 
will.— Secretary    Nagel    at    Houghton,    Mich. 

The  price  of  wheat  in  1909,  as  compared  with  1899,  shows  an 
increase  of  69  per  cent.;  corn,  97  per  cent.,  and  oats,  63  per  cent., 
while  the  barb  wire  used  for  fences  shows  a  decrease  during  the 
same  period  of  27%  per  cent.,  and  the  binding  twine  used  by  the 
farmer  in  harvesting  his  wheat  and  oats  costs  30  per  cent,  less 
than  it  did  10  years  ago.  The  plow  he  uses  costs  the  same,  and 
the  binder,  mower,  rake  and  tedder  costs  only  about  3%  per  cent, 
more  for  a  much  better  machine.  The  farmer  receives  an  average 
price  for  butter,  eggs,  milk  and  cream  54  per  cent,  higher  than 
10  years  ago,  but  he  buys  a  first-class  cream  separator  40  per 
cent,  cheaper  than  he  did  then.  Salt,  used  in  large  quantities  on 
the  farm,  in  the  dairy  and  packing  houses,  shows  a  decrease  in 
price  of  4  per  cent.,  while  hams  sell  for  31  per  cent,  and  bacon  for 
99  per  cent,  more  than  10  years  ago.  In  spite  of  the  fact  that  the 
great  advance  in  cost  of  the  necessities  of  life  has  increased  the 
cost  of  labor  more  than  33  per  cent.,  the  great  manufacturing 
companies  have  been  able,  by  economy  in  administration,  opera- 
tion and  cost  of  distribution,  to  keep  their  prices  down  sub- 
stantially to  the  level  of  10  years  ago,  and  by  increasing  their 
sales  in  foreign  lands,  are  offsetting  in  great  measure  the  loss  of 
our  exports  of  foodstuffs,  which  are  rapidly  diminishing  to  the 
vanishing  point. — President  Brown,  of  New  York  Central  Railroad. 

We  are  making  progress  and  ought  to  make  progress  in  the 
shaping  of  governmental  action  to  secure  greater  equality  of 
opportunity,  to  destroy  the  undue  advantage  of  special  privilege 
and  of  accumulated  capital,  and  to  remove  obstructions  to  the  pur- 
suit of  human  happiness;  and  in  working  out  these  difficult  prob- 
lems we  may  possibly  have,  from  time  to  time,  to  limit  or  narrow 
the  breadth  of  constitutional  guaranties  in  respect  of  property  by 
amendment.  But  if  we  do  it,  let  us  do  it  deliberately,  understand- 
ing" what  we  are  doing,  and  with  full  consideration  aud  clear 
weighing  of  what  we  are  giving  up  of  private  right  for  the  gen- 
eral welfare.  Let  us  do  it  under  circumstances  whieh  shall  make 
fhe  operation  of  the  change  uniform  and  just,  and  not  depend  on 
fhe  feverish,  uncertain  and  unstable  determination  of  successive 
vofes  on  different  laws  by  temporary  and  chauging  majorities. 
Such  a  proposal  as  this  is  Utterly  without  merit  or  utility,  and, 
instead  of  being  progressive,  is  reactionary ;  instead  of  being  in 
the  interest  of  all  the  people  aud  of  the  stability  of  popular  gov- 
ernment, is  sowing  the  seeds  of  confusion  und  tyranny. — President 
Taft,   at   Toledo. 


THE  CIVIL  SERVICE. 


The  chief  criticisms  of  the  Civil  Service  of  the  United  States 
indulged  in  by  the  opponents  of  the  Republican  party  arc  based 
either  upon  a  total  misapprehension  or  a  willful  misstatement 
of  facts. 

The  Civil  Service  law  was  enacted  in  1883  for  the  purpose  of 
stopping-  the  flagrant  abuses  which  had  developed  under  the  old 
patronage  system  of  appointments.  Under  that  system  the  gov- 
ernment service  in  the  Departments  at  Washington  had  become 
inefficient  and  extravagant.  Public  office  was  considered  a  per- 
quisite of  the  party  in  power,  not  a  public  trust. 

It  was  to  remedy  such  evils  that  the  Civil  Service  law  was  en- 
acted, and  during  the  twenty-eight  years  of  its  enforcement  there 
has  been  developed  a  high  order  of  industry,  integrity,  and  effi- 
ciency in  the  public  service.  This  development  has,  of  course, 
not  been  free  from  difficulties.  Mistakes  have  been  made,  but 
year  by  year  the  merit  system  has  been  improved  and  extended 
until  now  the  competitive  classified  service  covers  about  227,000 
Federal  officials  and  is  recognized  as  necessary  for  good  admin- 
istration. 

The  conc\usive  answers  to  the  criticisms  are  the  following 
plain  statements  of  existing  conditions  and  the  course  of  the 
Republican  Party  during  the  fifteen  years  in  which  it  has  had 
control  of  the   administration : 

First. — Entrance  to  the  Federal  classified  service  is  not  de- 
pendent upon  personal  or  political  influence ;  hence  the  service 
is  now  composed  of  self-respecting,  independent  men  and  women 
who  appreciate  that  advancement  will  depend  upon  individual 
industry  and  ability.  They  do  not  constitute  a  body  of  per- 
manent officeholders  who  are  protected  from  removal  even 
though  inefficient  and  incapacitated,  as  charged.  The  power  of 
removal  is  absolute  in  the  head  of  every  Department.  The  only 
limitations  'upon  causes  of  removal  are  that  employees  must  be 
treated  with  justice,  that  like  penalties  must  be  imposed  for 
like  offenses,  and  that  no  person  shall  be  removed  from  a  com- 
petitive position  except  for  such  cause  as  will  promote  the  effi- 
ciency of  the  service.  The  only  limitation  involved  in  the  pro- 
cedure prescribed  by  the  Civil  Service  rule  for  removal  is  that 
the  cause  of  removal  shall  be  stated  in  writing  and  filed,  and 
that  the  employee  shall  be  furnished  with  a  statement  of  rea- 
sons and  an  opportunity  to  make  written  reply ;  no  trial  and  no 
opportunity  for  a  hearing  need  be  given  him  under  the  rules. 
The  only  limitation  is,  as  stated,  that  the  cause  of  removal  must 
be  one  which  will  promote  the  efficiency  of  the  service;  that  is, 
must  be,  for  instance,  for  misconduct  or  negligence  or  laziness, 
or  some  such  cause ;  and  that  one  employee  shall  not  be  pun- 
ished in  a  different  manner  from  another. 

The  Civil  Service  Commission' strictly  enforces  the  prohibition 
against  making  removals  for  political  reasons ;  but  its  authority 
is  limited  to  the  enforcement  of  that  prohibition. 

The  merit  system  does  not  result  in  an  undue  permanency  of 
tenure.  48.2  per  cent  of  the  employees  in  the  classified  service 
of  the  country  have  served  less  than  five  years,  and  72.5  per 
cent  have  served  less  than  ten  years.  In  the  District  of  Colum- 
bia naturally  the  service  is  more  stable,  and  in  the  Departments 
at  Washington  30.8  per  cent  have  served  less  than  five  years  and 
56.1  per  cent  less  than  ten  years. ^  The  appointments  made  as  a 
result  of  the  examinations  in  the  entire  service  are  at  the  rate 
of  about  2,000  per  month;  about  20  per  cent  of  the  entire  service 
and  about  15  per  cent  of  the  departmental  service  in  Washington 

231 


232  THE  CIVIL  SERVICE. 

changes  each  year.  The  inefficient  employee  gives  way  to  the 
efficient,  or  the  efficient  employee  finds  private  work  more  profit- 
able or  more  congenial. 

The  charge  that  the  service  is  filled  with  superannuated  clerks 
is  unfounded.  60.7  per  cent  of  the  employees  are  less  than 
40  years  old,  and  91  per  cent  less  than  60  years  old.  ?n  Wash- 
ington 53.1  per  cent  are  less  than  40,  and  87  per  cent  less  than 
60  years  old. 

Second. — It  is  not  claimed  that  a  competitive  examination  is 
an  absolutely  correct  means  of  determining  the  qualifications  of 
applicants,  but  it  is  the  best  means  3ret  devised.  The  Civil  Ser- 
vice Commission  is  constantly  changing  the  character  of  the 
examinations  to  meet  the  special  requirements  of  particular 
places.  The  experience  of  twenty-five  years  has  shown  definitely 
that  the  average  examination  can  be  passed  by  any  intelligent 
person  who  has  had  a  common  school  education,  and  does  afford 
a  remarkably  accurate  basis  for  the  determination  of  the  rela- 
tive ability  of  applicants. 

As  a  result  of  the  examination  for  scientific  and  technical 
positions,  there  have  been  built  up  various  corps  of  thoroughly 
trained  men  who  have  placed  the  scientific  work  of  this  Govern- 
ment in  the  forefront  among- the  nations  of  the  world.  This 
has  been  particularly  true,  and  the  results  obtained  have  been 
of  great  practical  value,  in  the  Departments  of  the  Interior, 
Agriculture,  and  Commerce  and  Labor. 

Third. — It  is  a  mistake  to  suppose  that  the  Civil  Servive  Com- 
mission exists  simply  for  the  purpose  of  eniorcing  the  law  and 
rules.  Its  purpose  is  to  provide  the  most  efficient  eligibles  pos- 
sible for  every  branch  of  the  service.  It  looks  to  the  good  of  the 
service,  not  to  the  mere  enforcement  of  a  rule.  It  is  the  barrier 
against  the  spoils  system,  but  it  does  not  protect  the  inefficient 
or  dishonest  employee. 

The  ideal  Civil  Service  law  should  close  the  door  to  entrance 
into  the  public  service  except  through  a  method  which  can  be 
followed  by  any  qualified  person  without  political  influence  or 
favor,  but  leaves  to  the  executive  authorities  the  power  to  re- 
move for  any  cause,  other  than  political  or  religious.  It  is 
toward  this   ideal  that  the  present  Administration  is   working. 

The  business  of  the  Government  has  grown  in  proportions  not 
appreciated  by  the  people  at  large.  The  executive  Departments 
are  made  responsible  for  the  expenditure  of  about.  $600,000,000 
annually.  Such  expenditures  can  be  wisely  and  honestly  made 
only  by  exercising  the  highest  degree  of  business  ability  and 
selecting  efficient,  capable  employees  who  will  make  good  service 
to  the  Government  their  ambition.  The  Republican  Party  has 
proved  that  under  its  administration  the  business  of  government 
is  so  conducted.  The  President,  the  party's  present  representa- 
tive, has  appointed  men  of  recognized  ability  and  judgment  to 
carry  on  executive  work.  He  has  made  no  promises  impossible 
of  fulfillment.  By  precept  and  example  he  has  inspired  public 
officers  to  a  higher  sense  of  duty.  In  this  administration  neither 
personal  nor  political  influence  has  availed  to  save  the  corrupt 
official  from  punishment.  American  citizens  should  remember 
and  take  to  heart  these  words  of  the  President : 

"The  most  successful  governments  are  those  in  which  the  average  public 
servant  possesses  that  variant  of  loyalty  which  we  call  patriotism,  together 
with  common  sen^e  and  honesty.  We  can  as  little  afford  to  tolerate  a  dis- 
honest man  in  the  public  service  as  a  coward  in  the  army.  The  murderer 
takes  a  single  life ;  the  corruptionist  in  public  life,  whether  he  be  bribe 
giver  or  bribe  taker,  strikes  at  the  heart  of  the  commonwealth.  In  every 
public  service,  as  in  every  army,  there  will  be  wrongdoers,  tnere  will  occur 
misdeeds.  This  can  not  be  avoided  ;  but  vigilant  watch  must  be  kept,  and 
as  soon  as  discovered  the  wrongdoing  must  be  stopped  and  the  wrongdoers 
punished." 

Mr.  Taft  has,  during  his  entire  political  career,  been  a  steady 
and  efficient  supporter  of  the  improvement  of  the  Civil  Serviee 
from  the  time  that  he  introduced  the  merit  system  into  the  gov- 
ernment of  the  Philippines. 


MERCHANT  MARINE. 


Since  1896  American  merchant  shipping  has  steadily  increased 
in  tonnage  and  in  efficiency  as  a  means  of  transportation;  but 
this  increase  has  been  confined  to  the  domestic  commerce  of 
the  United  States,  the  coastwise  trade,  which  under  the  tradi- 
tional policy  of  the  country,  has  been  reserved  to  American 
vessels,  the  product  of  American  labor  and  American  capital. 
The  preservation  of  this  policy  is  essential  to  the  maintenance 
of  domestic  shipyards,  and  the  maintenance  of  the  shipyards 
in  turn  is  essential  to  the  national  defense,  because  without 
them  we  should  be  dependent  upon  foreign  nations  for  the  con- 
struction of  the  vessels  of  our  navy  and  would  be  reduced  to 
the  rank  of  third-rate  nations. 

The  following  table  shows  the  total  gross  tonnage  of  the 
American  merchant  marine  for  the  years  mentioned,  divided 
according  to  the  trade  in  which  it  was  engaged : 


Year. 

Built. 

Foreign 
trade. 

Domestic  trade 

including 
Great  Lakes. 

Great  Lakes. 

Total. 

IPSO 

Ton?. 
157,409 
159,056 
294,122 
111,602 
893,790 
330,316 
342,068 
291,162 

Tons. 
1,352,810 

1,287 ,908 
946,695 
83S.1S6 
826.694 
954,513 
782,517 
863,495 

Tons. 
2,715,224 
2,977,930 
3,477,802 
3,797,774 
4,338,145 
5,502,030 
6,725,565 
6,775,295 

Tons. 
605,102 

749,948 
1,063,063 
1,241,459 
1,565,587 
2,062,147 
2,895,102 
2,943,528 

Tons. 
4.06S, 034 

I:  - ;") 

4,265,934 
4,424,497 

1890      

1895 

4,635,960 

1900 

5,164,839 

1905 

6,456,543 

1910 

7,508,082 

1911 

7.63S ,790 

The  following  table  shows  the  total  tonnage  of  American 
merchant  shipping  on  June  30,  1896,  and  June  30,  1911,  accord- 
ing to  geographical  divisions : 


Year. 

Atlantic  and 
Uulf. 

Pacific. 

Great  Lakes. 

Western 
rivers. 

Total. 

1896 

1911 _     _ 

2,667,314 
3,570,138 

437,972 
973,605 

1,324,067 
2,943,523 

274,527 
151,524 

4,703,880 
7,638,790 

Increase + 

+902,824 

+535,773 

+1,619,456 

—123,003 

+2,934,910 

The  following  table  shows  the  same  tonnage  divided   accord- 
ing to  occupation : 


1911. 


Foreign  trade. 


829,833 
863,495 


Coasting  trade. 


3,790,296 
6,720,313 


Sea  fisheries. 


83,751 
54,982 


Total. 


4,703,880 
7,638,790 


The  tariff  act  of  August  5,  1909,  extended  the  free  list  by 
admitting  free  of  duty  all  materials  of  foreign  production  neces- 
sary for  vessels  built  in  the  United  States  for  the  foreign  trade 
and  to  engage  for  six  months,  instead  of  two  months,  in  the 
coasting  trade.  Tonnage  duties  on  vessels  in  trade  between 
the  United  States  and  foreign  ports  in  North  America,  Central 
America,  Mexico  and  the  West  Indies  were  reduced  from  15 
cents  per  ton  to  ten  cents  per  tori  annually,  tonnage  duties   on 

233 


234  MERCHANT  MARINE. 

vessels  on  the  Great  Lakes  were  abolished,  and  to  offset  the 
loss  of  revenue  a  duty  of  35  per  cent  ad  valorem  was  imposed 
on  foreign-built  steam  yachts  purchased   by  Americans. 

Effectual   cooperation   between   the   Federal    Government   and 

the  State  Governments  in  the  instruction  of  youths  in  naviga- 
tion, marine  engineering-  and  seamanship  under  the  Act  of 
has  been  extended  by  the  Act  of  March  4,  1911.  The  Navy  De- 
partment now  furnishes  school  ships,  naval  officers  as  instruc- 
tors and  books  and  instruments,  and  under  the  new  act  Con- 
gress may  appropriate  up  to  $25,000  annually  for  each  such 
school  an  amount  equal  to  the  State  appropriation.  These  school 
ships  arc  authorized  in  the  States  of  California,  Massachusetts, 
Maryland,  Michigan,  New  York,  Pennsylvania,  Texas,  Virginia 
and  Washington. 


SAFETY  TO  LIFE  ON  THE  HIGH  SEAS. 

Congress  and  the  present  Administration  were  prompt  to 
recognize  the  value  of  wireless  telegraphy  as  an  agency  to  pro- 
mote the  safety  of  life  at  sea,  and  the  United  States  has  been 
first  among  maritime  nations  to  require  wireless  apparatus  and 
operators  on  steamships.  By  the  Act  of  June  24,  1910,  all  ocean 
passenger  steamships  with  50  or  more  persons  on  board  and 
on  sea  routes  of  200  miles  or  more  must  be  equipped  with  effi- 
cient wireless  apparatus  and  skilled  operators.  Under  this  law 
about  500  steamers,  including  all  of  the  transatlantic  liners, 
which  bring  annually  about  1,000,000  steerage  passengers  into 
the  United  States,  have  for  over  a  year  been  provided  with  this 
invention,  which  has  repeatedly  and  in  well-known  instances 
demonstrated  its  value  to  humanity.  The  Senate  on  April  3, 
1912,  ratified^  the  Berlin  radiotelegraphic  convention  by  which 
maritime  nations  generally  agreed  to  regulate  wireless  so  as 
to  secure  its  orderly  working  and  prevent  a  threatened  world- 
wide monopoly. 

On  our  inland  waters,  where  about  200,000  motor  boats  are 
used  by  our  people  for  purposes  of  trade  or  pleasure,  Congress 
and  the  Administration  have  also  provided  for  increased  safety 
to  life.  The  Motor  Boat  Act  of  June  9,  1910,  prescribes  sensible 
navigation  rides  as  to  lights  and  signals,  life  preservers  and 
means  of  extinguishing  burning  gasoline.  The  enforcement  of 
this  law,  with  the  cooperation  of  the  motor  boat  organizations 
and  of  the  press,  has  materially  reduced  the  number  of  accidents 
and  fatalities. 

The  Senate  on  January  18,   1912,  ratified  the  Brussels  treaty 
negotiated  by  the  Administration  relating  to  salvage  and  a 
ance  at  sea  which  requires  the  captain  of  every  ship,  regardless 
of  nationality,  to   render   assistance  to  everybody,   even  though 
an  enemy,  found  at  sea  in  danger  of  being  lost. 


It  is  always  safe  to  array  yourself  on  the  side  of  your  country; 
it  is  always  safe  to  stand  against  lawlessness  and  repudiation. — 
Mnj.   BfcKlnley   at   Canton,   Sept.  2A,  lHiHl. 

What  1  am  anxious  to  emphasize  is  that  there  is  a  wide  eeonomie 
and  business  field  in  whieh  the  interests  of  the  wealthiest  capitalist 
and  the  humblest  laborer  are  exactly  the  same. — Hon.  Win.  H. 
Tali,   lit    Cooper    Union,  New    York   City. 

The  Wilson  bill  was  enacted  into  law.  The  proof  of  the  pudding 
is  in  the  eating:.  There  were  three  million  men  working  in  the 
productive  industries  and  on  their  products  that  were  thrown  out 
of  employment.  They,  learning;  through  their  stomachs  as  to  the 
etVccts  of  it,  helped  pull  down  the  rocks  and  the  mountains  upon 
your  hends.  The  roi  ks  and  mountains  will  fall  upon  you  nmiiii,  I 
hope,   in    i\\V£,   and    i    know    in    1014   and    1916. — Ex-Speaker   Cannon. 

Every  one  who  knows  anything  about  the  management  of  rail- 
roads knows  that  there  has  been  a  revolution  in  respect  to  their 
Obedience  to  the  law.  No  longer  are  special  privileges  granted  to 
the  few — iso  longer  arc  mitcI  rebates  extended  to  build  up  the 
monopoly  of  the  trusts.  The  railroads  are  dperatlng  within  the 
law,  and  the  railroad  directors  and  oflicers  and  stockholders  ought 
to  rise  up  and  call  blessed  the  men  who  are  responsible  for  the 
passage   of   the   rate   bill. — Hon.    Wm.   II.   Tuft,   at    Kansas    City,    Wo. 


MERCHANT   MARINE. 


235 


Number  and  Xct  and  Gross  Tonnage  of  Steam  and  Sailing  Ves- 
sels of  Orer  iOO  Tons,  of  the  Several  Countries,  of  the  World, 
as  Regarded  in  Lloyd's  Register  for  1911-12. 


Flag. 

Steam. 

Sail. 

Total 
tonnage. 

British: 

United    Kingdom 

Number . 

8,487 
1,414 

Gross  tons. 

17,292,715 

1,350,934 

Number. 

847 
694 

•Net  tons. 
579,982 
195,193 

Tonnage. 

17,872,697 
1.546,127 

Total-—      _  _     _  - 

9,901 

18,643,649  ' 

1,541 

775.175 

19,418,824 

American  (United  States): 
._ 

1,115 

579 
76 

1,715,427 
2,201,866 

45,087 

1,647 
35 
14 

1,093,257 
99,757 
2,884 

2,808,684 

2,301,623 

Philippine    Island? 

47,971 

Total 

1,770 

3,962,380 

1,696 

1,195,898 

5,158,278 

Argentinian    

A ust ro -Hungarian    

Belgian 

212 
377 
154 

98 

66 

57 

551 

560 

890 

1,856 

322 

■  > 

479 

861 

42 

1,373 

16 

98 

22 

649 

5 

13 

526 

975 

162 

:;s 

8 

46 

154,851 

844,981 

284,662 

263.211 

112,589 

80,550 

59,988 

692,718 

lf02»^96 

1,542,568 

4,092,015 

560,475 

3,387 

1,026,823 

1,200,975 

34,733 

1,537,873 

20,130 

77,945 

31,688 

710,951 

3,673 

13,499 

758. 097 

808 

141,778 

49,918 

4,232 

26,739 

67 

5 

6 

67 

42 

M 22, 228 

*   1,507 

3,723 

17,297 

177,079 
846,488 

288,385 
980  50S 

37  427             150  Oift 

86,550 

_  ..    _      __    _  . 
Cuban 

9 
303 
100 
588 
343 
98 

2,563 
60,036 

28,691 
434,294 
374,865 

25,395 

62,551 

752,754 

Dutch - 

1.05S, 287 

French         __  - 

1,976,862 

4,466,880 

585,870 

3,387 

598 

5 

16 

697 

40 

101 

1 

542 

313,686 

2,245 
3,878 

616,458 

19,909 

27,507 

285 

184,307 

1,340,508 

1, 203, 220 

38,611 

2,154,331 

40,039 

Portuguese  

105,  152 
31,973 

Russian* 

895,258 
3,673 

13,499 

85 

465 

179 

14 

5 

21 

17,454 
122,584 

60,914 

9,984 

679 

6,594 

775,551 

931,482 

Turkish _       -    _ 

202,692 

59,902 

4,911 

Other  countries:  Bulgaria, 
Colombia,    Costa    Rica, 
Ecuador,     Egypt,    Hon- 
duras,   Liberia,    Nicara- 
gua,    Oman.     Panama, 
Persia,      Salvador,      8a- 
mos,   Zanzibar,   etc 

33,333 

Total 

22,473 

38,781,572 

7,614 

4,365,582 

43,147,154 

Class  appeals  are  dishonest.  *  *  *  they  calculate  to  sep- 
arate those  who  should  be  united,  for  our  economic  interests  are 
common  and  indivisible. — Maj.  McKinley  to  Commercial  Traveling 
Men's   Republican  Club,  September  20,  189(5. 

The  only  substantial  steps  which  have  been  really  taken  to 
stop  the  abuses  and  oppression  attempted  by  the  irresponsible 
holders  of  gnreat  wealth  and  corporate  power  have  been  by  the 
Republican  Party. — Hon.  Wm.  H.  Taft,  at  Greensboro,  North  Car- 
olina. 


The  f  rant  era  of  the  Constitution  did  not  believe  that  any  man 
or  any  body  of  men  could  safely  be  intrusted  with  unlimited  power. 
They  thought,  and  all  experience  justified  them  in  thinking  that 
human  nature  could  not  support  the  temptation  which  unlimited 
power  always  brings.  They  had  deeply  ingrained  the  belief  of 
the  English-speaking  people  that  the  power  of  the  king  should  be 
strictly  limited.  They  felt  that  this  great  principle  applied  with 
equal  force  to  ten  thousand  or  ten  million  kings — in  other  words, 
to  a  popular  majority  of  numbers.  They  established  a  representa- 
tive democracy  and  a  thoroughly  popular  government,  but  they 
thought  that  the  "right  divine  of  kings  to  govern  wrong"  was  as 
false  a  maxim  when  applied  to  many  men  called  voters  as  when 
applied  to  one  who  happened  to  wear  a  crown.— Senator  Lodge,  at 
Princeton. 


236  MERCHANT   MARTNE. 


FOREIGN    SUBSIDIES,    BOUNTIES   AND    OCEAN    MAIL   PAY. 

During  the  fiscal  year  ended  June  30,  1911.  the  United  States 
paid  to  American  vessels  for  the  transportation  of  ocean  mails 
$1,321,418.81  and  to  foreign  vessels  $1,140,455.46,  a  total  of 
$2,461,874.27.  The  expenditures  of  foreign  nations  for  mail 
subsidies,  admiralty  subventions  and  navigation  bounties  to  their 
respective  merchant  marines  aggregate  annually  at  this  time 
about  $45,000,000  divided  substantially  as  follows,  according  to 
returns  for   recent  years : 


Tables  of  Foreign  Subsidies,  Mail  Pay,  Bounties,  Etc. 

Great  Britain  and  colonies : 

Subsidies   and  mail  pay    (British  Postmaster-Gen- 
eral,   1908)     $3,320,4  54 

Cunard   Admiralty   subvention    (1909) 729.000 

Royal  Naval  Reserves    ( 1909-10) 1,783,620 

Canadian  subsidies  and  mail  pay    (1910) „.  1,581,800 

Canadian  fisheries  bounties    ( 1909  j . 160,000 

AustralianVnd  New  Zealand   subsidies  and  mails 

(1909)      1,263,600 

Cape   Colony   subsidy    (1909) 656,910 

Jamaica    subsidy    (1909)    194,000 

Total $9,689,3S4 

France : 

Mail  subsidies   (1908)    $5,217,037 

Navigation  and  shipowners'  bounties   (1908) 6.079.500 

Shipbuilding  bounties    (1908)    2,007.200 

Fisheries   bounties    120.000 

Total $13,423,737 

Japan : 

Mail  subsidies    (new  law,   1910,) $4,379,000 

Shipbuilding  bounties  (1908)    997.700 

Fisheries   bounties    37.000 

Total   $5,413,700 

Italy : 

Mail  subsidies    ( 1908)    $2,328,917 

Navigation  bounties    (1909)    677.734 

Shipbuilding  bounties   (1909)    866.266 

Total   $3,872,917 

Spain : 

Mail  subsidies  (new  law,  1910) $1,858,186 

Navigation   bounties    (new  law,    1910) 1,291.826 

Shipbuilding  bounties   Not  ascertained. 

Total   $3,150,012 

Austria-Hungary : 

Austrian-Lloyd   subsidy    (1908)    $1,450,400 

Suez  Canal  refunds   (1908) 375.000 

Navigation   and  shipbuilding  bounties    (1908) 8S0.000 

Hungarian   mail   contracts    (1908) 279.130 

Total   $2,984,530 

Germany : 

Mail  subsidies    (1908)    $1,706,460 

Mail    pay    (1907)     594.569 

Total    $2,301,029 


MERCHANT   MARINE.  237 

Russia : 

Subsidies   (1908)    $1,543,578 

Suez  Canal  refunds   ( 1908)    334,750 

Total    $1,878  328 

Norway : 

Mail  subsidies    (1908-9)    $561,788 

Trade  subsidies   (1908-9)    513.555 

Tariff  refunds    (1908-9)    26,800 

Total    $1,102,143 

Netherlands : 

Mail  subsidies   (1908)    $841,827 

Naval  reserves    ( 1908)    38,184 

Total   $880,011 

Sweden  : 

South  American  and  Asiatic  subsidies    (1909) $140,000 

Mail  pay    (1908)    137,752 

State  loans    Not  ascertained. 

Total    $277,752 

Denmark : 

Trade  subsidies  and  harbor  dues  exemption  (1902)  $145,000 


Belgium : 

Trade  bounties  (1908)    $23,160 

Pilotage  refunds  (1908)    32,810 

Total    $55,970 

Portugal : 

Mail   subsidy    (1908-9)     $50,000 

Grand    total    $45,224,513 

Outside  of  Europe  and  Japan  subsidies  and  mail  payments 
hare  been  reported  for  1908  as  follows:  Chile,  $253,195;  Mexico, 
$75,000;  Egypt,  $54,512;  Brazil,  $1,300,000;  in  all,  $1,682,707, 
making  with  the  above  a  total  of  $46,907,220. 


I  believe  that  a  navy  is  the  greatest  insurer  of  peace  that  we 
could  possibly  have — a  navy  commensurate  with  our  resources, 
and  commensurate  with  our  coast  line,  and  commensurate  with 
the  number  of  dependencies  we  have,  and  commensurate  with  our 
population,  and  commensurate  with  our  influence  as  a  worlu  power. 
— Hon.  Wm.  H.  Taft,  at  Cleveland,  Ohio. 

President  Taft's  speech  at  Toledo,  combating:  the  dangerous 
doctrine  of  reeall  of  judges  and  recall  of  judicial  decisions  by 
popular  vote  was  a  masterly  defense  of  popular  government 
against  insidious  and  disintegrating  devices  for  supplanting  the 
representative  principle  which  has  been  so  many  times  tested  and 
vindicated,  while  such  devices  have  uniformly  been  discarded  or 
have  brought  ruin.  We  do  not  intend  to  mar  the  effect  or  muti- 
late the  substance  of  this  impressive  address  by  summary  or 
further  citation.  It  should  be  read  and  pondered  by  every  Ameri- 
can voter  capable  of  understanding  it,  and  its  influence  should 
permeate  the  whole  body  of  the  electorate  of  the  States  and  the 
Nation.  In  thus  boldly  aud  candidly  inviting  the  confidence  of  the 
people  President  Taft  showed  a  much  higher  confidence  in  the 
people  and  in  their  capacity  for  self-government  than  those  who 
appeal  to  passion  and  prejudice  and  flatter  with  encomiums  of 
superior  wisdom  to  which  few  ean  pretend.  He  showed  that  he 
relied  upon  the  ability  of  the  people  to  understand  the  need  of 
the  checks  and  balances  of  the  Government,  and  the  essential 
necessity  of  orderly  procedure  through  a  carefully  devised  and 
assiduously  preserved  representative  system.  We  believe  that  this 
faith  in  genuine  popular  government  and  this  confidence  in  the 
capacity  of  the  people  to  maintain  its  .safeguards  will  be  justified. 
p-New  York  "Journal   of  Commerce,"  Democrat. 


THE  AFRO-AMERICAN  CITIZEN. 


President  Taft  is  President  of  all  the  people.  His  care  and 
interest  on  behalf  of  the  citizens  of  the  United  States  extends 
alike  to  all,  irrespective  of  country  of  birth,  creed,  color  or 
race.  His  tender  solicitude  for  the  brown  man  of  the  Philip- 
pines was  a  marked  characteristic  of  his  work  in  those  islands, 
and  gave  to  him  the  love  and  earnest  supoort  of  that  people, 
and  in  his  work  as  President  he  has  recognized  no  line  of 
separation  among  the  people  forming  the  citizenship  of  the 
United  States. 

The  statement  has  been  made  that  there  are  fewer  Afro- 
Americans  in  the  service  of  the  Government  under  President 
Taft  than  under  previous  previous  Republican  administrations. 

The  facts  refute  the  statement.  On  July  1,  1912,  there  were 
more  Afro-Americans  in  the  service  of  the  United  States  Gov- 
ernment under  the  Taft  Administration  than  ever  before  in 
the  history  of  the  country. 

The  following  table  shows  the  number  Of  Afro-Americans  in 
the  service  of  the  Federal  Government,  July   1,   1.912: 

Afro-American  officers,  clerks,  and  other  employees  in  the  service 
of  the  United  States  Government,  July  1,  1912. 


The  White  House 

Departmental  Service,  Washington,  D.  0.: 

State    

Treasury    

War    • 

Navy    

Post  Office 

Interior  

Justice  

Agriculture   

Commerce  and  Labor 

Washington  Navy  Yard 

Government  Printing  Office 

Interstate  Commerce  Commission 

United  States  Senate,  including  Office  Building 

Library  of   Congress 

Washington,  D.  C,  City  Post  Office 

District  of  Columbia  Government,   including  unskilled  la 

borers 

Miscellaneous  

Department  Ser-vice  at  large: 

State  (Diplomatic  and  Consular) 

Treasury  

Post  Office  

Interior  

Agriculture   

Commerce   and  Labor 

United  States  Army,  officers 

United  States  Army,  enlisted  men 

United  States  Navy,  enlisted  men 

United  States  Navy,  Yards  and  Stations 

Miscellaneous,    including   unclassified 

Total— 

Recapitulation  by  localities: 

Foreign  Stations  (Diplomatic  and  Consular) 

Washington,  D.  C . 

New  York  City 

Chicago,   Illinois  : 

BOstOn,   Massachusetts  

Cincinnati,  Ohio  

Richmond,  Virginia  

.Jackson,  Mississippi  

Mobile,   Alabama   1 

Indianapolis,    Indiana   

St.   Louis,  Missouri  

Louisville,  Kentucky  

At  miscellaneous  points 

Total 


Number.     Salaries. 


27 


$19,302 


26 

19,360 

926 

588,801 

170 

130,380 

52,610 

1-7 

IIS. 173 

593 

43 

26,640 

164 

94,800 

41 

115 

46 

171 

174,600 

2,413 

1,479,000 

194 

104,114 

n 

»,*w 

610,373 

3,399 

2,607*134 

31 

• 

102 

51 

64 

42,612 

11 

1,116 

1,11 

2.146 

1.-  10.07(1 

4,0i 

91 

56 

' 

167. 020 

19,721) 

THE  AFRO-AMERICAN  CITIZEN.  239 

PARTIAL  LIST   OF   COLORED   FEDERAL   OFFICIALS. 

Appointed  by  President  Taft. 

Salary. 

William  H.  Lewis,  Assistant  Attorney  General $5,000 

Whitfield  McKinlay,  Collector  Customs,  Washington 3,700 

Charles  A.  Cottrill,  Internal  Revenue  Collector,  Honolulu  3,000 

William  D.  Crum,  Minister  to  Liberia   5,000 

Henry  L.  Johnson,  Recorder  of  Deeds    4,000 

T.  V."  McAllister,  Receiver  Land  Office,  Jackson.  Miss.    ..  2,100 
W.  D.  Johnson,  Special  Agent,  Agricultural  Department.  1,500 
Nathan   Alexander,    Special   Agent,    Agricultural    Depart- 
ment,  Montgomery,   Ala 2,500 

James  N.  Alexander,  Deputy  Collector,  Los  Angeles,  Cal.  1,600 

J.  C.  Napier,  Register  of  the  Treasury    4,000 

P.  B.  S.  Pinchback,  Inspector   2,000 

W.  T.  Vernon,  Supervisor,  Indian  and  Negro  Schools   . . .  1,600 

Wm.  Bundy,  Secretary  of  Legation  at  Monrovia    2,000 

R.  H.  Terrell,  Municipal  Judge 2,500 

S.  Laing  Williams,  Assistant  District  Attorney  at  Chicago  2,000 

Wm.  C.  Mathews,  Assistant  District  Attorney  at  Boston  .  1,600 

Robert  Smalls,  Internal  Revenue  Collector,  Beaufort,  S.  C.  1,500 

Mrs.  Booze,  Postmistress,  Mound  Bayou,  Miss 1,800 

Wm.  L.  Jones,  Postmaster,  Boley,  Okla 1,300 

Retained  by  President  Taft. 

Henry  W.  Furniss,  Minister  to  Haiti    $10,000 

Charles  W.   Anderson,   Internal   Revenue   Collector,   New 

York     4,500 

Joseph  R.  Lee,  Internal  Revenue  Collector,  Jacksonville, 

Fla 4,500 

Ralph  W.  Tyler,  Auditor  for  the  Navy   4.000 

Cyrus  Field  Adams,  Assistant  Register  of  the  Treasury..  2,500 

James  W.  Johnson,  Consul  at  Corinto   3,000 

Christopher  Payne,  Consul  at  St.  Thomas   3.000 

Wm.  H.  Hunt,  Consul  at  St.  Etienne   2,500 

James  G.  Carter,  Consul  at  Madagascar   2.500 

George  H.  Jackson,  Consul  at  Cognac   2,500 

Herbert  R.  Wright,  Consul  at  Puerto  Cabello 2,000 

Wm.  J.  Yerby,  Consul  at  Sierra  Leone   2.000 

L.  W.  Livingston,  Consul  at  Cape  Hatien    2,000 

Edmund  A.  Burrell.  Vice  Consul  at  St.  Etienne  1,000 

J.   A.    Cobb,    Special   Assistant   District  Attorney.   Wash- 
ington      -, 2,000 

Isaiah  J.  McCottrie,  Collector  Customs,  Georgetown,  S.  C.  600 

John  M.  Holzendorf,  Collector  Customs,  St.  Marys,  Ga.. .  520 

George  A.  Reed,  Postmaster,  Beauford,  S.  C.   .  . .  . 1,800 

J.  B.  Washington,  Postmaster,  Tuskegee  Institute,  Ala...  1,800 

Total  salaries  per  annum   $106,660 


LIST  OF  AFRO-AMERICANS  IN  THE  DIPLOMATIC  AND  CON- 
SULAR SERVICE  OF  THE  UNITED  STATES,  JULY  1,  1012. 

Diplomatic 

Name.  Position    and   Address.  Salary. 

Henry    W.   Furniss.    Envoy    Extraordinary    and   Minister 

Plenipotentiary  at  Port-au-Prince,  Haiti $10,000 

William  D.  Crum,  Minister  Resident  and  Consul  General 

at   Monrovia.   Liberia 5.000 

Richard    C.    Bundy,    Secretary    of   Legation    at   Monrovia, 

Liberia 2,000 

Consular. 

William  J.  Yerby,  Consul  at  Sierre  Leone,  West  Africa..  $2,000 

James  C.  Carter.  Consul  at  Tamatavo.  Madagascar 2.500 

Christopher  TL  Pay  no.  Consul  at  St.  Thomas,  West   !:ulies  3,000 

(h'orge  li.  Jackson,  Consul   at  Cognac,    France    2,500 


240  THE  AFRO-AMERICAN  CITIZEN7. 

Lemuel  W.  Livingston,  Consul  at'  Cape  Haitien,  Haiti   . .  $2,000 

William  H.  Hunt,  Consul  at  St.  Etienne,  France   2,500 

Herbert  E.  Wright,  Consul  at  Puerto  Cabello,  Venezuela  2,000 

James  W.  Johnson,  Consul  at  Corinto,  Nicaragua   3,000 

Edmond  A.   Burrill,   Vice  and  Deputy   Consul   and  Clerk 

at   St.   Etienne,   France 1.000 

$37,500 

THE  UNITED  STATES  ARMY. 

Ldst    of    Afro-American    Officers    with    Rank    and    Yearly    Pay. 
Number  of  Enlisted  Men  icith  Aggregate  Annual  Pay. 
Officers.  Yearly   Pay. 

Major  John  E.  Lynch   (retired)    $2,700 

Captain  Charles  Young    3,360 

First  Lieutenant  Beujamin  O.  Davis    .  .' 2,400 

First  Lieutenant  John  E.  Green   2,400 

Lieutenant  Colonel  Allen  Allensworth    (retired)    3,375 

Major  WTm.  T.  Anderson    (retired)    2,700 

Captain  George  W.  Prioleau    3.120 

First  Lieutenant  W.  W.  E.  Gladden   2.200 

First  Lieutenant  Oscar  J.  W.  Scott   2,200 

First  Lieutenant  Louis  A.  Carter   2,000 

M.  M.  McCary,  Army  Paymaster's  clerk   2,000 

Total  yearly  pay  of  officers   $28,455 

Enlisted  men  in  the  Ninth  and  Tenth  Cavalry,  and 
Twenty-fourth  and  Twenty-fifth  Infantry, "  4,416, 
and  their  yearly  pay  in  the  aggregate  amounts  to  1,133,766 

Total  for  officers  and  men   $1,162,221 


THE    DEPARTMENT    OF    AGRICULTURE    AIDS    COLORED    FARMERS. 

The  Department  of  Agriculture  has  in  the  city  of  Washington 
164  colored  employes  with  an  aggregate  compensation  of 
$89,816.95.  Outside  of  Washington  the  department  has  102 
colored  employes,  with  a  total  compensation  of  $53,217.50. 
This  is  a  total  of  266  colored  employes  in  the  Department  of 
Agriculture,  with  a  total  compensation  of  $143,034.45. 

In  connection  with  the  Farmers'  Co-operative  Demonstra- 
tion Work  in  the  South  the  Bureau  of  Plant  Industry  of  the 
Department  of  Agriculture  employs  a  number  of  colored 
agents,  who  are  doing  very  successful  and  efficient  work.  There 
are  now  fifteen  regular  agents  employed  in  connection  with 
this  work.  These  agents  are  carrying  on  regular  farm  demon- 
strations with  farmers  in  the  communities  where  they  are 
employed,  conducting  demonstrations  in  the  raising  of  cotton, 
corn  and  other  crops,  and  generally  fostering  and  encouraging 
better  farming  and  better  living  on  the  part  of  the  Afro- 
American  farmers. 

Closely  identified  with  the  work  of  the  department  is  that 
conducted  through  the  aid  of  funds  secured  from  the  General 
Education  Board.  Twenty-one  agents  are  employed  in  this 
work.  This  work  is  practically  an  extension  of  the  govern- 
ment work  in  localities  where  the  governmnet  agents  are  not 
employed.  All  the  agents  paid  from  the  General  Education 
Board  fund  are  appointed  as  collaborators  of  the  Department 
of  Agriculture. 

OTHER    DEPARTMENTS. 

The  Treasury  Department  has  a  larger  number  of  Afro- 
American  presidential  appointees  than  any  other  department 
of  the  United  States  Government.  Among  those  on  the 
list  are: 

J.  C.  Napier,  Register  of  the  Treasury;  R.  W.  Tyler,  Auditor 
for  the  Navy  Department;  Charles  A.  Cottrill,  Collector  of 
Internal  Revenue,  Hawaii;  Charles  W.  Anderson,  Collector  of 
Internal  Revenue,  New  York  City;  "Joseph  E.   Lee,   Collector 


THE  AFRO-AMERICAN  CITIZEN.  241 

of  Internal  Revenue,  Jacksonville,  Fla. ;  Whitefield  McKinlay, 
Collector  of  Customs  at  Washington;  General  Robert  Smalls, 
Collector  of  Customs,  Beaufort,  S.  C,  and  others. 

To  President  Taft  must  be  given  the  credit  for  having 
appointed  an  Afro-American  to  the  highest  appointive  office 
ever  held  by  one  of  the  race  when  he  named  William  H.  Lewis, 
of  Massachusetts,  as  Assistant  Attorney  General.  Mr.  Lewis' 
commission  is  dated  March  27,  1911. 

THE     FIGHT     AGAINST     PEONAGE     BY     THE     TAFT     ADMINISTRATION. 

The  Taft  Administration  has  done  much  toward  stamping 
out  peonage  in  the  South. 

Peonage,  the  new  system  of  slavery  in  the  South,  may  be 
defined  as  a  method  of  causing  compulsory  service  to  be 
rendered  by  one  man  to  another,  on  the  pretext  of  having  him 
work  out  the  amount  of  a  debt,  real  or  claimed;  also  the 
carrying  or  enticing  of  any  person  from  one  place  to  another 
in  order  that  he  may  be  held  in  involuntary  servitude. 

The  Taft  Administration,  through  the  Department  of  Justice, 
has  done  much  toward  obliterating  this  practice  so  common 
in  the  South.  Attorney  General  Wickersham  in  his  annual 
report  recommends  that  the  United  States  statutes  upon  the 
subject  of  peonage  and  slavery  be  amended  so  as  to  render 
them  more  effective.  The  following  is  from  the  annual  report 
of  the  Attorney  General: 

"The  vigorous  enforcement  of  the  statutes  against  peonage 
conducted  by  the  department  in  the  last  few  years,  it  is 
believed,  has  done  much  toward  stamping  out  that  form  of 
involuntary  servitude  in  many  districts,  but  in  some  of  the 
Southern  States  this  practice  appears  to  be  still  quite  exten- 
sively carried  on.  Prosecution  under  the  peonage  statutes 
have  been  instituted  in  nearly  all  the  Southern  States,  and 
in  a  few  States  not  in  the  South.  Convictions,  owing  to  local 
prejudice,  are  difficult  to  secure,  but  they  have  been  obtained 
in  a  number  of  States.  Even  where  convictions  have  not  been 
secured,  it  is  thought  that  the  acts  of  cruelty  and  oppression, 
which  frequently  mark  these  peonage  cases,  disclosed  in  the 
course  of  their  trial,  have  had  the  effect  of  turning  the  senti- 
ment of  the  people  against  the  methods  which  give  rise  to 
prosecutions   for   involuntary  servitude. 

"'The  chief  support  of  peonage  lies  in  the  peculiar  system  of 
laws  prevailing  in  some  of  the  Southern  States  intended  to 
compel  personal  service  on  the  part  of  laborers.  The  usual 
practice,  under  these  State  laws,  seems  to  be  for  the  person 
who  desires  the  services  of  a  laborer  to  swear  out  a  warrant 
against  him  for  some  alleged  offense,  have  him  taken  before 
a  justice  of  the  peace,  and  bound  over  to  the  next  term  of 
court,  the  complainant  becoming  surety  or  procuring  bail  for 
him,  and  then  taking  him  to  his  farm  or  plantation  and  com- 
pelling him  to  labor  through  the  fear  or  threat  of  imprison- 
ment. Another  expedient,  expressly  authorized  by  the  laws 
of  some  States  is  for  the  interested  party  to  confess  judgment 
on  behalf  of  a  laborer  who  has  been  accused  of  some  offense, 
pay  the  same,  and  then  have  the  laborer  bound  under  a  con- 
tract made  under  the  supervision  of  the  court  to  work  out 
the  indebtedness  so  contracted.  The  constitutionality  of  such 
laws  is  now  in  process  of  being  tested  by  the  department. 

"At  its  last  term  the  Supreme  Court  of  the  United  States, 
in  Bailey  vs.  the  State  of  Alabama  (219  U.  S.,  219),  rendered 
a  decision  which  goes  far  toward  holding  unconstitutional  a 
statute  designed,  under  the  guise  of  punishing  persons  who 
obtained  money  under  false  pretenses,  to  enforce  a  condition 
of  involuntary  servitude,  by  declaring  a  provision  thereof 
which  made  a  breach  of  contract  prima  facie  evidence  of  an 
intent  to  defraud,  to  be  in  violation  of  the  thirteenth  amend- 
ment. 

"It  is  suggested  that  the  statutes  of  the  United  States  upon 
the  subject  of  peonage  and  slavery  should  be  amended  so  as 
to  render  them  more  effective  for  the  protection  of  persons 
against  slavery  and  involuntary  servitude,  except  as  a  punish- 
ment for  crime." 


242  THE  AFRO-AMERICAN  CITIZEN. 

THE    COMMISSION    TO    LIBERIA. 

A  Special  Commission  from  the  Republic  of  Liberia  visited 
the  United  States  in  19  08  and  representeu  to  our  Government 
that  Liberia  was  in  need  of  assistance  in  maintaining  her  inde- 
pendence and  integrity  as  a  Nation.  They  asked  that  the 
United  States  guarantee  their  territorial  and  political  integ- 
rity, which  course,  as  Secretary  Root  informed  them,  was 
impracticable  on  our  part.  The  United  States  was  then  asked 
to  loan  to  Liberia  suitable  and  competent  officers  to  aid  them 
in  the  conduct  of  the  administration  of  their  country,  and 
to  confer  with  the  representatives  of  other  Governments  hatf ing 
interests  on  the  West  Coast  of  Africa,  and  whose  territory 
bordered  on  Liberia.  Congress  authorized  the  appointment 
of  a  commission  and  appropriated  $20,000  for  the  payment 
of  the  expenses  thereof. 

On  April  2  4,  1909,  the  commission  was  appointed  by  Presi- 
dent Taft  to  visit  Liberia  and  investigate  conditions  in  the 
little  Republic,  and  sailed  at  once  for  Monrovia.  As  one  of  the 
results  of  the  visit  of  the  Liberian  Commission,  Reed  Paige 
Clark  was  appointed  General  Receiver  of  Liberian  Customs 
by  the  State  Department,  at  the  suggestion  of  President  Taft. 
Mr.  Clark  arranged  the  details  of  a  loan  agreement  which 
will  supply  Liberia  with  sufficient  funds  to  place  her  finances 
on  a  sound  basis.  Captain  Charles  Young,  Ninth  Cavalry,  was 
ordered  to  Monrovia,  Liberia,  to  report  to  the  American  Min- 
ister at  that  capital  for  such  service,  under  his  supervision, 
as  might  be  assigned  by  the  War  Department.  Captain  Young 
is  the  only  Afro-American  graduate  of  West  Point  in  the 
United  States  Army.  Several  non-commissioned  officers  of 
the  United  States  Army  will  also  go  to  Liberia  for  the  purpose 
of  reorganizing  the  Constabulary. 

DISFRANCHISEMENT    OF    COLORED    CITIZENS. 

The  Republican  Party  wrote  into  the  organic  law  the 
declaration  which  proclaims  the  civil  and  political  rights  of 
the  Afro-American  people.  The  Democratic  Party  has  enacted 
in  the  Southern  States  which  it  controls,  laws  which,  by  means 
of  various  devices,  are  readily  aimed  at  the  disfranchisement 
of  the  race  for  reasons  of  color  alone. 

Three  attempts  have  been  made  by  the  Democrats  of  Mary- 
land to  disfranchise  the  colored  voters  of  that  State.  The 
Maryland  Republicans  have  stood  solidly  against  every  attempt 
at  disfranchisement,  and  in  two  of  these  fights  which  have 
occurred  since  Mr.  Taft's  election  as  President  they  have  had 
his  active  support. 

In  December,  1908,  just  after  Mr.  Taft  had  been  elected 
and  before  he  had  been  inaugurated,  in  answer  to  a  letter 
of  the  Hon.  Wm.  F.  Stone,  Collector  of  the  Port  of  Baltimore, 
for  the  purpose  of  obtaining  his  views,  the  President  made 
the  following  reply: 

"My  Dear  Mr.  Stone:  I  have  your  letter  of  December  9th, 
but  have  not  been  able  to  answer  it  until  now.  I  don't  think 
any  one  can  read  my  North  Carolina  speech  with  any  care  and 
on  that  base  the  belief  that  I  would  favor  such  a  bill  as  that 
proposed  in  Maryland.  The  provision  that  the  first  class  of 
eligible  voters  shall  be  those  persons  who  on  the  1st  day  of 
January  in  the  year  1869,  or  prior  thereto,  were  entitled  to 
vote  under  the  laws  of  Maryland  or  any  other  State  of  the 
United  States  wherein  they  then  resided,  and  that  the  male 
descendants  of  such  persons,  as  a  second  class,  shall  be  entitled 
to  vote,  was  intended  to  exempt  the  persons  thus  made  eligible 
from  the  educaftional  or  property  qualifications  which  follow 
in  the  descriptions  of  the  fifth  and  sixth  classes  of  persons 
who  shall  be  entitled  to  vote. 

"The  same  thing  may  be  said  of  the  third  and  fourth  classes, 
which  includes  foreign-born  citizens  of  the  United  States 
naturalized  between  January  1,  1869,  and  the  date  of  the 
adoption  of  the  proposed  section  and  the  male  descendants 
of  such  mentioned  persons.     This  is  in  order  to  exempt  such 


THE  AFRO  AMKRK'W   C'TIZRN'.  2'43 

immigrants  and  their   descendants  from   educational   or   prop- 
erty  qualHications. 

"Now  we  know  the  first  four  classes  include  no  Negroes  at 
all.  In  other  words,  it  is  intended  to  free  the  whites  from 
educational  or  property  qualifications,  but  to  subject  all 
Negroes   to   them. 

"The  whole  law  ought  to  be  condemned.  It  is  not  drawn 
in  the  spirit  of  justice  and  equality,  having  regard  for  the 
fourteenth  and  fifteenth  amendments,  and  I  sincerely  hope 
that  no  Republican  who  desires  equality  of  treatment  to  the 
black  and  white  races  will  vote  for  it. 

"Sincerely  yours, 

"WILLIAM  II.  TAPT." 


THE    EI.ECTJOIV    LAWS    OF    THE     SOUTH. 

The  following  are  sections  of  some  of  the  election  laws  of 
the  South  (certified  to  by  the  Secretaries  of  State,  in  each 
case),  many  of  them  enacted  for  the  avowed  purpose  of 
depriving  Afro-American  citizens  of  the  right  to  vote.  It  will 
be  seen  that  the  Louisiana  and  North  Carolina  laws  are 
especially  framed  for  the  purpose  of  making  the  educational 
test  apply  only  to  the  Afro-Americans,  and  that  ail  persons 
who  were  voters  prior  to  January  1,  1867,  and  their  lineal 
descendants  are  exempt  from  the  provisions  of  the  law,  which 
disqualifies  persons  because  of  illiteracy. 

No  body  of  Republican  legislators  has  ever  enacted  a  law 
intended  to  disfranchise  any  citizen  on  account  of  his  race  or 
color. 

Democratic  Governor  Donaghey,  of  Arkansas,  celebrated 
Independence  Day  this  year  by  issuing  a  proclamation  advo- 
cating the  passage  of  a  "grandfather  clause"  amendment  to 
the  Constitution  of  that  State.  In  this  remarkable  statement 
Governor  Donaghey  acknowledges  that  100,000  colored  men 
in  Arkansas  have  the  legal  right  to  vote,  but  in  many  instances 
have  been  prevented  from  exercising  their  rights  by  the  process 
of  intimidation. 

GEORGIA. 

"Par.  4.  Every  male  citizen  of  this  State  shall  be  entitled 
to  register  as  an  elector  and  to  vote  at  all  elections  of  said 
State  who  is  not  disqualified  under  the  provisions  of  Section 
2  of  Article  II  of  this  Constitution,  and  who  possess  the  quali- 
fications prescribed  in  Paragraphs  2  and  3  of  this  section,  or 
who  will  possess  them  at  the  date  of  the  election  occurring 
next  after  his  registration,  and  who  in  addition  thereto  comes 
within  either  of  the  classes  provided  for  in  the  five  following 
subdivisions  of  this  paragraph: 

"1.  All  persons  who  have  honorably  served  in  the  land 
or  naval  forces  of  the  United  States  in  the  Revolutionary  War, 
or  the  War  of  1812,  or  in  the  War  with  Mexico,  or  in  any 
war  with  the  Indians  or  in  the  War  Between  the  States,  or 
in  the  War  with  Spain,  or  who  honorably  served  in  the  land 
or  naval  forces  of  the  Confederate  States,  of  the  State  of 
Georgia  in  the  war  between  the  States;  or, 

"2.  All  persons  lawfully  descended  from  those  embraced 
in  the  sub-division  next  above;   or, 

"3.  All  persons  who  are  of  good  character,  and  understand 
the  duties  and  obligations  of  citizenship  under  a  republican 
form  of  government;   or, 

"4.  All  persons  who  can  correctly  read  in  the  English 
language  any  paragraph  of  the  Constitution  of  the  United 
States  or  of  this  State,  and  correctly  write  the  same  in  the 
English  language  when  read  to  him  by  any  one  of  the  reg- 
istrars." 

LOUISIANA. 

"Sec.  3.  He  (the  voter)  shall  be  able  to  read  and  write, 
and  shall  demonstrate  his  ability  to  do  so  when  he  applies 
for  registration,  by  making,  under  oath  administered  by  the 


244  THE  AFRO-AMERICAN  CITIZEN. 

registration  officer  or  his  deputy,  written,  application  therefor, 
in  the  English  language  or  his  mother  tongue,  which  applica- 
tion shall  contain  the  essential  facts  necessary  to  show  that 
he  is  entitled  to  register  and  vote,  and  shall  be  entirely  writ- 
ten, dated  and  signed  by  him,  in  the  presence  of  the  registra- 
tion officer  or  his  deputy,  without  assistance  or  suggestion 
from  any  person  or  memorandum  whatever,  "except  the  form 
of  application  hereinafter  set  forth. 

"Sec.  5.  No  male  person  who  was  on  January  1,  1867,  or 
at  any  date  prior  thereto,  entitled  to  vote  under  the  Constitu- 
tion or  statutes  of  any  State  of  the  United  States,  wherein  he 
then  resided,  and  no  son  or  grandson  of  any  such  person  not 
less  than  twenty-one  years  of  age  at  the  date  of  the  adoption 
of  this  Constitution,  and  no  male  person  of  foreign  birth,  who 
was  naturalized  prior  to  the  first  day  of  January,  1885,  shall 
be  denied  the  right  to  register  and  vote  in  this  State  by  reason 
of  his  failure  to  possess  the  educational  or  property  qualifica- 
tions prescribed  by  this  Constitution." 

MISSISSIPPI. 

"Sec.  244.  On  and  after  the  first  day  of  January,  1892, 
every  elector  shall,  in  addition  to  the  foregoing  qualifications, 
be  able  to  read  any  section  of  the  Constitution  of  this  State; 
or  he  shall  be  able  to  understand  the  same  when  read  to  him, 
or  to  give  a  reasonable  interpretation  thereof." 

NORTH   CAROLINA. 

"Art.  VI.,  Sec.  4.  Every  person  presenting  himself  for  reg- 
istration shall  be  able  to  read  and  write  any  section  of  the 
Constitution  in  the  English  language,  and  shall  show  to  the 
satisfaction  of  the  registrar  his  ability  to  read  and  write  any 
such  section  when  he  applies  for  registration,  and  before  he  is 
registered:  Provided,  however,  That  no  male  person  who  was, 
on  January  first,  one  thousand  eight  hundred  and  sixty-seven, 
or  any  time  prior  thereto,  entitled  to  vote  under  the  laws  of 
any  State  in  the  United  States  where  he  then  resided,  and  no 
lineal  descendant  of  such  person,  shall  be  denied  the  right 
to  register  and  vote  at  any  election  in  this  State  by  reason  of 
his  failure  to  possess  the  educational  qualification  aforesaid." 

RACE    SEGREGATION    IN    SOUTHERN    CITIES. 

The  Democrats  in  their  efforts  to  antagonize  the  colored 
race  have  hit  upon  a  new  plan  in  recent  years  of  restricting 
the  residence  of  Afro-Americans  to  certain  blocks  or  streets 
in  cities. 

The  segregation  ordinance,  now  in  force  in  Baltimore,  was 
introduced  in  the  City  Council  by  Samuel  L.  West,  councilman 
from  the  Thirteenth  Ward,  passed  in  March,  1911,  and  ap- 
proved by  Mayor  J.  Barry  Mahool,  on  April  7,  1911.  It  is 
called  "An  ordinance  for  preserving  peace,  preventing  con- 
flict and  ill  feeling  between  the  white  and  colored  races  in 
Baltimore  City,  and  promoting  the  general  welfare  of  the 
city,  by  providing,  so  far  as  practicable,  for  the  use  of  separate 
blocks  by  white  and  colored  people  for  residences,  churches 
and  schools." 

Councilman  West,  who  is  a  Democrat,  is  very  proud  of  his 
segregation  work  and  has  issued  a  pamphlet  with  his  portrait 
on  the  cover,  giving  the  text  of  the  ordinance  and  the  story 
of  its  enactment.  He  explains,  in  a  recent  newspaper  article, 
that  this  was  necessary,  owing  to  the  great  interest  in  segre- 
gation which  has  been  aroused  in  the  Democratic  South  since 
the  passage  of  his  ordinance.  "It  has  kept  me  busy  sending 
and  explaining  copies  of  the  ordinance,"  said  Samuel  L.  West. 
"I  have  never  known  an  instance  in  which  there  was  greater 
interest   in    a   city   ordinance." 

The  ordinance  had  the  support  of  the  Democratic  press  and 
people.  The  Republicans  opposed  it.  This  is  made  clear  in  a 
note  in  the  pamphlet,  as  follows: 

"Note — All  persons  who  voted  for  the  ordinance  are  Demo- 
crats;  all  who  voted  against  are  Republicans." 


THE  AFRO-AMERICAN  CITIZEN.  245 

PRESIDENT     TAFT    DENOUNCES    LYNCHING. 

President  Taft  is  on  record  in  many  places  and  on  many 
occasions  as  denouncing  lynching  in  the  strongest  possible 
terms,  and  advocating  punishment  for  that  crime  to  the  full 
extent  of  the  law.  At  a  meeting  held  April  9,  1912,  in  Metro- 
politan A.  M.  E.  Church,  Washington,  D.  C,  for  the  purpose 
of  raising  funds  for  the  building  of  a  gymnasium  at  Howard 
University,  President  Taft  condemned  mob  law  in  the  follow- 
ing terms: 

"Now  take  the  matter  of  lynching.  That,  as  well  as  the 
administration  of  our  criminal  law,  forms  a  disgraceful  page 
in  our  social  history.  I  just  think  it  is  well  to  take  a  text  on 
that  subject.  Now  I  know  that  our  courts  are  not  perfect.  I 
know  that  they  don't  apply  the  law  with  certainty  and  dispatch 
in  the  criminal  cases  as  they  ought  to,  and  I  believe  that  part 
of  this  departure  from  law  as  is  the  case  in  lynching  and 
disorder  is  due  to  the  fact  that  courts  are  not  certain  and  are 
not  full  of  dispatch  in  the  justice  meted  out  in  criminal  cases. 
But  we  must  not  attribute  it  all  to  the  courts.  There  is  among 
our  people  a  disposition  to  forget  the  sanctity  of  the  law  and 
not  to  know  that  no  civilization  in  any  country  can  live  unless 
the  law  is  respected.  Now,  lynching  is  claimed  by  some  as 
being  justified  because,  as  they  say,  it  is  applied  only  to  per- 
sons guilty  of  one  special  crime  that  is  particularly  heinous  to 
all  of  us.  But  that  is  not  true.  Statistics  show  that  lynching 
is  applied  to  those  charged  with  a  great  many  crimes,  and  the 
moment  you  transgress  once  and  the  moment  that  the  mob 
acquires  the  wolfish  desire  for  human  blood,  the  example  is 
dreadful  to  the  community  in  which  the  exhibition  of  lawless- 
ness is  given.  And  there  is  not  any  crime  (I  don't  care  what 
it  is)  that  justifies  a  departure  from  the  law  or  the  summary 
punishment  by  a  mob  of  the  person  who  is  charged  with  guilt. 
It  is  one  of  the  serious  questions  that  we  have  to  face  in  this 
country.  We  have  not  among  all  of  our  people  as  profound  a 
respect  for  the  law  and  the  necessity  for  obedience  to  it  as  we 
ought  to  have,  and  that  is  part  of  the  reason  why  we  have  this 
exhibition  of  lawlessness  over  the  country  and  these  cruel 
murders  (for  that  is  what  they  are,  for  it  is  no  less  a  murder 
when  40  0  participate  in  the  killing  of  one  man);  ordinarily 
it  is  accompanied  by  a  great  deal  more  of  cowardice  by  reason 
of  the  fact  that  400  are  engaged  in  such  a  crime.  And  the 
only  way  by  which  it  can  be  suppressed  is  that  some  time 
we  shall  h#ve  men  as  sheriffs,  men  as  governors,  and  as  prose- 
cutors and  as  jurors  who  will  see  to  it  that  the  men  engaged 
in  pulling  the  rope  under  those  conditions  shall  themselves 
swing  by  the  rope.  Wherever  it  occurs  it  is  to  be  condemned 
and  rooted  out,  and  this  can  only  be  done  by  developing  an 
individual  and  public  opinion  demanding  the  enforcement  of 
the  law." 

In  an  address  to  the  A.  M.  E.  Conference  in  convention  Sep- 
tember 15,  1908,  Judge  Taft,  discussing  the  lynchings  of 
colored  people,  said: 

"For  a  length  of  time  it  seems  to  be  altogether  abated,  and 
then  there  will  be  an  outbreak,  a  mob  will  be  formed,  devel- 
oping the  most  fiendish  cruelty,  manifesting  itself  in  the 
blindest  and  most  unreasonable  assaults  upon  perfectly  inno- 
cent people  simply  because  of  their  color.  It  is  only  fair  to 
say  that  such  brutish  exhibitions  are  not  confined  to  any  one 
section.  It  is  impossible  to  read  accounts  of  this  sort  without 
having  one's  blood  boil  with  indignation  that  there  can  reside 
in  the  human  breast  such  a  savage  and  beastly  impulse  and 
motive." 

"you   stood  like  a  solid  rock." 

No  feature  of  the  National  Convention  which  nominated 
Mr.  Taft  for  a  second  presidential  term  was  more  gratifying 
than  the  vindication  which  the  course  of  the  colored  delegates 
rendered  against  the  assertions  that  they  would  be  induced 


246  THE  A FTiO- AMERICAN  OITTZEN. 

to  violate  the  pledges  or  instructions  under  which  they  had 
been  sent  as  representatives  of  their  respective  communities. 
In  a  speech  to  a  delegation,  composed  in  part  of  delegates  to 
the  convention,  which  called  upon  him  at  the  White  House 
on  July  18th,  he  said: 

"I  want  to  say  to  you  how  much  I  appreciate  your  standing 
firm  in  my  behalf  at  a  time  when  it  was  intimated  to  the 
country  that  we  could  not  depend  upon  you.  You  demon- 
strated there  your  appreciation  of  the  accomplishments  of  the 
Republican  Party  for  your  race  in  the  past,  and  your  abiding 
faith  in  its  future  friendship;  you  stood  like  a  solid  rock." 

Discussing  the  general  rights  of  the  Afro-American,  he  said: 

"The  Republican  Party  ought  to  be  maintained  because 
of  its  useful  past  and  its  useful  future.  It  has  been  the  party 
for  the  maintenance  of  the  equal  rights  of  the  Negro.  It 
has  not  always  succeeded  in  rounding  out  those  rights  in 
accordance  with  the  letter  of  the  Constitution,  but  it  has 
accepted  the  responsibility,  and  every  member  of  the  party 
who  is  conscious  of  what  it  ought  to  stand  for  is  ready  to 
continue  the  fight  for  your  constitutional  rights. 


Nothing  strikes  a  deadlier  blow  at  liberty  than  the  insidious 
anneals  made  in  her  name  In  times  of  public  excitement. — Post- 
master-Ceneral  Cortelyou  on  Lincoln's  Influence  on  American  Life. 

Whenever  called  upon,  the  negro  has  never  failed  to  make 
sacrifices  for  this,  the  only  country  he  has,  and  the  only  flag  he 
loves. — Hon.   Witt.    H.   Taft,    at    Plymouth    Church,   Brooklyn,   N.    V. 

The  greatness  of  our  Nation,  as  shown  in  the  struggle  of  the 
Civil  War,  is  now  everywhere  recognized,  and  in  the  perspective 
of  forty  years  there  Is  none  to  decry  or  belittle  it. — Hon.  Wm.  H. 
Taft,   at    Riverside   Park,   New   York. 

When  we  regard  the  history  of  the  forty  years  through  which 
the  colored  man  of  this  country  has  been  obliged  to  struggle,  the 
progress  which  he  has  made,  material  and  educational,  is  won- 
derful.— Hon.  Wm.  H.  Taft,  at  Kansas  City,  Mo. 

The  leader  of  the  Republican  Party  during  the  Civil  War  wan 
Abraham  Lincoln.  In  all  the  varieties  of  controversy  which  it 
has  since  had  to  deal,  it  has  never  lost  the  inspiration  of  his  lead- 
ership.—Hon.  Wm.   H.  Taft,   at   Kansas    City,   Mo. 

What  the  negro  and  his  friends  demand  Is  equality  of  enforce- 
ment of  the  law  under  the  Constitution,  and  toward  that  end  I 
feel  convinced  that  all  the  Influence  of  industrial  progress  in  the 
South  and  the  closer  union  between  the  sections  necessarily  are 
making. — Hon.   Wm.  H.   Taft,  at   Plymouth   Church,   Brooklyn. 

In  the  history  of  all  the  peoples  of  the  earth  there  is  no  more 
uniform  story  of  absolute  fidelity  to  trust  than  that  which  wa« 
exhibited  by  the  negroes  of  the  South  toward 'the  families  of  tlieir 
masters,  when  the  men  were  gone  to  the  war,  and  none  but  tlic 
women  and  children  were  left  at  home. — Hon.  Wm.  H.  Taft,  at 
Plymouth   Church,   Brooklyn. 

In  the  ballot-box  our  liberties  are  compounded.  See  to  it  that 
it  gives  true  expression  to  the  public  will.  Preserve  It  from  pollu- 
tion; protect  and  defend  it  as  you  would  the  Ark  of  the  Covenant, 
for  it  has  beeen  purchnsed  by  the  priceless  blood  of  countless 
heroes  upon  the  battlefields  of  the  Republic. — Hon.  C.  W.  Fair- 
banks,  at  Baldwin,  Kans.,  June  7,  1001. 

Plans  have  been  suggested  for  the  migration  of  the  negroes 
to  some  other  country,  where  they  would  live  by  themselves  and 
grow  up  by  themselves,  and  have  a  society  by  themselves,  and 
create  a  nation  by  themselves.  Such  a  suggestion  is  chimerical. 
The  negro  has  no  desire  to  go,  and  the  people  of  the  South  would 
seriously  object  to  his  going. —  Hon.  Wm*  H.  Taft,  at  Plymouth 
Church,    Brooklyn. 

The  Democratic  House  Is  giving  us  some  beautiful  example*  of 
its  style  of  economy.  It  attempts  to  reduce  t  be  Tinted  States  to 
fifth  rank  as  a  naval  power  by  refusing  money  for  new  battiesbips; 
it  attempts  to  reduce  the  army  by  cutting  oft"  five  regiments  of 
cavalry:  it  refuses  funds  for  the  Tariff  Board:  It  pares  down  the 
appropriation  for  the  Panama  Canal:  it  grants  no  funds  for  Im- 
provement of  National  parks.  But,  with  an  eye  to  the  votes  of  tbe 
2500  pensioners  in  eaeb  Congressional  district,  it  votes  many 
millions  for  pensions.  Democratic  economy  is  very  lop-sided.— 
Portland   "Oregonian." 


PENSION  LEGISLATION  OF  THE 
REPUBLICAN  PARTY. 


During  the  present  administration  the  work  of  the  Pension 
Bureau  has  at  all  times  been  kept  up  to  date.  Claims  are  now 
taken  up  for  consideration  as  soon  as  they  reach  the  files  of 
the  Bureau  and  are  adjudicated  promptly  when  the  evidence 
necessary  to  determine  their  merits  is  furnished.  Many  claims 
for  increase  under  the  act  of  February  6,  1907,  granting  certain 
rates  when  soldiers  attains  certain  ages,  are  allowed  within  a 
few  weeks  after  they  are  filed. 

The  importance  of  prompt  action  in  these  claims  will  be 
appreciated  when  it  is  noted  that  of  the  2,213,365  persons  who. 
it  is  estimated,  served  in  the  army  and  navy  during  the  Civil 
War,  only  about  500,000  remain  on  the  pension  roll  and  that* 
their  average  is  70  years.  There  were  35,243  names  dropped 
from  the  roll  during  the  last  year  by  reason  of  death. 

There  has  been  a  decrease  of  over  $300,000  in  the  expense  of 
conducting  tb^e  Pension  Bureau  during  the  last  three  years,  the 
expenses  the  last  year  being  the  smallest  since  1882.  At  one 
time  there  were  over  2,000  employees  in  the  Bureau ;  at  the 
present  time  the  number  is  less  than  1,200. 

The  act  of  June  27,  1890,  passed  by  a  Bepublican  Congress  and 
signed  by  a  Bepublican  President,  was  the  first  disability  pen- 
sion law  in  the  history  of  the  world,  granting  to  soldiers  and 
sailors  pensions  for  disability  not  proven  to  have  been  incurred 
in  the  service  and  line  of  duty.  This  was  the  most  far-reaching 
pension  legislation  enacted  after  the  close  of  the  Civil  War  and 
recognized  a  higher  obligation  of  the  people  to  their  disabled 
veterans  than  was  ever  before  formulated  into  law.  Previous 
to  1890  pensions  for  service  in  the  Civil  War  were  granted  only 
to  those  who  were  wounded  in  the  service  or  who  had  contracted 
some  disability  therein,  and  likewise  pensions  were  granted  only 
to  widows,  minor  children,  and  dependent  parents  of  those  who 
died  from  injuries  received  or  disabilities  contracted  in  the 
service.  The  act  of  June  27,  1890,  granted  pensions  to  all  per- 
sons who  served  ninety  days  or  more  during  the  Civil  War  and 
who  were  disabled  from  earning  a  support  by  manual  labor 
from  disabilities  not  due  to  vicious  habits,  without  requiring  the 
applicant  to  prove  that  the  disability  or  disabilities  were  in- 
curred in  the  service.  The  act  also  granted  pensions  to  depen- 
dent widows  of  all  such  persons  without  requiring  them  to 
prove  that  their  husbands  died  of  wounds  received  or  disabilities 
contracted  in  the  service.  The  rate  of  pension  under  the  act  of 
June  27,  1890,  was  from  $6  to  $12  per  month  to  the  survivors 
of  the  Civil  War  in  accordance  with  the  degree  of  disability,  and 
$8  per  month  to  all  widows. 

The  most  important  pension  legislation  enacted  since  the 
passage  of  the  act  of  June  27,  1890,  was  the  act  of  February  6, 
1907,  also  passed  by  a  Bepublican  Congress  and  signed  by  a 
Bepublican  President,  granting  pensions  to  certain  enlisted  men, 
soldiers  and  officers,  who  served  in  the  Civil  War  and  the  war 
with  Mexico.  Under  this  act  any  person  who  served  90  days  or 
more  in  the  military  or  naval  service  of  the  United  States  during 
the  late  Civil  War  or  60  days  in  the  war  with  Mexico  and  who 
was  honorably  discharged  is  entitled  to  a  pension  of  $12  per 
month  on  reaching  the  age  of  62  years,  $15  per  month  on  reach- 
ing the  age  of  70  years,  and  $20  per  month  on  reaching  the  age 
of  75  years.  While  the  rates  to  survivors  under  the  act  of  June 
27,  1890,  were  from  $6  to  $12  per  month,  the  rates  provided  by 
the  act  of  February  6,  1907,  were  from  $12  to  $20  per  month. 

247 


248  PENSION  LEGISLATION  OF  THE  REPUBLICAN  PARTY. 

Over  550,000  certificates  were  issued  under  this  act  between 
the  date  of  its  passage  and  the  close  of  the  last  fiscal  year. 
Less  than  22,000  of  these  were  original  allowances,  the  others 
being  allowances  of  additional  or  increased  rates. 

The  legislation  next  in  importance  is  the  act  of  April  19,  1908, 
to  increase  the  pensions  of  widows,  minor  children,  etc.,  of 
deceased  soldiers  and  sailors  of  the  late  Civil  War,  the  war  with 
Mexico,  the  various  Indian  wars,  etc.,  and  to  grant  a  pension  to 
certain  widows  of  the  deceased  soldiers  and  sailors  of  the  late 
Civil  War.  Under  this  act  all  widows,  minors,  and  helpless 
children  on  the  rolls  at  a  less  rate  were  increased  to  $12  per 
month,  and  the  widows  of  those  who  served  90  days  during  the 
Civil  War  and  who  received  an  honorable  discharge  therefrom 
are  entitled  to  pension  under  this  act,  provided  they  were  mar- 
ried prior  to  June  27,  1890,  dependence  not  being  considered. 
This  act  granted  an  increase  of  pension  to  some  200,000  widows 
and  children  of  deceased  soldiers  and  sailors  of  the  Civil  WTar 
and  the  war  with  Mexico  and  the  various  Indian  wars.  Pen- 
sioners were  not  required  to  file  an  application  in  the  Bureau  of 
Pensions  to  secure  the  increased  rate  provided  by  the  act  of 
April  19,  1908,  as  the  Pension  Agents  were  instructed  to  pay  all 
pensioners  on  the  roll  affected  by  this  act  at  the  increased  rate 
at  the  first  quarterly  payment  occurring-  after  the  passage  of 
said  act.  More  than  60,000  pensioners  received  payment  at  the 
increased  rate  at  the  quarterly  payment  which  occurred  on  May 
4,  1908 — only  fifteen  days  after  the  passage  of  the  act — and  the 
entire  number  of  pensioners  entitled  to  the  benefits  of  this  act 
received  payment  at  the  increased  rate  within  three  months 
after  the  passage  of  the  act.  The  applications  for  original  pen- 
sion received  under  the  act  of  April  19,  1908,  were  given  imme- 
diate attention,  and  in  about  thirty  days  after  the  approval  of 
the  act  the  Bureau  was  issuing  more  than  100  certificates  per 
day  thereunder  to  widows  whose  names  were  not  previously 
on  the  pension  rolls. 

A  very  important  pension  law  has  been  enacted  by  the  present 
Congress,  entitled  "An  act  granting  pensions  to  certain  enlisted 
men,  soldiers  and  officers  who  served  in  the  Civil  War  and  the 
war  with  Mexico,"  which  was  approved  by  the  President  May 
11,  1912. 

This  act  grants  a  pension,  at  rates  varying  from  $13  per 
month  to  $30  per  month — according  to  age  and  length  of  service — 
to  all  honorably  discharged  soldiers  and  sailors  of  the  Civil  War 
who  served  90  days  or  more,  and  $30  per  month  to  all  honr- 
ably  discharged  soldiers  who  served  60  days  or  more  in  the  war 
with  Mexico.  All  survivors  of  the  Civil  War  who  served  two 
years  or  more  are  entitled  to  $30  per  month  upon  reaching  the 
age  of  75  years. 

There  are  now  some  350,000  survivors  of  the  Civil  War  on  the 
pension  roll  under  the  act  of  February  6,  1907,  at  rates  carrying 
from  $2  to  $20  per  month.  Each  of  these  survivors  who  is  pen- 
sioned under  the  act  of  February  6,  1907,  will  be  entitled  to  an 
increase  under  the  act  of  May  11,  1912,  the  increased  rate  vary- 
ing from  $1  per  month  to  $10  per  month.  It  is  estimated  that 
some  420.000  survivors  of  the  Civil  War  will  receive  an  increase 
of  pension  under  the  new  law.  Nearly  400.000  claims  were  filed 
under  this  law  within  one  month  after  the  date  of  its  approval; 
a  large  number  of  certificates  have  already  been  issued  there- 
under, and  it  is  anticipated  that  the  Bureau  of  Pensions  will 
issue  from  700  to  1,000  certificates  per  day  under  this  act  until 
all  claims  filed  have  been  settled.  They  are  being  disposed  of 
in  the  most  expeditious  manner  possible,  the  claims  being  taken 
up  according  to  date  of  receipt  of  application  in  the  Bureau  of 
Tensions.  The  increased  disbursements  on  account  of  pensions 
due  to  this  bill  will,  it  is  estimated,  amount  to  $12,500,000  dur- 
ing the  first  year  and  about  $35,000,000  during  the  second  year. 

This  law  is  the  most  generous  pension  legislation  ever  enacted 
in  behalf  of  the  defenders  of  the  country,  and  it  is  the  first  gen- 
eral pension  legislation  which  has  recognized  length  of  service 
as  a  determining  factor  in  the  rate  granted.     It  also  provides 


PENSION  LEGISLATION  OF  THE  REPUBLICAN  PARTY.  249 

for  an  increase  o*'  pension  with  increasing-  age,  when  the  soldier, 
owing  to  age  and  fche  disabilities  and  infirmities  incident  thereto, 
is  less  able  to  earn  a  support  by  his  own  labor. 

The  number  of  pensioners  now  on  the  roll  is  slightly  in  excess 
of  870,000,  and  the  average  amount  paid  out  in  pensions  each 
month  is  about  $13,000,000. 

The  total  amount  paid  for  pensions  during  the  last  fiscal 
year  was  $157,325,160.35,  disbursed  as  follows: 

On  account  of  the  regular  establishment.  $3,197,834  19 

On  account  of  Civil  War     148,231,665  51 

On  account  of  war   with    Spain 3,951,251  25 

On  account  of  war  of   1812 44,347  45 

On  account  of  war  with  Mexico 1,322,918  11 

On  account  of  Indian  wars   575,086  52 

On  account  of  Treasury   settlements    ....  2,057  32 

The  average  annual  value  of  each  pension  for  the  last  five 
years  has  been  as  follows : 


1911. 

1910. 

1909. 

1909. 

1907. 

Average  annual  value  of  each  pension 

Regular  establishment 

General  law,  Civil  War.    

$178.66 
173.63 
228.58 
143.26 
128.47 
173.47 
144.99 

$171.90 
173.26 
224.44 
139.95 
127.52 
170.91 
145.16 

$169.62 
181.77 
219.96 
135.55 
126.88 
169.40 
145.42 

$167.59 
173.76 
215.80 
180.75 
126.87 
M7.70 
145.10 

$145.60 
178.12 
t04.26 

Act  of  Jun«  27,  1890. 

118.89 

War  with   Spain  „. _ 

127. Id 

Act  of  February  6,   1907.    

170.06 

Act  of  April  19,  1906 _ 

The  following  statement  shows  the  number  of  surviving  sol- 
diers and  sailors  of  the  civil  war  on  the  pension  roll  at  the 
close  of  each  of  the  last  five  fiscal  years,  and  the  amount  of 
pension  paid  to  such  persons  each  of  said  years : 


Year. 

Survivors. 

Disbursement*. 

1907 

1908_ .. 



644,338 
620,985 
593,961 
562,615 
529,884 

Total- 

$102,208,672.40 
110,458,177.00 
106,430,223.90 
105,338,760.50 
103,337,804.96 

1909 

1910.  __ _ 

1911 

529,768,628.35 

The  cost  of  the  pension   system  per  capita  of  population   is 
shown  for  certain  years  as  follows : 


Year. 

Pensioners. 

Total  cost. 

Population. 

Cost  per 
capita. 

1893 _ 

966,012 

993,714 
996,545 
921,083 

$161,774,872.36 
148,765,971  26 
141,752,870.50 
162,631,729.94 

66,349,000 
72,917,000 
80,847,000 
91,972,000 

$2.44 
3  04 

1898-  — 

1903 — _ 

1  76 

1910 _, 

The  following  table  shows  the  amounts  paid  for  pensions  on 
account  of  each  of  the  wars  and  the  regular  establishment  from 
the  foundation  of  the  Government  to  June  30,   1911: 

War  of  the  Revolution    (estimate) $70,000,000  00 

War  of  1812  (service  pension) 45,853,024  19 

Indian  wars    (service   pension) 11,192,205  52 

War  with  Mexico  (service  pension) 45,279,686  83 

Civil  War 3,985,719,836  93 

War  with  Spain  and  insurrection  in  the  Philip- 
pines      34,142,976  37 

Regular   establishment    *       21,705,852  33 

Unclassified     16,488,147  99 

Total  disbursements  for  pensions $4,230,381,730  16 


CONSERVATION  OF  NATURAL 
RESOURCES. 


Steady  Advance  Under  the  Administration   of  President  Taft. 

Each  succeeding  year  the  Government  is  called  upon  to  a 
greater  extent  than  before  to  apply  the  results  of  the  scientific 
investigation  and  study  of  the  natural  resources  of  the  nation 
along  the  line3  of  practical  economic  development  and  rational 
conservation — that  is,  to  secure  the  fullest  possible  utilization 
with  the  least  possible  waste.  Uncle  Sam  is,  for  instance,  the 
largest  owner  of  coal  lands,  oil  lands,  phosphate  lands,  and 
water-power  sites  in  the  United  States,  holding  the  title  to  an 
area  of  such  mineral  lands  aggregating  more  than  ninety  million 
acres.  In  1906  the  Government  began  the  policy  of  withdraw- 
ing from  public  entry  all  lands  underlain  by  coal,  and  since  that 
time  it  has  made  a  great  many  withdrawals,  including  not  only 
coal  but  also  the  other  resources  mentioned.  This  action  has 
been  taken  pending  investigation  of  these  resources  by  the 
united  States  Geological  Survey,  an  investigation  which  in  the 
case  of  coal  lands  is  followed  by  their  classification,  appraisal 
and  restoration  to  entry.  Lands  of  the  other  classes  remain 
Withdrawn  pending1  proposed  legislation  by  Congress  which  shall 
provide  for  their  proper  development. 

In  April,  1909,  was  put  into  force  the  present  comprehensive 
scheme  of  coal  land  classification  under  which  each  40-acre  tract 
of  coal  land  is  classified  and  valued  according  to  the  tonnage 
and  quality  of  its  coal  and  then  restored  to  sale.  The  prices 
of  coal  land  range  all  the  way  from  the  minimum  of  $20  or  $10 
an  acre,  according  to  whether  the  land  is  situated  within  or 
without  the  15-mile  limit  from  a  railroad,  for  lands  containing 
lignite,  the  lowest  grade  coal,  to  more  than  $400  an  acre  for 
land  underlain  by  thick  beds  of  high-grade  bituminous  coal. 

Tnree-qnarters    of   a   Billion   Dollars    in    Coal. 

In  the  last  three  years,  from  April,  1909,  to  June,  1912,  the 
Geological  Survey  has  classified  and  appraised  as  coal  land 
17,024,441  acres,  with  a  total  valuation  of  $721,852,656.  At  the 
minimum  price  at  which  such  lands  were  formerly  sold  this 
acreage  would  represent  but  $275,673,800,  the  difference  under 
the  new  plan  thus  approaching  half  a  billion  dollars  of  eventual 
additional  income  to  the  Government  from  its  public  lands  as  a 
result  of  adopting  the  policy  of  classification.  Coal  land  with- 
drawals are  still  outstanding  to  the  extent  of  68.962,497  acres, 
and  these  lands  are  being  classified  by  the  Geological  Survey 
as  rapidly  as  possible,  the  rate  approximating  10,000,000  acres 
a  year.  The  work  involved  in  the  classification  of  these  coal 
fields  of  the  nation  is  enormous,  and  while  there  is  some 
criticism  of  such  conservation  of  a  national  resource,  perhaps 
the  best  evidence  of  the  soundness  of  the  policy  lies  in  the 
ready  acceptance  of  the  tonnage  estimates  and  valuations  by 
purchasers  of  coal  land,  the  increasing  amount  of  coal  land  thus 
purchased,  and  the  fact  that  the  Geological  Survey  is  constantly 
receiving  requests  that  certain  coal  tracts  be  classified.  Al- 
though $400  or  even  $200  an  acre  may  be  asserted  by  specula* 
tors  to  be  a  prohibitive  price,  compared  with  the  rate  under  the 
Government's  former  "give-away"  policy,  still  when  the  present 
price  is  reduced  to  the  tonnage  rate  of  one  cent,  half  a  cent, 
or  less  per  ton,  it  is  seen  to  be  very  moderate.  Some  of  the 
western  coal  beds  run  as  high  as  50,000  tons  or  more  of  recover- 
able coal  to  the  acre.  A  single  40-acre  tract,  for  example,  in  a 
Montana  withdrawal  recently  made,  contains  over  two  and  a 
half  million  tons  of  coal. 

250 


CONSERVATION  OF  NATURAL  RESOURCES.  251 

Protection    of    the    Public    Petroleum    Deposits. 

Another  public  land  fuel  resource  in  the  proper  development 
of  which  Uncle  Sam  is  taking  an  active  interest  is  petroleum. 
Seven  or  eight  of  the  public  land  States  contain  extensive  oil 
deposits,  and  in  many  localities  the  oil  is  associated  with  nat- 
ural gas.  Large  areas  of  the  western  oil  fields  have  been  geo- 
logically examined,  and  withdrawals  of  oil  land  initiated  by  the 
Survey  now  aggregate  4,774,182  acres  in  Arizona,  California, 
Oregon,  Wyoming,  Utah,  Colorado  and  Louisiana.  These  with- 
drawals have  been  made  in  anticipation  of  much  needed  legis- 
lation, the  present  gold  placer  law  under  which  oil  or  gas  land 
must  be  acquired  being  inadequate  and  resulting  in  fraud  and 
waste.  Competent  authorities  assert  that  the  Government 
should  retain  a  supply  of  petroleum  for  the  American  Navy, 
in  which  every  new  ship  is  now  equipped  with  oil-burning 
boilers. 


Great    Phosphate    Reserve    Owned    by  Uncle    Sam. 

Another  mineral  resource  of  the  public  domain  that  is  of 
great  potential  value  is  the  rock  phosphate  of  Idaho,  Wyoming, 
Utah,  Montana  and  Florida.  In  the  discovery  and  classification 
of  the  lands  containing  it  the  Geological  Survey  has  contributed 
notably  to  the  welfare  of  the  farming  interests,  for  phosphate 
is  a  necessary  plant  food,  being  indeed  equal  to  potash  as  a  fer- 
tilizer. The  world's  supply  of  phosphate  rock  is  very  meager, 
but  fortunately  the  largest  known  deposits  have  been  recently 
discovered  in  the  public  land  States.  As  a  result  of  geologic 
examinations  3,301,151  acres  of  phosphate  land  now  stand  with- 
drawn awaiting  legislation  to  safeguard  them  from  specula- 
tion or  monopolization. 

The    People    Still    Own    Valuable    Water    Powers. 

A  study  of  the  western  rivers  by  Geological  Survey  engineers 
has  developed  the  fact  that  many  very  great  water  powers  are 
still  owned  by  the  Government.  A  large  number  of  power  site 
withdrawals  have  been  made  by  the  President  on  the  recom- 
mendation of  the  Geological  Survey  since  May,  1909,  when  the 
first  of  these  recommendations  was  made.  The  power  site 
withdrawals  now  outstanding  aggregate  1,801,293  acres  dis- 
tributed along  the  important  power  streams  of  the  western 
States.  Reservoir  withdrawals  have  also  been  made  to  the  ex- 
tent of  97,228  acres. 

Public  Water  Reserves  have  also  been  made  in  Utah  and  Wyo- 
ming, embracing   86,122   acres. 


What  has  been  done  for  the  tin-plate  manufacturers  in  the 
United  States  can  be  done  for  American  shipbuilders  and  American 
shipowners.— Hon.  Wm.   S.   Greene,  in   Congress,  April  28,  1904. 

In  no  respect  has  the  President  shown  a  broader,  saner, 
more  enlightened  statesmanship  than  in  his  management  of  the 
Republic's  relations  Tilth  other  nations.  While  refusing  to  shut 
his  eyes  to  the  necessity  of  being  prepared  for  war,  Taft  has 
worked  systematically  to  promote  permanent  peace.  His  greatest 
feat  in  this  connection  was  the  negotiation  of  the  arbitration 
treaties  with  Great  Britain  and  Prance.  Although  he  took  every 
possible  precaution  to  guard  against  sacrifice  of  the  Interests  of 
this  country,  the  Senate  emasculated  the  treaties  partly  from 
partisan  motives  of  the  Democrats,  partly  from  an  unreasonable 
fear  that  the  treaties  might  force  our  consent  to  arbitration  of 
disputes  in  which  we  ought  to  fight  rather  than  yield,  and  partly 
from  a  disposition  to  stickle  for  the  last  iota  of  the  Senate's  pre- 
rogatives. Yet  there  can  be  little  doubt  that  public  opinion 
approves  those  treaties  just  as  they  -were  submitted  to  the  Senate. 
When  Russian  discrimination  against  certain  classes  of  American 
citizens  visiting  that  country  provoked  the  House  of  Representa- 
tives to  pass  a  resolution  insulting  to  Russia  and  calling  for  the 
abrogation  of  the  commercial  treaty  with  that  country,  Taft 
averted  a  quarrel  with  Russia  by  abrogating  the  treaty  before 
the  Senate  acted  on  the  resolution.  He  upheld  the  dignity  of  this 
Nation  and  at  the  same  time  averted  danger  to  peace.— Portland 
"Oregonian." 


THE  RECLAMATION  SERVICE. 


The  Reclamation  Act,  which  originated  in  a  Republican  Con- 
gress in  1902,  is  to-day  generally  recognized  as  one  of  the  wisest 
laws  ever  enacted  by  Congress,  and  second  only  in  importance 
to  that  other  great  Republican  enactment — the  Homestead  Law. 

Under  the  provisions  of  the  law  national  irrigation  has  al- 
ready become  a  most  important  fetor  in  western  development, 
and  its  economic  value  in  providing  a  safety  valve  against  the 
impending  dangers  of  congestion  of  population  in  the  older  set- 
tled portions  of  the  country  can  not  be  estimated.  Conservative 
engineers  believe  that  at  least  25,000,000  acres  of  desert  land  can 
be  converted  by  irrigation  to  small  farms.  This  vast  area, 
capable  of  supporting  millions  of  people,  may  be  brought  to 
cultivation  without  entailing  a  loss  of  a  single  dollar  to  the 
national  treasury,  as  the  land  reclaimed  is  assessed  for  the 
benefits  received,  the  settlers  returning  to  the  United  States  the 
cost  of  reclamation. 

The  Reclamation  Service,  a  separate  Bureau  of  the  Depart- 
ment of  the  Interior,  has  had  charge  of  the  engineering  work 
from  its  inception,  and  notwithstanding  the  enormous  area  em- 
braced in  the  arid  States — two-fifths  of  the  United  States — has 
completed,  or  has  under  active  construction,  28  projects.  On 
most  of  these  construction  has  progressed  sufficiently  to  irri- 
gate areas  that  are  now  producing  crops.  No  better  evidence 
of  the  wisdom  of  the  law  and  the  business-like  and  practical 
methods  of  its  administration  could  be  submitted  than  the  fact 
that  homes  are  actually  being  made  in  large  numbers  on  the 
land  reclaimed,  and  the  cost  of  the  work  is  being  returned  by 
the  settlers. 

A  summation  of  the  work  of  the  Reclamation  Service  to  Janu- 
ary 1,  1912,  shows  that  it  has  dug  over  6,800  miles  of  canals. 
Placed  end  to  end  these  canals  would  reach  from  New  York  to 
San  Francisco  and  back  again  with  several  hundred  miles  to 
spare.  Some  of  these  canals  carry  the  flow  of  whole  rivers. 
The  tunnels  excavated  are  66  in  number,  and  have  an  aggregate 
length  of  more  than  20  miles.  Three  of  the  highest  dams  in  the 
world  have  been  completed,  and  24,235  canal  structures  and 
2,193  bridges  built.  In  connection  with  this  work  there  have 
been  excavated  more  than  80,000,000  cubic  yards  of  rock  and 
earth.  The  Service  has  built  about  600  miles  of  wagon  roads  in 
desolate  desert  and  mountain  regions,  has  built  and  is  operat- 
ing 1.700  miles  of  telephone  lines  and  75  miles  of  levees.  It  has 
manufactured  340.000  barrels  of  cement  and  cut  millions  of  fe'et 
of  timber  in  the  Government  reserves. 

This  work  is  giving  employment  to  more  than  8,000  men. 

The  most  important  engineering  work  now  under  way  is  the 
Eagle  dam  in  New  Mexico  and  the  Arrowrock  dam  in  Idaho. 
In  connection  with  the  latter  the  Service  has  built  and  is  operat- 
ing a  standard  gauge  railroad  21  miles  long. 

As  a  result  of  the  work  to  date  water  is  available  for 
1,025,000  acres  of  land.  The  gross  value  of  the  crops  produced 
on  the  lands  irrigated  by  the  Government  in  1911  was  more  than 
$20,000,000.  Approximately  15,000  families  are  now  resiaing  on 
farms  which  are  being  watered  by  Government  canals,  and  not 
less  than  25,000  people  have  been  added  to  the  population  of  the 
cities,  towns  and  villages.  As  a  result  of  the  work  it  is  esti- 
mated that  land  values  have  increased  more  than   $105,800,000. 

252 


THE  BUREAU  OF  MINES. 


One  of  the  notable  achievements  of  the  administration  of 
President  Taft  was  the  creation  of  a  Bureau  of  Mines  in  the 
Department  of  the  Interior.  The  legislation  was  the  result  of 
a  general  demand  from  capital  and  labor  that  something  be  done 
toward  reducing  the  appalling  loss  of  life  in  the  coal  mines. 
Tne  bill  was  proposed  by  Republican  members  in  both  Houses 
of  Congress,  and  was  passed  by  the  Republican  majorities  in  the 
House  and   Senate.     The   Bureau  was  created  July   1,   1910. 

The  statistics  of  the  deaths  in  the  coal  mines  since  this  work 
was  inaugurated  show  the  wisdom  and  the  urgent  necessity  of 
tnis  Republican  legislation.  In  the  year  1907,  before  the  Federal 
Government  acted,  3,200  men  were  killed  in  the  coal  mines,  or 
4.70  in  every  1,000  men  employed.  This  disgraceful  record  has 
never  been  equalled  since.  In  1908,  2,447  men  were  killed ;  in 
1909,  2,637  men,  and  in  1910  the  total  deaths  reached  2,838.  The 
figures  are  not  yet  available  for  1911,  but  an  estimate  shows 
about  2,500  men  killed. 

it  will  be  seen  from  the  statistics  that  the  Bureau  of  Mines 
still  has  a  tremendous  problem  on  its  hands,  and  that  in  order 
to  further  decrease  the  number  of  deaths  it  will  be  necessary 
in  the  future  to  have  the  same  fostering  care  and  that  the  ade- 
quate appropriations  granted  by  a  Republican  Congress  must  be 
continued.  With  proper  support,,  the  indications  are  that  the 
number  of  deaths  will  be  materially  reduced  within  the  next 
few  years. 

In  the  short  period  of  its  existence,  the  Bureau  of  Mines 
has  accomplished  just  enough  to  show  some  of  the  real  causes 
of  the  terrible  mine  disasters  with  the  wholesale  slaughter  of 
miners  and  some  of  the  remedies.  The  Bureau  has  demonstrated 
to  the  operators  that  coal  dust  is  a  greater  menace  to  the 
miner  than  gas,  and  has  offered  a  number  of  remedies  which 
are  being  applied  in  many  mines  throughout  the  country.  The 
Bureau  has  succeeded  in  convincing  many  operators  and  miners 
that  the  explosives  they  were  using  were  extremely  dangerous, 
and  has  had  substituted  powders  that  give  the  miner  a  chance 
for  his  life.  The  Bureau  is  maintaining  seven  rescue  cars  and 
six  sub-stations  at  which  miners  are  being  taught  the  use  of 
modern  rescue  apparatus.  The  Federal  rescuers  have  responded 
promptly  to  every  big  mine  disaster,  and  have  succeeded  in  sav- 
ing more  than  forty  lives  and  have  stopped  the  destruction  of 
brave  volunteer  rescuers  which  formerly  added  heavily  to  the 
death  roll.  In  past  years  a  rescuer  has  lost  his  life  for  every 
miner  saved. 

Fuel  Investigations. 

The  fuel  investigations  of  the  Bureau  of  Mines  have  already 
resulted  in  economies  involving  millions  of  dollars  to  the  peo- 
ple of  the  United  States  and  a  consequent  conservation  of  the 
fuel  resources  of  the  nation.  Charged  with  investigations  look- 
ing toward  greater  efficiencies  in  the  use  of  the  fuels,  the 
Bureau  has  shown  the  possibilities  in  burning  coals  in  properly 
constructed  furnaces,  in  the  gas  producer  in  connection  with  the 
gas  engine  and  by  other  methods.  It  has  also  demonstrated  the 
use  of  low-grade  fuels  which  in  the  past  were  considered  prac- 
tically worthless.  To  cite  one  or  two  instances :  An  important 
result  attained  in  fuel  investigations  is  the  establishment  of 
the  fact  that  the  low-grade  bituminous  coals  and  lignites  of 
the  country,  of  which  there  are  tens  of  millions  of  acres  here- 
tofore  considered   of   but   slight   industrial   value,    can   be   con- 

253 


254  THE  BUREAU  OF  MINES. 

verted  into  gas  and  used  in  the  gas  engine  with  more  than  dou- 
ble the  efficiency  attainable  under  the  steam  boiler.  In  other 
words,  the  discovery  has  doubled  the  value  of  these  coals.  This 
applies  also  to  millions  of  tons  of  inferior  coal  which  in  min- 
ing operations  is  annually  left  underground  and  permanently 
lost. 

The  investigations  also  show  that  some  of  the  peats,  found 
in  great  abundance  in  the  New  England,  North  Central  and 
Atlantic  States,  but  heretofore  considered  of  little  value,  may 
be  used  to  advantage  as  a  source  of  power  in  tne  gas  producer, 
either  for  local  farm  purposes  or  for  large  power  plants,  and 
also  that  it  is  practicable  and  economical  to  make  briquets,  a 
superior  and  smokeless  fuel,  out  of  the  millions  of  tons  of  slack 
and  coal  dust  now  wasted  annually. 

All  of  these  scientific-economic  investigations,  experiments 
and  tests  of  the  Government,  fostered,  encouraged  and  provided 
for  by  Republican  legislation,  should  be  contined  and  extended. 
Upon  the  economical  development  of  our  natural  resources  de- 
pends in  very  large  measure  the  continuance  of  our  national 
supremacy  and  the  prosperity  of  our  people,  and  these  evidences 
of  wise  statesmanship  and  forehanded  legislation  show  that  the 
party  of  progress  can  be  relied  upon,  in  the  future  as  in  the 
past,  to  carry  out  such  policies,  which,  while  under  the  strict 
wording  of  the  appropriation  acts  are  for  the  uses  of  the  Gov- 
ernment, are  in  reality  for  the  benefit  of  all  the  people  of  the 
countrv. 


We  cannot  help  labor  by  reducing  the  value  of  the  money  In 
which  labor  is  paid. — Hon.  Wm.  McKinley  to  delegation  of  work- 
lngmen,    August   24,   1896. 

The  organization  of  capital  Into  corporations  with  the  position 
of  advantage  which  this  gives  it  in  a  dispute  with  single  laborers 
over  wages,  makes  it  absolutely  necessary  for  labor  to  unite  and 
maintain  itself. — Hon.  Wm.  H.  Taft,  at  Cooper  Union,  New  York 
City. 

I  am  a  protectionist  because  I  can  see  very  clearly  that  the 
political  independence  which  every  patriot  would  sacrifice  his 
life  to  preserve  to  his  country  can  only  be  safely  assured  when 
we  are  industrially  independent,  and  I  am  glad,  If  It  requires  that 
lesser  sacrifice,  to  forego  a  few  pennies  of  my  savings  to  do  my 
part  to  secure  that  assurance. — Prof.  R.  H.  Thurston,  of  Cornell 
University,    in    the    "American    Economist." 

But  the  most  gratifying  feature  of  this  picture  of  banking 
and  financial  conditions  in  our  country  lis  the  fact  that 
deposits  in  savings  banks— those  institutions  for  the  safe- 
keeping of  the  earnings  of  workingmen  and  widows  and 
orphans  and  children  of  the  country— have  increased  from 
$550,000,000  in  1870  to  $4,200,000,000,  in  1008.  What  say  you 
business  men,  of  the  future  of  a  country  whose  working- 
men  and  working  women  and  children  have  four  billion 
dollars   laid  aside   for  a  "rainy   day." — O.  P.   Austin. 

Uabor  needs  capital  to  secure  the  best  production,  while  capital 
needs  labor  in  producing  anything.  The  share  of  each  laborer  in 
the  joint  product  Is  affected  not  exactly,  but  in  a  general  way,  by 
the  amount  of  capital  in  use  as  compared  with  the  number  of  those 
who  labor.  The  more  capital  in  use  the  more  work  there  is  to  do, 
and  the  more  work  there  is  to  do  the  more  laborers  are  needed. 
The  greater  the  need  for  laborers  the  better  their  pay  per  man. 
Manifestly,  it  is  in  the  direct  interest  of  the  laborer  that  capital 
shall  Increase  faster  than  the  number  of  those  who  work.  Every- 
thing which  legitimately  tends  to  increase  the  accumulation  of 
wealth  and  its  use  for  production  will  give  each  laborer  a  larger 
share  in  the  joint  result  of  capital  and  labor. — Hon.  Wat.  H.  Taft, 
at  Cooper  Union,  New  York  City. 

The  people  have  their  diversities  of  capacity  and  character, 
their  differences  of  aptitude  and  training,  their  varied  occupations 
that  absorb  their  time  and  thought,  and  they  are  presumed  to 
have  enough  intelligence  to  choose  men  fit  to  exercise  the  various 
In  net  ions  of  public  life  and  administer  an  organized  system  of 
government  which  shall  fairly  represent  their  will  and  conserve, 
their  interests,  it  is  by  their  choice  of  delegates  and  representa- 
tive* and  of  "servants,"  if  you  will,  that  they  show  their  capacity 
for  self-government,  and  not  by  undertaking  to  supervise  and 
correct  the  work  themselves.  They  do  not  pretend  to  be  I  heir 
own  statesmen  and  judges  any  more  than  their  own  lawyers',  their 
own  physicians,  their  own  architects  and  engineers,  their  own 
artists  and  their  own  managers  of  banking,  transportation  and 
industrial    operations. — New    York    "Journal    of    Commerce"    (.Dem.). 


WOODROW  WILSON. 


Woodrow  Wilson,  the  nominee  of  the  Democratic  Party  for 
the  presidency  of  the  United  States,  was  born  at  Staunton, 
Va.,  on  December  28,  1856.  He  was  baptized  under  the  full 
name  of  Thomas  Woodrow  Wilson,  but  he  dropped  the  first 
name  after  entering  university  life.  His  father,  the  Rev. 
Joseph  Ruggles  Wilson,  removed  from  Virginia  to  Georgia 
when  Woodrow  was  about  two  years  of  age,  and  later  preached 
in  various  churches  in  North  and   South  Carolina. 

Of  the  early  life  of  young  Woodrow,  the  Philadelphia 
"Record"  (Democratic),  of  July  3,  1912,  says:  "Mr.  Wilson 
cannot,  like  many  an  office-seeker,  appeal  to  the  sentimentality 
of  the  public  on  account  of  a  self-made  man's  rise  from  poverty. 
His  father  and  grandfather  were  educated  men,  prominent  in 
their  communties,  and  while  not  rich,  were  able  to  give  the 
aspiring  young  scholar  a  liberal  education."  .  .  .  "Young 
Wilson,"  according  to  the  same  authority,  "entered  Davidson's 
College  at  the  age  of  17.  After  two  years  he  entered  Prince- 
ton, from  which  he  graduated  in  1879.  He  then  studied  law 
in  the  University  of  Virginia,  receiving  the  degree  of  bachelor 
of  law  in  188  2.  He  received  the  degree  of  bachelor  of  phil- 
osophy from  Johns  Hopkins  University  in  1886;  that  of  doctor 
of  laws  from  Lake  Forest  University,  North  Carolina  in  1887, 
and  that  of  doctor  of  literature  from  Yale  University  at  its 
bi-centennial  celebration. 

"He  occupied  the  position  of  adjunct  professor  in  history  in 
Bryn  Mawr  College,  and  was  afterwards  professor  of  history 
and  political  economy  at  the  Wesleyan  University.  In  1890 
he  became  professor  of  jurisprudence  and  political  economy 
at  Princeton  University.  He  also  gave  a  course  of  lectures 
in  Johns  Hopkins  University  for  some  years.  Professor  Wilson 
became  the  thirteenth  in  the  roll  of  presidents  at  Princeton 
University  in  1902,  and  the  first  layman  to  hold  this  office, 
all  his  predecessors  having  been  Presbyterian  clergymen.  He 
is,  however,  a  ruling  elder  in  the  Second  Presbyterian  Church 
at  Princeton. 

"Mr.  Wilson,"  according  to  the  same  authority,  "had,  in 
his  early  years,  an  ambition  to  enter  political  life,"  for  the 
sketch  of  his  career  which  it  publishes,  says:  "It  was  not 
toward  scholarship  that  his  ambition  led  him.  While  in 
college  he  resolved  to  become  a  public  man.  To  that  end 
he  studied  law  and  hung  out  his  shingle,  but  his  legal  pratice" 
(which,  according  to  'Who's  Who  in  America,'  occurred  in 
Atlanta,  Ga.)  "was  not  lucrative,  and  after  eighteen  months  of 
which  he  gave  it  up,  and  with  it  for  years  to  come,  his  desire 
for  office." 

He  was,  however,  after  his  long  service  in  the  universities 
above  referred  to,  nominated  in  1910  as  the  Democratic  candi- 
date for  the  governorship  of  New  Jersey,  and  elected;  and 
after  a  stormy  two  years  in  support  of  reform  legislation  of 
a  varied  character,  including  nomination  of  candidates  at 
primaries,  instruction  of  the  electorate  through  a  preferential 
vote  of  members  of  the  Legislature  as  to  their  choice  for 
the  United  States  Senate  and  other  measures  of  this  character, 
he  entered  upon  his  candidacy  for  the  Democratic  presidential 
nomination. 

The  early  part  of  the  summer  of  1911  was  spent  by  him  in 
a  tour  of  the  West.  "It  was  then"  (says  the  Philadelphia 
"Ledger,"  of  July  3,  1912)  "that  he  came  out  more  clearly 
than  ever  as  a  progressive.  He  declared  in  favor  of  the  initi- 
ative, the  referendum  and  recall  except  for  judges,  and  in  an 
address  before  the  Kentucky  Bar  Association  took  severely  to 
task   corporation   lawyers,    "who   permitted   themselves,"   he   de- 

255 


256  WOODROW  WILSON. 

clared,  "to  become  the  mere  servants  of  the  trusts,  with  the 
results  that  it  had  become  more  and  more  difficult  to  get  for 
the  bench  judges  who  would  sympathize  with  the  needs  of 
the  common  people." 

The  publications  In  which  Professor  Wilson  has  recorded 
his  views  and  expressions  of  opinion  are,  according  to  "Who's 
Who  in  America,"  as  follows:  "Congressional  Government — 
a  Study  in  American  Politics,"  1885;  "The  State — Elements 
of  Historical  and  Pra(  ical  Politics,"  1889;  "Division  and 
Reunion  of  1829  to  188  V'  1893;  "An  Old  Master  and  Other 
Essays,"  1893;  "Mere  Literature  and  Other  Essays,"  1896; 
"George  Washington,"  1896;  "A  History  of  the  American 
People,"  1902. 

The  belief  that  real  sentiments  of  the  average  men  are 
more  likely  to  be  expressed  as  a  result  of  their  thoughtful 
study  than  their  expressions  at  a  moment  when  they  are  seek- 
ing popular  support  at  the  polls  has  drawn  attention  to  the 
expressions  in  the  publications  above  noted,  and  these  are 
discussed  in  the  speech  of  the  Hon.  Henry  A.  Rodenberg,  in 
the  United  States  House  of  Representatives,  printed  in  the 
Congressional  Record  of  July  26,  1912,  as  follows: 

"Mr.  Chairman,  when  a  great  political  party  has  nominated 
its  candidate  for  the  office  of  President  of  the  United  States 
it  is  only  natural  that  the  people  should  immediately  manifest 
an  intense  interest,  both  in  the  personality  of  the  nominee 
and  in  the  principles  for  which  he  is  known  to  stand.  His 
habits  of  life,  his  opinions  on  social  and  economic  questions, 
his  theories  of  governmental  policy  become  at  once  legitimate 
and  interesting  subjects  of  inquiry  and  investigation. 
The  people  are  more  vitally  interested  in  ascertaining  the 
honest  convictions  of  the  candidate,  formed  in  a  time  of  sober 
and  mature  reflection,  uninfluenced  by  ambition  or  hope  of 
political*  preferment,  than  they  are  in  any  professions  or 
promises  contained  in  a  platform  which  they  know  has  been 
constructed  to  meet  the  exigencies  of  practical  politics. 
Woodrow  Wilson  has  been  in  public  life  for  a  short  time, 
having  served  less  than  two  years  in  the  office  of  Governor  of 
the  State  of  New  Jersey,  that  being  the  only  political  office 
that  he  has  ever  held,  but  he  has  had  a  long  and  honorable 
career  as  president  of  Princeton  University,  one  of  the  great 
universities  of  this  Nation,  and  he  has  had  even  a  longer  career 
as  an  author  of  note  and  distinction.  He  has  been  a  most 
prolific  writer,  exploring  every  corner  and  nook  of  the  field 
of  history,  sociology  and  political  economy.  In  his  voluminous 
writings  and  public  addresses  every  subject  in  which  the 
American  people  have  ever  shown  the  slightest  interest,  with 
the  possible  exception  of  the  question  of  race  suicide,  has 
been  treated  by  him  in  a  manner  which  reflects  great  credit 
on  his  intellectual  courage  and  independence,  if  not  upon  his 
political  foresight  and  acumen.  But  I  want  to  say  in  defense 
of  the  scholarly  professor  and  man  of  letters  that  at  the  time 
he  was  expressing  his  honest  views  on  these  multitudinous  sub- 
jects, his  fine  literary  soul  was  unvexed  and  unannoyed  by 
the  alluring  prospects  of  political  preferments.  The  shadow 
of  the  White  House  had  not  fallen  athwart  his  peaceful  path. 
The  presidential  bee  had  not  yet  begun  to  buzz.  In  fact,  it 
had  not  even  been  hatched. 

"It  is  with  this  period  in  the  professor's  life  that  I  purpose 
to  deal  to-day.  For  the  benefit  of  such  as  do  not  have  ready 
access  to  his  numerous  publications,  I  desire  to  call  attention 
to  some  of  the  startling  views  expressed  by  Professor  Wilson 
on  men  and  measures,  principally  as  they  appear  in  his  most 
important  work,  'History  of  the  American  People.'  This  his- 
tory was  published  in  1902,  only  ten  years  ago.  At  the 
time  of  publication  Professor  Wilson  was  forty-six  years  of 
age,  and  by  reason  of  his  erudition  and  scholarly  attainments 
enjoyed  then,  as  he  does  now,  the  titles  of  doctor  of  philosophy, 
doctor  of  literature  and  doctor  of  laws.  '  It  will  be  apparent, 
therefore,  that  the  views  expressed  by  him  are  not  the  hasty 
and  ill-considered  fulminations  of  a  mere  college  graduate, 
but  rather  the  sober  and  philosophic  reflections  of  the  matured 
student  and  thinker. 


WOODROW  WILSON.  257 

"Mr.  Chairman,  Thomas  Jefferson  is  regarded  as  the  founder 
of  the  Democratic  Party,  and  by  common  consent  is  accepted 
as  its  patron  saint.  .  .  .  To-day  the  mantle  of  the  im- 
mortal Jefferson  rests  upon  the  narrow  but  classic  shoulders 
of  the  Princeton  professor.  That  mantle  was  placed  there 
amid  scenes  of  great  excitement,  on  the  second  day  of  July, 
by  the  frenzied  followers  of  the  lamented  Jefferson  in  con- 
vention assembled  at  Baltimore.  The  spirit  of  the  author  of 
the  Declaration  of  Independence  would  certainly  have  pro- 
tested, and  protested  vigorously,  against  this  action  of  that 
convention.  In  righteous  indignation  he  would  have  pointed 
to  page  3,  volume  4,  of  Woodrow  Wilson's  'History  of  the 
American   People,'   in  which   appears   this   sentiment: 

"  'The  difference  between  Mr.  Jefferson  and  General  Jackson 
was  not  a  difference  of  moral  quality  so  much  as  a  difference 
in  social  stock  and  breeding.  Mr.  Jefferson,  an  aristocrat,  and 
yet  a  philosophical  radical,  deliberately  practiced  the  arts  of 
the  politician  and  exhibited  oftentimes  the  sort  of  insincerity 
which  subtle  natures  yield  to  without  loss  of  essential 
integrity.' 

"He  would  next  have  pointed  to  page  289  of  Wilson's 
'Life  of  George  Washington,'  in  which  Professor  Wilson  char- 
acterizes Thomas  Jefferson  as  'a  philosophical  radical  rather 
than  a  statesman,'  and  says  further:  'Washington  found  him 
a  guide  who  needed  watching.' 

"Mr.  Chairman,  if  Woodrow  Wilson  is  correct  in  saying 
that  Thomas  Jefferson  was  at  heart  an  aristocrat  while  pre- 
tending to  be  of  and  for  the  common  people,  if  he  is  correct 
in  placing  upon  him  the  brand  of  insincerity,  then  Jefferson 
was  easily  the  greatest  demagogue,  the  most  consummate 
hypocrite  that  has  ever  lived  in  the  tide  of  the  time.  If  Wilson 
is  correct  in  saying  that  in  the  critical  formative  period  of 
our  Nation's  life  Jefferson  was  wanting  in  loyalty  to  Washing- 
ton, in  whose  cabinet  he  served,  and  that  he  was  'a  guide  who 
needed  watching,'  then  I  insist  that  Jefferson  was  not  a 
patriot  but  a  dissembler  and  an   intriguer. 

"Mr.  Chairman,  I  was  under  the  impression  that  the  spirit 
of  'knownothingism'  that  was  once  rampant  in  this  country 
was  long  since  dead.  I  was  under  the  impression  that  that 
spirit  had  been  crushed  out  of  existence  forever  by  the  con- 
vincing power  of  the  great  truth  which  lies  at  the  very  founda- 
tion of  our  Republican  form  of  government,  that  'all  men 
are  created  free  and  equal,  and  endowed  by  their  Creator  with 
certain  inalienable  rights.'  I  did  not  believe  that  the  time 
would  ever  come  when  a  great  political  party  would  nominate 
as  its  candidate  for  President  a  man  in  whom  there  seemed 
still  to  linger  a  trace  of  the  intolerance,  the  prejudice  and  the 
narrow  resentment  that  gave  birth  to  the  un-American,  anti- 
foreign  agitation  of  some  fifty  years  ago. 

"On  page  212,  volume  5,  .  ^^drow  Wilson's  'History  of  the 
American  People,'   I  find  this  remarkable  statement: 

"  'Now  there  came  multitudes  of  men  of  the  lowest  class 
from  the  south  of  Italy  and  men  of  the  meaner  sort  out  of 
Hungary  and  Poland,  men  out  of  the  ranks  where  there  was 
neither  skill  nor  energy  nor  any  initiative  of  quick  intelli- 
gence; and  they  came  in  numbers  which  increased  from  year 
to  year,  as  if  the  countries  of  the  south  of  Europe  were 
disburdening  themselves  of  the  more  sordid  and  hapless  ele- 
ments of  their  population.  The  people  of  the  Pacific  Coast 
had  clamored  these  many  years  against  the  admission  of 
immigrants  out  of  China,  and  in  May,  1892,  got  at  last  what 
they  wanted — a  federal  statute  which  practically  excluded 
from  the  United  States  all  Chinese  who  had  not  already  ac- 
quired the  right  of  residence;  and  yet  the  Chinese  were  more 
to  be  desired,  as  workingmen  if  not  as  citizens,  than  most 
of  the  coarse  crew  that  came  crowuing  in  every  year  at  the 
eastern  ports.' 

"Mr.  Chairman,  it  has  long  been  our  proud. boast  that  ours 
is  the  land  of  liberty  and  of  opportunity.  Here  on  the  hos- 
pitable shores  of  the  'home  of  the  free'  the  persecuted  of  the 
earth  have  always  found  a  refuge  and  an  asylum.  Our  wel- 
come has  gone  out  to  all  alike.     We  recognize  neither  class  nor 


258  WOODROW  WILSON. 

caste,  nationality  nor  religion.  Every  honest  immigrant,  no 
matter  from  what  country  he  hails,  whether  from  the  north 
of  Europe,  the  south  of  Europe,  the  east  of  Europe  or  the 
west  of  Europe,  if  able  to  meet  the  requirements  of  our 
liberal  immigration  laws,  is  invited  to  partake  of  our  liberties 
and  to  join  with  us  in  working  out  the  manifest  destiny  of 
the  American  Republic.  It  is  this  spirit  that  lies  at  the  basis 
of  our  national  greatness.  ...  I  would  not  discriminate 
against  the  Italian,  the  Hungarian  or  the  Pole.  I  have  not 
forgotten  that  Columbus  was  the  son  of  an  Italian  laborer. 
I  have  not  forgotten  that  among  the  great  sculptors  and  artists 
who  have  given  Italy  her  proud  place  in  the  world  of  arts  are 
the  sons  of  men  who  earned  their  bread  in  the  sweat  of  their 
brows.  Ah,  genius  knows  no  nationality,  and  is  not  the 
result  of  birth  or  location.  Italy  has  her  Garibaldi;  Poland, 
her  Kosciusko;  Hungary,  her  Kossuth,  and  even  the  learned 
Princeton  professor  may  profit  by  reading  the  inspiring  story 
of  their  heroic  lives. 

"I  must  take  issue  with  Professor  Wilson.  I  believe  that 
these  people  are  superior  in  every  way  to  the  Chinese,  and 
that  it  is  an  insult  to  the  Caucasian  race  to  say  that  they 
•are  not.  Professor  Wilson  seems  to  be  especially  fond  of  the 
Chinese.  Continuing  the  quotation,  which  I  have  just  read 
on  page  213,  volume  5,  of  Woodrow  Wilson's  'History  of  the 
"American  People,'  the  professor  proceeds  as  follows: 

"  'They  (meaning  the  Chinese)  had,  no  doubt,  many  an 
unsavory  habit,  bred  unwholesome  squalor  in  the  crowded 
quarters  where  they  most  abounded  in  the  western  seaports, 
and  seemed  separated  by  their  very  nature  from  the  people 
among  whom  they  had  come  to  live,  but  it  was  their  skill, 
their  intelligence,  their  hardy  power  of  labor,  their  knack  at 
succeeding  and  driving  duller  rivals  out,  rather  than  their 
alien  habits  that  made  tfcem  feared  and  hated,  and  led  to  the 
exclusion  at  the  prayer  of  the  men  they  were  likely  to  dis- 
place, should  they  multipl>  The  unlikely  fellows  that  came 
in  at  the  eastern  ports  were  tolerated  because  they  usurped 
no  place  but  the  very  lowest  in  the  scale  of  labor.' 

"Mr.  Chairman,  the  history  of  the  Geary  Act,  which  passed 
in  1892,  and  which  resulted  in  the  exclusion  of  the  Chinese 
from  the  United  States,  te  Is  us  that  the  act  was  passed  upon 
the  unanimous  and  urgen  request  of  American  workingmen, 
who  justly  regarded  the  Chinaman  as  an  alien  incapable  of 
assimilation  and  incapable  of  Americanization.  I  do  not 
agree  with  Professor  Wilson  in  the  statement  that  the  work- 
ingmen of  this  country  were  driven  to  make  demand  upon 
Congress  for  this  legislation  because  of  their  'fear  of  the 
superior  skill  and  intelligence'  of  the  Chinese! 

"The  Democratic  Party,  in  the  platform  adopted  at  Balti- 
more, professes  undying  friendship  for  organized  labor,  and 
then,  as  an  evidence  of  its  sincerity,  nominates  as  its  candi- 
date for  President,  Woodrow  Wilson,  who,  on  the  thirteenth 
day  of  June,  19  09,  only  three  short  years  ago,  in  a 
bacculaureate  address  to  a  graduating  class  at  Princeton,  ex- 
pressed the  following  remarkable  views  on  this  all-important 
subject: 

"  'You  know  what  the  usual  standard  of  the  employe  is  in 
our  day.  It  is  to  give  as  little  as  he  may  for  his  wages. 
Labor  is  standardized  by  the  trades  unions,  and  this  is  the 
standard  to  which  it  is  made  to  conform.  No  one  is  suffered 
to  do  more  than  the  average  workman  can  do;  in  some  trades 
and  handicrafts  no  one  is  suffered  to  do  more  than  the  least 
skillful  of  his  fellows  can  do  within  the  hours  allotted  to  a 
day's  labor,  and  no  one  may  work  out  of  hours  at  all  or  volun- 
teer anything  beyond  the  minimum.  I  need  not  point  out 
how  economically  disastrous  such  a  regulation  of  labor  is. 
It  is  so  unprofitable  to  the  employer  that  in  some  trades  it 
will  presently  not  be  worth  while  to  attempt  anything  at  all. 
He  had  better  stop  altogether  than  operate  at  an  inevitable 
and  invariable  loss.  The  labor  of  America  is  rapidly  becoming 
unprofitable  under  its  present  regulation  by  those  who  have 
determined  to  reduce  it  to  a  minimum.  Our  economic 
supremacy  may  be  lost  because  the  country  grows  more  and 
more  full  of  unprofitable  servants.' 


WOODROW  WILSON.  259 

"I  do  not  agree  with  Professor  Wilson  that  members  of  the 
trades  unions  are  unprofitable  servants.  I  do  not  agree  with 
him  that  the  man  who  belongs  to  a  labor  organization  is 
trying  'to  give  as  little  as  possible  for  his  wages.'  I  do  not 
agree  with  him  that  the  work  of  the  least  skillful  member  of 
a  labor  organization  sets  the  standard  which  marks  the  amount 
of  work  that  his  fellow-craftsmen  can  perform.  I  do  not  be- 
lieve that  great  organization,  the  American  Federation  of 
Labor,  is  trying  to  make  American  labor  unprofitable  by  re- 
ducing it  to  a  minimum. 

"Mr.  Chairman,  on  the  twelfth  day  of  December,  1911, 
ninety-eight  Democratic  members  of  the  present  House 
joined  with  one  hundred  and  thirty  Republicans  and  one 
Socialist  and  passed  the  Sherwood  Service  Pension  Bill. 
Eighty-four  Democrats  and  only  eight  Republicans  are  recorded 
in  opposition  to  this  bill.  In  the  platform  adopted  at  Baltimore 
I  find  this  plank: 

"  'We  renew  the  declaration  of  our  last  platform  relating 
to  a  generous  pension  policy.' 

"Professor  Wilson,  the  Democratic  candidate  for  President, 
does  not  seem  to  be  in  harmony  with  this  declaration.  In 
a  review  of  the  administration  of  Grover  Cleveland,  whom 
he  eulogizes  to  the  point  of  idolatry,  on  page  180,  volume  5, 
'History  of  the  American  People,'  Professor  Wilson  says: 

"  'What  most  attracted  the  attention  of  the  country,  aside 
from  his  action  in  the  matter  of  appointments  to  office,  was 
the  extraordinary  number  of  his  vetoes.  Most  of  them  were 
uttered  against  pension  bills,  great  and  small.  Both  Demo- 
cratic House  and  Republican  Senate  were  inclined  to  grant 
any  man  or  class  of  men  who  had  served  in  the  Federal 
armies  during  the  Civil  War  the  right  to  be  supported  under 
the  National  Treasury,  and  Mr.  Cleveland  set  himself  reso- 
lutely to  check  their  extravagance.  He  deemed  it  enough  that 
those  that  had  been  actually  disabled  should  receive  pensions 
from  the  Government  and  regarded  additional  gifts  for  mere 
service,  both  an  unjustifiable  use  of  the  public  money  and  a 
gross  abuse  of  charity.' 

"In  view  of  this  remarkable  statement  I  would  like  to  in- 
quire how  many  Republicans  and  Democrats  in  this  House, 
who  voted  for  the  Sherwood  Service  Pension  Bill  or  any 
other  pension  bill,  did  so  on  the  theory  that  any  man  who 
had  ever  served  in  the  Federal  Army  had  an  absolute  'right 
to  be  supported  out  of  the  National  Treasury.'  I  would  like 
to  inquire  of  the  Democrats  who  supported  this  bill  if  they 
agree  with  Professor  Wilson  that  legislation  of  this  kind  is 
an  'unjustifiable  use  of  the  public  money  and  a  gross  abuse 
of  charity.' 

"I  have  said  that  Professor  Wilson  was  not  the  friend  of 
William  Jennings  Bryan,  and  for  a  verification  of  that  state- 
ment I  refer  to  page  2  5  8,  volume  5,  Woodrow  Wilson's  'History 
of  the  American  People,'  and  this  is  what  he  says  about  the 
man  who  used  to  be  your  'peerless'  leader: 

"  'Mr.  Bryan,  though  he  had  been  a  member  of  Congress 
and  had  spoken  in  the  House  upon  the  coinage  question,  had 
made  no  place  of  leadership  for  himself  hitherto,  was  unknown 
to  the  country  at  large  and  even  to  the  great  mass  of  his 
fellow-partisans,'  and  had  come  to  the  convention  with  the 
delegation  from  Nebraska  unheralded,  unremarked.  A  single 
speech  made  from  the  platform  of  the  convention  had  won 
!him  the  nomination,  a  speech  wrought  not  of  argument,  but 
of  fire,  and  uttered  in  the  full  tones  of  a  voice  which  rang  clear 
and  passionate  in  the  authentic  key  of  the  assembly's  own 
mood  of  vehemance  and  revolt.  It  was  a  thing  for  thoughtful 
men  to  note  how  a  mere  stroke  of  telling  declamation  might 
make  an  unknown,  untested  man  the  nominee  of  a  great  party 
for  the  highest  office  in  the  land,  a  popular  assembly  being 
the  instrument  of  choice.' 

"Mr.  Wilson  was  not  the  friend  of  Mr.  Bryan  in  1896,  and 
he  was  not  his  friend  as  late  as  April  29,  19  07,  when  he  wrote 
the   following  letter  from   Princeton: 

"  'My  Dear  Mr.  Joline — Thank  you  very  much  for  sending 
me  your  address  at  Parsons,  Kans.,  before  the  Board  of  Di- 


260  W0ODBOW  WILSON. 

rectors  of  the  Missouri,  Kansas  and  Texas  Railway  Company. 
J  have  read  it  with  relish  and  entire  agreement.  Would  that 
we  could  do  something  at  once  dignified  and  effective,  to 
knock  Mr.  Bryan  once  for  all  into  a  cocked  hat.' 

"In  the  Parsons  speech,  Mr.  Joline,  the  great  trust  and 
corporation   lawyer,   gives   utterance  to   this   sentiment: 

"  'But  I  venture  to  utter  what  is  perhaps  a  feeble  protest 
against  the  blind  and  foolish  outcry  against  all  railways.  You 
and  I  know  who  are  responsible  for  this  socialistic,  populistic 
anti-property  crusade.  It  is  the  cry  of  the  envious  against 
the  well-to-do — the  old  story.  It  is  not  new  to  this  genera- 
tion, only  it  is  louder  and  more  bitter  than  ever  before  in  this 
country.' 

"This  is  what  Woodrow  Wilson  read  'with  relish  and  entire 
agreement.'  This  was  his  honest  opinion,  as  late  as  1907, 
of  Bryan   and   Bryanism. 

"Mr.  Chairman,  I  shall  not  go  much  further  into  the  record 
of  this  anti-Jefferson,  anti-foreign,  anti-labor,  anti-soldier  and 
pro-Chinese  candidate  for  the  presidency.  I  shall  not  speak 
of  his  remarkable  reversal  of  opinion  as  to  the  efficacy  of  the 
initiative  and  referendum  and  the  recall.  Suffice  it  to  say 
that  a  few  years  ago  he  denounced  this  doctrine  as  revolution- 
ary and  as  destructive  of  constitutional  government.  Yet 
to-day  he  loudly  proclaims  it  as  the  one  panacea  for  all  the 
ills  that  afflict  the  body  politic.  I  shall  not  speak  of  his  sneer- 
ing references  to  the  Farmers'  Alliance  and  of  his  characteri- 
zation of  the  Knights  of  Labor  as  being  'tinctured  with  the 
hideous  doctrine  of  anarchy.'  I  believe  that  it  was  Job  who 
said,  'Oh,  that  mine  adversary  had  written  a  book.'  I  would 
say,  'Oh,  that  the  voters  of  this  country  would  read  the  books 
written  by  mine  adversary.'  For  if  the  'History  of  the  Amer- 
ican People,'  that  Woodrow  Wilson  wrote  were  made  a  cam- 
paign document  and  placed  in  the  hands  of  every  man  who 
will  exercise  the  sacred  right  of  franchise  on  the  fifth  day 
of  next  November,  he  would  be  buried  beneath  an  avalanche 
of  votes." 


PROFESSOR    WILSON    ON    PENSIONS    AND    IMMIGRATION. 

"The  other  leading  questions  of  these  years  (1876-1889) 
were  the  granting  of  pensions  and  the  regulation  of  immigra- 
tion. Congress  had  hastened  from  one  lavish  vote  to  another 
in  providing  pensions  for  the  soldiers  who  had  fought  in  the 
Civil  War,  until  at  length  generosity  had  passsed  into  folly. 
President  Cleveland,  for  the  time,  put  a  stop  to  the  reckless 
process  by  a  vigorous  use  of  his  veto  power.  Immigration 
had  long  since  become  a  threat  instead  of  a  source  of  increased 
wealth  and  material  strength,  bringing,  as  it  did,  the  pauper- 
ized and  the  discontented  and  disheartened  of  all  lands,  in- 
stead of  the  hopeful  and  sturdy  classes  of  former  days,  and 
public  opinion  was  becoming  very  restless  about  it.  But 
Congress  did  little  except  act  very  harshly  toward  the  immi- 
grants from  a  single  nation.  By  an  act  of  1888,  the  entrance 
into  the  country  of  Chinese  was  absolutely  cut  off." — From 
nage  227  of  "Division  and  Reunion,  1829-1889,"  by  Woodrow 
Wilson. 


Our  country  is  growing  hotter,  not  worse. — Hon.  C.  W.  Fair- 
banks,  at    Baldwin,    Kims.,   June   7,    13701. 

Great  constructive  national  policies  arc  not  established  by 
simple  declaration  or  mere  legislation  or  in  a  single  day  or  in  a 
single  year.  They  always  change  conditions  in  order  to  better 
them.  They  encounter  inveterate  abuses.  They  are  opposed  and 
evaded  in  practice.  They  require  to  be  applied  and  enforced  by 
a  Strong  hand  and  a  ilmi  will.  They  require  to  be  perfected  by 
administration  and  supplemental  legislation.  Under  Republican 
administrations  there  has  been  one  unbroken,  rontinuous  course 
of  consistent  policy  and  effective  performance  in  dealing  with  the 
evils  which  have  been  naturally  incident  to  the  amazing  industrial 
changes  of  our  generation,  the  vast  creation  of  new  wealth,  the 
increase  of  our  population,  and  the  expansion  of  our  commerce. — 
Senator    Root,   to   Republican   INntionnl   Contention.    1812. 


FOUR  GREAT  FACTS. 


"Four  great  facts  seem  to  justify  the  Republican  Party  in  ask'.ng 
the  voters  of  the  United  States  to  continue  it  in  control  of  the  affairs 
of  the  Government.  First,  the  promptness  with  which  it  has  fulfill',  d 
the  pledges  of  its  platform  upon  which  it  successfully  appealed  to  the 
people  in  1896  ;  second,  the  prosperity  which  has  come  to  all  classes  of 
our  citizens  with,-  and  as  a  result  of,  the  fulfillment  of  those  pledges; 
third,  the  evidence  which  that  prosperity  furnishes  of  the  fallacy  of 
the  principles  oliered  by  the  opposing  parties  in  1896,  and  still  sap- 
ported  by  them;  and,  fourth,  the  advantages  to  our  country,  our  com- 
merce, and  our  people  in  the  extension  of  area,  commerce,  and  inter- 
national influence  which  have  unexpectedly  come  as  an  incident  of  the 
fulfillment  of  one  of  the  important  pledges  of  the  platform  of  1896,  and 
with  it  the  opportunity  for  benefiting  the  people  of  the  territory  affected." 
— From   the   Republican   Campaign   Text-Book  of  1900. 

The  above  quotation  from  the  opening  pages  of  the  Republican 
Campaign  Text-Book  of  1900  applies  with  equal  force  to  con- 
ditions in  the  present  campaign.  The  four  great  facts  which 
justified  the  party  in  asking  the  support  of  the  public  in  1900 
were:  First,  that  its  pledges  of  1896  had  been  redeemed;  second, 
that  prosperity  had  come  as  a  result;  third,  that  developments 
since  1896  had  shown  the  fallacy  of  the  principles  upon  which 
the  Democracy  then  appealed  for  public  support;  and,  fourth, 
the  conditions  which  had  come  to  other  parts  of  the  world  and 
their  people  as  a  result  of  promises  fulfilled  by  the  Republican 
Party  in  the  United  States.  These  assertions  made  in  the  Text- 
Book  of  1900  have  been  fully  justified  by  the  added  experiences 
of  another  twelve  years.  The  pledges  of  1896  and  those  made  in 
1900,  1904  and  1908  have  been  redeemed.  The  protective  tariff 
has  been  restored ;  the  gold  standard  made  permanent ;  Cuba 
freed,  given  independence,  protected  from  internal  troubles  and 
again  made  a  republic ;  the  Panama  Canal  assured  under  the 
sole  ownership  and  control  of  the  United  States;  a  Department 
of  Commerce  and  Labor  established;  rural  free  delivery  given 
to  millions  of  the  agricultural  community ;  the  laws  for  the 
proper  regulation  of  trusts  and  great  corporations  strengthened 
and  enforced;  prosperity  established;  commerce  developed;  labor 
protected  and  given  ample  employment  and  reward.  In  the 
brief  period  since  the  Republican  Party  was,  in  1896,  restored  to 
national  control,  the  wealth  of  the  country  has  doubled,  the 
money  in  circulation  more  than  doubled,  the  exports  more  than 
doubled,  the  value  of  farm  property  more  than  doubled,  the  value 
of  farm  products  nearly  trebled,  the  individual  deposits  in  banks 
more  than  trebled  and  the  exportation  of  manufactures  quad- 
rupled. 

All  of  these  great  accomplishments  have  been  the  work  of  the 
Republican  Party.  In  each  of  them  it  has  met  the  discourage- 
ment, the  opposition,  and  the  hostilities  of  the  Democracy.  The 
protective  tariff  was  fought  at  every  step,  and  denounced  by 
the  platform  of  the  Democrats  as  a  "robbery."  The  act  estab- 
lishing the  gold  standard  was  opposed  and  the  Democratic  vote 
cast  almost  solidly  against  it,  and  that  party  in  its  conventions 
and  platforms  of  1904  and  1908  deliberately  refused  to  retract 
its  advocacy  of  the  free  and  unlimited  coinage  of  silver.  In  the 
war  for  the  freedom  of  Cuba,  the  work  of  the  Republicans  was 
met  with  harsh  criticism.  In  the  efforts  to  establish  peace  and 
good  government  in  the  newly  acquired  territory,  each  step  met 
with  opposition  and  false  charges.  The  acquirement  of  the  right 
to  construct  the  Panama  Canal  was  met  with  opposition  and  ob- 
struction. The  enforcement  of  law  against  trusts  and  other 
great  corporations  was  denounced  as  ineffective  and  designed  to 
deceive  the  public.  The  establishment  of  rural  free  delivery  was 
discouraged.  Th«  splendid  prosperity  which  followed  the  resto- 
ration of  the  protective  tariff  was  decried  and  denounced  as  fic- 
titious and  temporary,  and  an  attempt  made  to  sow  the  seeds  of 
dissatisfaction  and  discord  among  the  people  by  complaints  of  the 
higher  cost  of  food  which  came  as  the  natural  results  of  the 
increased  demand  accompanying  general  prosperity,  high  wages, 
and  increased  currency  based  upon  the  gold  standard. 

It  is  upon  the  evidence  of  the  past  sixteen  years,  evidence 
that  the  Republican  Party  is  a  party  of  progress,  and  tbe 
Democracy  a  party  of  inaction,  retardment,  and  fault-finding. 
that  the  Republican  Party  again  confidently  appeals  for  public 
support  in  tbe  Presidential  and  Congressional   elections  of  1912. 

261 


SPEECH  OF  HON.  ELIHU  ROOT  AS  TEM- 
PORARY CHAIRMAN  OF  THE  REPUB- 
LICAN NATIONAL  CONVENTION  IN 
CHICAGO,  JUNE  18,  1912. 


Gentlemen  of  the  Convention  : 

Believe  that  I  appreciate  this  expression  of  confidence.  I  wish 
I  were  more  competent  for  the  service  you  require  of  me. 

The  struggle  for  leadership  in  the  Republican  Party  which  has 
so  long  engrossed  the  attention  and  excited  the  feelings  of  its 
members  is  about  to  be  determined  by  the  selection  of  a  candidate. 
The  varying  claims  of  opinion  for  recognition  in  the  political 
creed  of  the  party  are  about  to  be  settled  by  the  adoption  of  a 
platform. 

The  supreme  council  of  the  party  in  this  great  National  Con- 
vention, representing  every  State  and  Territory  in  due  propor- 
tion, according  to  rules  long  since  established,  is  about  to  appeal 
to  the  American  people  for  a  continuance  of  the  power  of  govern- 
ment which  the  party  has  exercised  with  but  brief  interruptions 
for  more  than  half  a  century,  and  that  appeal  is  to  be  based 
upon  the  soundness  of  the  principles  approved,  and  the  qualities 
of  the  candidates  selected  by  the  convention. 

In  the  performance  of  this  duty  by  the  convention,  and  in  the  ac- 
ceptance of  its  conclusions  by  Republicans,  is  to  be  applied  the 
ever-recurring  test  of  a  party's  fitness  to  govern,-  its  coherence 
and  its  formative  and  controlling  power  of  organization.  And 
these  depend  upon  the  willingness  of  the  members  of  the  party 
to  subordinate  their  varying  individual  opinions  and  postpone 
the  matters  of  difference  between  them  in  order  that  they  may  act 
in  unison  upon  the  great  questions  wherein  they  agree ;  upon  their 
willingness  and  capacity  to  thrust  aside  the  disappointment  which 
some  of  them  must  always  feel  in  failing  to  secure  success  for 
the  candidate  of  their  preference;  upon  the  loyalty  of  party 
members  to  the  party  itself,  to  the  great  organization  whose 
agency  in  government  they  believe  to  be  for  the  best  interests  of 
the  Nation,  and  for  whose  continuance  in  power  their  love  of 
country  constrains  them  to  labor. 

Without  these  things  there  can  be  no  party  worthy  of  the 
name.  Without  them  party  association  is  a  rope  of  sand,  party 
organization  is  an  ineffective  form,  party  responsibility  disap- 
pears, and  with  it  disappears  the  right  to  public  confidence. 

Without  organized  parties,  baring  these  qualities  of  coherence 
and  loyalty,  free  popular  government  becomes  a,  confused  and 
continual  conflict  between  a  vast  multitude  of  individual  opin- 
ions, individual  interests,  individual  attractions  and  repulsions, 
from  which  effective  government  can  emerge  only  by  answering 
to  the  universal  law  of  necessary  organization  and  again  forming 
parties. 

Throughout  our  party's  history  in  each  presidential  election 
we  have  gone  to  the  American  people  with  the  confident  and 
just  assertion  that  the  Republican  Party  is  not  a  mere  fortuitous 
collection  of  individuals,  but  is  a  coherent  and  living  force  as 
an  organization.  It  is  effective,  responsible,  worthy  of  confi- 
dence, competent  to  govern.  The  traditions  of  its  gre.it  strug- 
gles for  liberty,  for  the  supremacy  of  1m w.  for  tbe  preservation 
of  constitutional  government,  for  national  bonor,  exercise  a  con- 
trolling influence  upon  its  conduct.  The  lofty  purpose  of  its 
great  originators  bus  been  transmitted  by  spiritual  succession 
from  generation  to  generation  of  party  leaders,  and  it  is  no 
idle  rhetoric  when  we  say.  as  wo  have  so  often  said  and  are  about 
to  say  again  to  the  American  people: 

262 


SPEECH  OF  HON.  ELIHU  ROOT.  263 

"We  are  entitled  to  your  belief  in  the  sincerity  of  the  prin- 
ciples we  profess  and  the  loyalty  of  our  candidates  to  those 
principles,  because  we  are  the  party  of  Lincoln,  and  Sumner,  and 
Seward,  and  Andrew,  and  Morton,  and  Grant,  and  Hayes,  and 
Garfield,  and  Arthur,  and  Harrison,  and  Blaine,  and  Hoar,  and 
McKinley." 

We  claim  that  we  are  entitled  to  a  popular  voje  of  confidence 
at  the  coming  election  because  we  have  demonstrated  that  we  are 
the  party  of  affirmative,  constructive  policies  for  the  betterment 
and  progress  of  our  country  in  all  the  fields  upon  which  the 
activity  and  influence  of  government  can  rightly  enter.  We 
claim  it  because  we  have  shown  ourselves  a  party  of  honest, 
efficient,  and  economical  administration  in  which  public  moneys 
are  faithfully  applied,  appointments  are  made  on  grounds  of 
merit,  efficient  service  is  rigorously  exacted,  graft  is  reduced  to  a 
minimum,  derelictions  from  official  duty  are  sternly  punished, 
and  a  high  standard  of  official  morality  is  maintained.  We 
claim  it  because  we  have  maintained  and  promoted  peace  with 
the  world,  and  the  dignity,  honor,  and  just  interests  of  the 
United  States  among  the  nations.  We  claim  it  because  our. 
party  stands  now,  as  it  has  ever  stood,  for  order  and  liberty 
and  for  the  maintenance  of  the  constitutional  system  of  gov- 
ernment through  which  a  self-controlled  democracy  for  more 
than  a  century  has  established  against  all  detractors  the  com- 
petency of  the  American  people  to  govern  themselves  in  law- 
abiding  prosperity. 

We  challenge  the  judgment  of  the  American  people  on  the 
policies  of  McKinley  and  Roosevelt  and  Taft. 

President  Taft,  in  his  speech  of  acceptance  on  the  28th  of  July, 
1908,  paid  a  just  tribute  to  the  great  service  rendered  by  his 
predecessor  in  awakening  the  public  conscience,  inaugurating 
reforms,  and  saving  the  country  from  the  dangers  of  a  plutocratic 
government.  He  instanced  the  Railroad-rate  Law,  the  prevention 
of  railroad  rebates  and  discriminations,  the  enforcement  of  the 
Anti-trust  Law,  the  Pure-food  Law,  the  Meat-inspection  Law,  the 
general  supervision  and  control  of  transportation  companies,  the 
conservation  of  natural  resources,  and  he  proceeded  to  say : 

"The  chief  function  of  the  next  Administration,  in  my  judg- 
ment, is  distinct  from  and  a  progressive  development  of  that  which 
has  been  performed  by  President  Roosevelt.  The  chief  function 
of  the  next  Administration  is  to  complete  and  perfect  the  ma- 
chinery by  which  these  standards  may  be  maintained,  by  which 
the  lawbreakers  may  be  promptly  restrained  and  punished,  but 
which  shall  operate  with  sufficient  accuracy  and  dispatch  to  in- 
terfere with  legitimate  business  as  little  as  possible." 

There  spoke  the  voice  of  two  Republican  Administrations,  and 
the  promise  of  that  declaration  has  been  faithfully  observed  with 
painstaking  and  assiduous  care.  The  Republican  Administration 
which  is  now  drawing  to  a  close  has  engaged  in  completing  and 
perfecting  the  machinery,  in  applying  the  standards  and  working 
out  the  practical  results  of  established  Republican  policies,  in- 
cluding also  the  McKinley  policies  of  a  protective  tariff  and 
sound  finance.  Service  of  this  kind  is  not  spectacular.  It  re- 
ceives little  public  attention  and  little  credit  until  the  public 
mind  is  turned  to  a  careful  study  of  the  subject,  but  it  is  of  the 
highest  importance.  Great  constructive  national  policies  are  not 
established  by  simple  declaration  or  mere  legislation  or  in  a 
single  day  or  in  a  single  year.  They  always  change  conditions 
in  order  to  better  them.  They  encounter  inveterate  abuses.  They 
are  opposed  and  evaded  in  practice.  They  require  to  be  applied 
and  enforced  by  a  strong  hand  and  a  firm  will.  They  require 
to  be  perfected  by  administration  and  supplemental  legislation. 
Under  Republican  Administrations  there  has  been  one  unbroken, 
continuous  course  of  consistent  policy  and  effective  performance 
in  dealing  with  the  evils  which  have  been  naturally  incident  to 
the  amazing  industrial  changes  of  our  generation,  the  vast  cre- 
ation of  new  wealth,  the  increase  of  our  population  and  the  ex- 
ji;ii!sion  of  our  commerce.  It  rests  with  the  American  electorate 
to  say  whether  they  will  permit  those  minor  dissatisfactions 
which  are  inseparable  from  all  human  performance  and  the  de- 
sire for   change   by   which   all   men   are   sometimes   affected,    to 


264  SI'KECH  OF  HON.   ELIHU  ROOT. 

Obscure  in  their  judgments  the  wisdom  of  continuing  the  execu- 
tion of  these  policies  and  the  evil  of  chartering  another  and 
untried  party  for  a  new  departure  in  governmental   experiment. 

The  Republican  party  stands  now,  as  McKinley  stood,  for  a 
protective  tariff,  while  the  Democratic .  party  stands  against  the 
principle  of  protection  and  for  a  tariff  for  revenue  only.  We 
stand  not  for  the  abuses  of  the  tariff,  but  for  the  beneficent  uses. 
No  tariff  can  be  devised  so  moderate,  so  reasonable,  that  it  will 
not  1  e  rejected  by  the  Democratic  Party,  provided  its  duties  be 
adjusted  with  reference  to  labor  cost,  so  as  to  protect  American 
products  against  being  driven  out  of  the  market  by  foreign 
underselling,  made  possible  through  the  lower  rate  of  wages  in 
other  countries.  The  American  foreign  merchant  service  has 
been  driven  off  the  face  of  the  waters  because  with  American 
sailors'  wages  and  the  American  standard  of  living  it  could  not 
compete  with  foreign  shipping.  The  Democratic  Party  proposes 
to  put  American  mills  and  factories  and  mines  in  the  same  posi- 
tion, and  the  American  people  have  now  to  say  whether  they 
wish  that  to  be  done.  I  have  said  that  we  do  not  stand  for  the 
abuses  of  the  tariff.  The  chief  cause  of  abuse  has  been  that  we 
have  outgrown  our  old  method  of  tariff-making.  Our  productive 
industries  have  become  too  vast  and  complicated,  our  commer- 
cial relations  too  extensive,  for  any  committee  of  Congress  of 
itself  to  get  at  the  facts  to  which  the  principle  of  protection 
may  be  properly  applied.  The  Republican  Party  proposes  to 
remedy  this  defective  method  through  having  the  facts  ascer- 
tained by  an  impartial  commission  through  thorough,  scientific 
investigation,  so  that  the  President  and  Congress  shall  have  the 
basis  for  the  just  application  of  the  principle  of  protection. 
The  Republican  Congress  included  in  the  Payne- Aldrich  Bill  a 
clause  under  which  the  President  had  authority  to  appoint  such 
a  board  to  make  such  investigations  and  report  the  results  to 
hi  in.  The  President  appointed  the  board.  Its  members  are  drawn 
from  both  political  parties.  Their  competency,  integrity,  and 
fairness  are  unquestioned.  They  have  reported  upon  the  Woolen 
schedule;  they  have  reported  upon  the  Cotton  schedule.  The 
President  has  transmitted  their  findings  to  Congress.  The  Dem- 
ocratic House  of  Representatives  ignores  and  repudiates  them. 
In  January,  1911,  the  last  Republican  House  of  Representatives 
passed  a  bill  to  create  a  tariff  commission  with  much  broader 
and  more  effective  powers  for  compelling  the  attendance  of  wit- 
nesses and  securing  information,  charged  to  report  its  findings 
to  the  Congress.  The  bill  passed  the  Senate  with  some  amend- 
ment, but  it  was  delayed  there  by  an  avowed  Democratic  fili- 
buster until  it  reached  the  House  so  late  in  the  session  that  a 
vote  upon  it  was  prevented  by  another  Democratic  filibuster  in 
the  House.  Now  the  House  is  Democratic  and  the  Tariff  Com- 
mission bill  is  dead.  The  Democratic  Party  does  not  want  the 
facts  upon  which  a  just  protective  measure  can  be  framed. 
because  they  mean  that  there  shall  be  no  protection  for  Ameri- 
can industries.  In  the  last  session  and  in  the  present  session  of 
Congress  the  Democratic  House  has  framed  and  passed  a  series 
of  tariff  bills  for  revenue  only,  with  complete  indifference  to  the 
absolute  destruction  that  their  enactment  would  bring  upon  great 
American  industries.  Some  of  them  have  fallen  by  the  wayside 
in  the  Senate  and  some  of  them  have  gone  to  the  President  to 
meet  his  wise  and  courageous  veto.  The  American  people  have 
now  to  pass,  not  upon  the  abuses  of  the  tariff,  but  upon  the  fun- 
damental question  between  the  two  systems  of  tariff-making. 

The  national  currency,  which  the  election  of  McKinley  rescued 
from  disaster  at  the  hands  of  a  Free  Silver  Democratcy,  still 
rests  upon  the  Civil  War  basis  of  government  bonds,  and  is  n» 
longer  adapted  to  our  changed  conditions.  It  is  inealstic:  its 
volume  does  not  expand  and  contract  according  to  legitimate 
demands  of  business.  It  subjects  us  to  constant  danger  of 
panics  which  begin  in  speculation  and  end  in  paralyzing  busi- 
ness. It  facilitates  and  promotes  the  arbitrary  control  of  a 
small  group  of  banks  and  bankers  with  enormous  capital,  and 
tenuis  to  an  undue  concentration  of  the  money  of  the  country 
in  a  few  great  money  centers.  Any  possible  remedy  involves 
the  study  of  world-wide  finance,  because  we  are  no  longer  iso- 
lated, and  money  flows  from  city  to  city  and  country  to  country. 


SPKKCH  OF  HON.   ELIHU  ROOT.  265 

in  accordance  with  the  laws  of  demand  and  supply  and  the 
attraction  of  interest  rates.  No  Congress  could,  by  its  ordinary 
methods,  get  beyond  the  surface  of  the  vast  and  complicated 
problem,  yet  the  working  out  of  a  new  system  adapted  to  Ameri- 
can conditions  is  of  vital  importance  to  the  prosperity  of  the 
country  and  the  security  of  every  business  and  of  every  man 
whose  support  is  directly  or  indirectly  dependent  upon  American 
business.  For  the  solution  of  this  question  the  policy  of  the 
Republican  Party  established  a  Monetary  Commission,  which  has 
made  a  most  thorough  and  exhaustive  study  of  the  financial 
systems  of  all  civilized  nations,  of  their  relations  to  our  own 
system,  and  the  needs  of  American  business.  The  commission 
has  reported  a  bill  for  the  establishment  of  a  new  system  of 
reserve  associations  under  which  the  currency  will  be  elastic, 
the  business  of  the  country  will  find  ready  sale  for  its  com- 
mercial paper,  the  people  of  the  country  at  large  will  exercise 
control  instead  of  a  little  group  of  large  bankers,  and  the 
danger  of  panics  will  disappear.  The  President  has  recommended 
the  conclusions  of  the  commission  to  the  Congress,  where  the 
proposed  bill  is  under  consideration.  It  is  for  the  interest  of 
every  business  man  in  the  United  States  that  the  party  controlling 
the  Government  shall  not  be  changed  until  this  policy  has  been 
carried  into  execution. 

In  order  that*  the  burdens  of  government  support  may  in  time 
of  need  be  more  justly  proportioned  to  the  means  of  our  citizens, 
the  last  Republican  Congress  submitted  to  the  legislatures  of  the 
States  an  Income  Tax  Amendment  of  the  Constitution,  and  at 
the  same  time,  upon  the  recommendation  of  the  President,  en- 
acted a  law — which  has  been  sustained  by  the  Supreme  Court- 
imposing  a  tax  upon  corporations,  measured  by  their  income,  30 
that  this  vast  fund  of  invested  capital  may  bear  its  fair  share 
of  the  public  burdens.  At  the  rate  of  only  1  per  cent,  upon  cor- 
porate income,  the  receipts  from  this  source  during  the  past 
year  amounted  to  over  thirty  million  dollars. 

Upon  the  recommendation  of  the  President,  the  powers  of  the 
Interstate  Commerce  Commission  have  been  greatly  enlarged  and 
their  control  over  railroad  rates  and  railroad  service  made  more 
effective.'  Railroad  rebates  have  been  vigorously  prosecuted  and 
the  imposition  of  large  fines  has  substantially  ended  the  prac- 
tice. Upon  prosecutions  of  railroad  discriminations  and  fraudu- 
lent importations  at  the  Custom  House,  under  the  vigorous  treat- 
ment of  the  Treasury  Department  and  the  Department  of  Justice, 
the  fines  and  recoveries  of  the  past  three  years  have  amounted 
to  over  nine  million  dollars. 

The  prosecution  of  trusts  and  combinations  in  violation  of  the 
Sherman  Act  has  proceeded  with  extraordinary  vigor  and  success. 
The  Standard  Oil  Company  has  been  dissolved  by  a  suit  begun 
under  Roosevelt  and  brought  to  a  successful  conclusion  under 
Taft  through  a  judgment  in  exact  accordance  with  the  prayer 
of  the  complainant.  The  Tobacco  Compa»y  has  been  dissolved 
and  its  property  scattered  among  fourteen  different  companies, 
with  stringent  injunctions  against  common  control,  which,  in  the 
unanimous  opinion  of  the  four  judges  of  the  Circuit  Court  of 
Appeals,  were  fully  adequate  to  accomplish  the  relief  demanded. 
The  beef  packers,  the  wholesale  grocers,  the  lumber  dealers,  the 
wire  makers,  the  windowglass  pool,  the  electric  lamp  combina- 
tion, the  bathtub  trust,  the  shoe  machinery  trust,  the  foreign 
steamship  pool,  the  Sugar  Company,  the  Steel  Corporation,  the 
Harvester  Company — all  have  been  made  to  feel  the  heavy  hand 
of  the  law,  through1  suits  or  indictments  against  restraints  and 
monopolies. 

Throughout  that  wide  field  in  which  the  conditions  of  modern 
industrial  life  require  that  government  shall  intervene  in  the 
name  of  social  justice  for  the  protection  of  the  wage-earner, 
the  Republican  National  Administrations,  in  s-ureession,  have  done 
their  full,  enlightened,  and  progressive  duty  to  the  limit  06-the  na- 
tional power  under  the  Constitution.  The  Act  of  March  4,  1907, 
to  regulate  the  hours  of  service  of  railroad  employes,  passed 
under  the  Roosevelt  Administration,  has  been  "sustained  in  the 
Supreme  Court  under  the  Taft  Administration,  and  has  been 
enforced  by  more  than  fifteen  hundred  prosecutions  during  the 
past  three  years.     A  valid  and  effective  Employers'  Liability  Act, 


266  SPEECH  OP  HON.  ELIHU  ROOT. 

applying  to  all  interstate  commerce,  was  passed  by  a  Republi- 
can Congress  on  the  5th  of  April,  1910,  and  under  the  Republican 
Administration  its  constitutionality  has  been  sustained  in  the 
Supreme  Court.  Upon  the  President's  recommendation,  a  joint 
commission  was  created  by  Congress  to  study  the  subject  of 
workmen's  compensation  for  injuries.  It  was  composed  of  mem- 
bers of  both  Houses,  with  a  representative  of  the  railroads  and 
a  representative  of  iabor,  and  after  exhaustive  examination  and 
hearings,  the  commission  framed  a  bill  which  was  approved  by  all 
the  great  railroad  labor  organizations  and  which  was  passed  by  a 
Republican  Senate  at  the  present  session  against  the  opposition 
of  a  majority  of  the  Democratic  Senators.  That  bill  still  slum- 
bers in  the  Democratic  Judiciary  Committee  of  the  House.  The 
Safety  Appliance  Act  has  been  strengthened  by  increased  powers 
in  the  Interstate  Commerce  Commission  and  has  been  enforced 
by  nearly  a  thousand  prosecutions  during  the  past  three  years. 
The  joint  representative  of  the  great  orders  of  Railway  Conduc- 
tors, Railway  Trainmen,  Locomotive  Engineers,  and  Locomotive 
Firemen  and  Enginemen,  says  in  his  report  on  National  Legis- 
lation for  1911,  regarding  that  department  of  the  present  Na- 
tional Administration  especially  concerned  in  the  enforcement 
of  these  laws : 

"Justice  to  one  who  has  been  faithful  to  his  trust  demands 
from  every  representative  of  the  railroad  men  of  the  United 
States  some  recognition  of  the  splendid  work  of  the  Attorney- 
General  in  the  enforcement  of  all  the  acts  of  Congress  relating 
to  the  safety  of  railroad  employes,  and  limiting  their  hours  of 
service.  It  has  been  work  faithfully  and  successfully  performed. 
Both  in  the  defense  of  our  rights  in  the  courts  and  in  assistance 
rendered  us  in  the  preparation  of  proposed  legislation,  his  work 
has  been  of  a  high  order  of  ability  and  has  been  tendered  in  a 
spirit  of  fidelity  to  the  basic  principles  of  fair  play  to  all  men." 

The  newly  created  Bureau  of  Mines  and  the  newly  authorized 
Children's  Bureau  mark  the  limit  to  which  the  National  Gov- 
ernment can  go  toward  improving  the  conditions  of  intrastate 
labor  without  usurping  the  powers  of  the  States.  The  Pure  Food 
Law  has  been  enforced  with  vigor  and  effectiveness.  There  have 
been  over  five  hundred  prosecutions  for  violations  of  that  law 
within  the  past  year  and  more  than  a  thousand  cases  within 
the  past  three  years.  More  than  five  hundred  shipments  of  adul- 
terated and  misbranded  foods  and  drugs  have  been  condemned 
and  forfeited,  and  enormous  quantities  of  injurious  food  material 
have  been  destroyed. 

The  conservation  of  natural  resources  has  been  in  the  hands 
of  its  friends.  The  process  of  examining  and  separating  the  tim- 
ber and  the  agricultural  land  in  the  great  forest  reserves,  estab- 
lished at  the  close  of  the  last  Administration,  has  proceeded  under 
the  present  Administration  in  accordance  with  the  original  plan. 
The  study  of  the  water  resources  of  the  country  and  the  recording 
of  the  flow  of  streams  have  gone  on  under  the  Geological  Sur- 
vey. Classification  and  appraisal  of  coal  lands  and  their  resto- 
ration to  entry  at  discriminating  prices,  based  upon  the  classifi- 
cation, has  been  extended  to  over  sixteen  million  acres  of  a  total 
valuation  of  over  seven  hundred  and  twelve  million  dollars.  The 
enormous  petroleum  deposits  and  phosphate  deposits  and  water- 
power  sites  belonging  to  the  Government  have  been  examined 
and  classified,  and  the  data  prepared  for  the  needed  legislation 
to  regulate  their  disposition.  Construction  under  the  arid  land 
reclamation  projects  has  been  pressed  forward,  and  over  fifty 
thousand  people  are  now  living  upon  the  reclaimed  land. 

Great  reforms  have  been  made  in  the  economy  of  the  public 
service.  A  commission  appointed  by  the  President  has  been  ex- 
amining all  the  departments  of  government  operating  under  the 
antiquated  statutes  passed  generations  ago,  with  a  view  to  apply- 
ing in  them  the  labor-saving  and  money-saving  methods  which 
have  made  the  success  of  the  great  busiiress  establishments  of 
our  country.  In  the  Treausry  Department  alone,  where  the  reforms 
first  received  their  effect  and  can  best  be  measured,  over  eighteen 
hundred  places  have  been  abolished,  and  this  with  increased  effi- 
ciency of  service,  and  without  discharging  any  one.  but  simply 
by  not  filling  vacancies  as  they  occurred.  The  savings  effected 
in  the  administration  of  this  one  department   amount   approxi- 


SPEECH  OF  HON.   ELIHU  ROOT.  267 

mately  to  $2,631,000  per  annum.  The  same  policy  in  the  Post 
Office  Department  lias  made  that  department  self-supporting  for 
the  first  time  in  thirty  years,  and  has  changed  a  deficit  of  $17,- 
479,770.47  in  1900,  caused  especially  by  the  increased  cost  of 
rural  free  delivery,  to  a  surplus  of  $219,118.12  in  1911.  In  the 
meantime  the  great  Republican  policy  of  rural  free  delivery  has 
been  advanced  so  that  the  rural  free  delivery  routes  now  number 
42,199,  covering  a  mileage  of  1,210,447  miles.  In  the  meantime 
also  the  new  Republican  policy  of  the  postal  savings  system  has 
been  successfully  inaugurated  under  the  Act  of  June  25,  1910, 
beginning  experimentally  with  a  few  offices,  and  now,  after  eleven 
months  of  operation  extending  to  7500  Presidential  post  offices 
and  $11,000,000  of  deposits.  The  Army  has  been  made  more 
efficient.  The  great  process  of  training  not  only  the  regular  army, 
but  the  militia,  by  means  of  officers  of  instruction  and  joint 
operations,  has  been  pressed  forward  to  the  end  that  if  war  un- 
fortunately comes  upon  us  we  shall  have,  for  the  first  time  in  our 
history,  a  great  body  of  trained  American  citizens  competent  to  act 
as  officers  of  the  volunteer  force  upon  which  we  must  so  largely 
depend  for  our  military  defense.  The  test  of  mobilization  of  the 
regular  army  in  Texas,  during  the  summer  of  1911,  with  its 
rapidity  of  movement  and  freedom  from  disease,  has  exhibited 
a  record  of  competency  and  ability  most  reassuring  and  satisfac- 
tory. 

The  Navy  has  improved  its  organization  and  decreased  its  ex- 
penses, has  increased  its  preparedness  and  military  efficiency,  has 
improved  its  marksmanship  and  skill  in  seamanship  and  evolu- 
tion, and  has  reorganized  and  reduced  the  cost  of  the  system  of 
construction,  repair  and  supply. 

The  execution  of  the  regular  and  established  program  of 
adding  two  battleships  to  the  fleet  annually  to  take  the  place  of 
the  old  ships  which  from  year  to  year  grow  obsolete,  and  to 
maintain  the  position  of  our  Navy  among  those  of  the  great  pow- 
ers, has  met  with  a  reverse  in  the  refusal  of  the  Democratic  House 
of  Representatives  to  appropriate  any  money  for  the  construc- 
tion of  battleships,  and  the  question  now  stands  between  the  Re- 
publican Senate  and  the  Democratic  House  as  to  whether  our 
Navy  shall  be  maintained  or  shall  be  permitted  to  fall  back  to  a 
level  with  the  weaker  and  unconsidered  countries  of  the  world. 
What  is  the  will  of  the  American  people  on  that  question? 

The  construction  of  the  Panama  Canal  has  been  pressed  for- 
ward with  renewed  evidences  under  the  concentrated  observa- 
tion of  all  the  civilized  world,  that  America  possesses  constructive 
genius,  organizing  power  and  habits  of  honest  administration 
equal  to  the  greatest  undertakings.  It  is  manifest  now  that  the 
work  will  be  done  in  advance  of  the  time  fixed  and  within  the 
cost  estimated,  and  that  during  the  coming  year  it  will  be  sub- 
stantially completed.  Will  not  the  American  people  consider 
whether  they  have  no  grateful  appreciation  of  the  honor  brought 
to  us  all  by  the  great  thing  that  has  been  done  on  the  Isthmus? 
When  the  wonderful  procession  of  ships  takes  its  way  for  the 
first  time  through  the  canal  between  the  waters  of  the  Atlantic 
and  the  Pacific,  will  the  people  of  America  wish  that  the  honors 
of  that  greater  than  a  Roman  triumph  be  given,  not  to  the  men 
who  executed  the  great  design,  but  to  the  men  who  opposed  and 
scoffed  and  hindered  and  sought  to  frustrate  the  enterprise,  until, 
in  spite  of  them,  its  success  was  assured? 

In  our  foreign  relations  controversies  of  almost  a  hundred 
years  over  the  Northeastern  fisheries  have  been  settled  by  arbi- 
tration at  The  Hague.  The  attempt  to  preserve  the  fur-seal  life 
of  the  Alaskan  islands,  in  which  we  were  defeated  twenty  years 
ago  in  the  Behring  Sea  arbitration,  has  been  brought  to  success 
by  diplomacy  in  the  Fur-Seal,  treaty  with  Great  Britain,  Japan, 
and  Russia.  The  delicate  questions  arising  from  the  termination 
of  our  treaty  regulating  trade  and  travel  with  Japan  have  been 
disposed  of  by  a  new  treaty  satisfactory  to  both  nations  and  to 
the  people  of  both  coasts  of  our  own  nation.  Onr  tariff  relations 
with  all  the  world  under  the  Maximum  and  Minimum  clause  of 
the  Payne-Aldrich  Bill  have  been  readjusted.  The  Departments 
of  State  and  Commerce  and  Labor  have  promoted  the  extension 
of  American  commerce  so  that  our  foreign  exports  have  grown 
from  $1,491,744,641,  in  1905,   to  $2,013,549,025,   in  1911,   and  the 


268     -  SPEECH  OF  HON.   ELIHU  ROOT. 

balance  of  trade  in  onr  favor  for  1911  was  $522,094,094.  Ameri- 
can rights  have  been  asserted  and  maintained  and  peace  with  all 
the  world  lias  been  preserved  and  strengthened. 

With  this  record  of  consistent  policy  and  faithful  service  the 
Republican  Parly  ean  rest  with  confidence  on  its  title  to  com- 
mand the  approval  of  the  American  people.  We  have  a  right 
to  say  that  we  can  be  trusted  to  preserve  and  maintain  the 
American  system  of  free  representative  government  handed  down 
to  us  by  our  fathers.  At  our  hands  it  will  be  no  empty  form 
wben  the  officers  of  the  National  Government  subscribe  the  sol- 
emn oath  required  of  them  by  law,  "That  I  wili  support  and  de- 
fend the  Constitution  of  the  United  States  against  all  enemies, 
foreign  and  domestic ;  that  I  will  bear  true  faith  and  allegiance 
to  the  same."  We  shall  not  apologize  for  American  institutions. 
We  cherish  with  gratitude  and  reverence  the  memory  of  the 
great  men  who  devised  the  American  constitutional  system— their 
unselfish  patriotism,  their  love  of  liberty  and  justice,  their  lofty 
conception  of  human  rights,  their  deep  insight  into  the  strength 
and  weakness  of  human  nature,  their  wise  avoidance  of  the 
dangers  which  had  wrecked  all  preceding  attempts  at  popular 
government,  their  breadth  of  view,  which  adapted  the  system 
they  devised  to  the  progress  and  development  of  a  great  people. 
We  will  be  loyal  to  the  principles  they  declared  and  to  the  spirit 
of  liberty  and  progress,  of  justice  and  security,  which  they 
breathed  into  that  immortal  instrument. 

No  government  which  must  be  administered  by  weak  and  fal- 
lible men  can  be  perfect,  but  we  may  justly  claim  for  our  Govern- 
ment under  the  Constitution  that  for  a  century  and  a  quarter 
it  has  worked  out  the  best  results  for  individual  liberty  and 
progress  in  civilization  yet  achieved  by  governmental  institutions. 
Under  the  peace  and  security  which  it  afforded,  not  only  has  our 
country  become  vastly  rich,  but  there  has  been  a  diffusion  of 
wealth  which  should  inspire  cheerful  confidence  in  the  future. 
Witness  the  9,597,185  separate  savings  bank  accounts,  with  $4,- 
212,583,598  deposits  in  the  year  1911.  Witness  the  6,361,502  farms 
and  the  value  of  farms  and  farm  property  of  $40,991,449,090  in 
the  year  1910,  a  value  more  than  doubled  between  1900  and 
1910.  Witness  the  stream  of  immigrants  pouring  in  from  all 
countries  of  the  earth  to  share  the  happier  lot  of  labor  in  our 
fortunate  land — 9,673,973  of  them  since  1901.  Nowhere  on  earth 
is  there  such  unfettered  scope  for  the  independence  of  individual 
manhood;  nowhere  greater  security  and  competency  for  the  fam- 
ily home;  nowhere  more  universal  advantages  of  education  f®r 
rich  and  poor  alike;  nowhere  such  universal  response  to  all  de- 
mands of  charity  and  noble  plans  for  relieving  the  distress  and 
improving  the  condition  of  mankind ;  nowhere  a  more  ready 
quickening  of  public  spirit  under  the  influence  of  high  ideals ; 
nowhere  the  true  ends  of  government  more  fully  secured,  than  in 
the  life  of  America  to-day  under  the  government  of  the  Con- 
stitution. 

We  will  maintain  the  power  and  honor  of  the  Nation,  but 
we  will  observe  those  limitations  which  the  Constitution  sets  up 
for  the  preservation  of  local  self-government.  This  country  is  so 
large,  and  the  conditions  of  life  are  so  varied,  that  it  would  be 
intolerable  to  have  the  local  and  domestic  affairs  of  our  home 
communities,  which  involve  no  national  rights,  control  ted  by 
majorities  made  up  in  other  States  thousands  of  miles  away 
or  by  the  officials  of  a  central  government. 

We  will  perform  the  duties  and  exercise  the  authority  of  the 
offices  with  which  we  may  be  invested,  but  we  will  observe  and 
require  all  officials  to  observe  those  constitutional  limitations 
which  prescribe  the  boundaries  of  official  power.  However  wise, 
however  able,  however  patriotic  a  Qongress  or  an  Executive  may 
be.  however  convinced  they  may  be  that  the  doing  of  a  particular 
thing  would  be  beneficial  to  the  public — if  that  tiling  is  done 
by  usurping  the  powers  confided  to  another  department  or  an- 
other officer,  it  but  opens  the  door  for  the  destruction  of  liberty. 
The  door  opened  for  the  patriotic  and  well  meaning  to  exercise 
po-.ver  not  conferred  upon  them  by  law  is  the  door  opened  also 
to  the  self-seeking  and  ambitious.  There  can  be  no  free  govern- 
ment; In  which  official  power  is  not  limited,  and  tbe  limitations 
upon  official  power  can  be  preserved  only  by  rigorously  insisting 
upon  their  observance. 


SPEECH  OF  HON.   ELIHU  ROOT.  269 

We  will  make  and  vigorously  enforce  laws  for  the  promotion 
of  public  interests  and  the  attainment  of  public  ends,  but  we 
will  QbsefVe  those  great  rules  of  right  conduct  which  our  fathers 
embodied  in  the  limitations  of  the  Constitution.  We  will  hold 
sacred  the  dechi  rat  ions  and  prohibitions  of  the  Bill  of  Rights, 
which  protect  the  life  and  liberty  and  property  of  the  citizen 
against  the  power  of  government.  We  will  keep  the  covenant 
that  our  fathers  made,  and  that  we  have  reaffirmed  fr»m  gen- 
eration to  generation,  between  the  whole  body  of  the  people  and 
every  individual  under  national  jurisdiction.  It  is  a  covenant 
between  overwhelming  power  and  every  weak  and  defenceless 
one.  every  one  who  relies  upon  the  protection  of  his  country's 
laws  for  security  to  enjoy  the  fruits  of  industry  and  thrift,  every 
one  who  would  worship  God  according  to  his  conscience,  how- 
ever his  faith  may  differ  from  that  of  fellows,  every  one  who 
asserts  his  manhood's  right  of  freedom  in  speech  and  action — 
a  solemn  covenant  that  between  the  weak  individual  and  all  the 
power  of  the  people  and  the  people's  officers  shall  forever  stand 
the  eternal  principles  of  justice  declared,  defined,  and  made  prac- 
tically effective  by  specific  rules  in  those  provisions  which  we 
call  the  limitations  of  the  Constitution.  That  covenant  between 
power  and  weakness  is  the  chief  basis  of  American  prosperity, 
American  progress,  and  American  liberty.  It  is  because  we  have 
always  observed  it  that  we  are  not  torn  by  dissension  and  revo- 
lution and  civil  war  and  alternating  anarchy  and  despotism  like 
so  many  of  our  sister  republics,  whose  unhappy  fortune  we  de- 
plore. With  all  our  pride  in  our  vast  material  prosperity,  in 
our  successful  institutions  and  our  advance  in  civilization,  we 
would  not  be  boastful  and  vainglorious,  for  we  come  of  God- 
fearing people,  and  we  have  learned  the  truth  taught  by  religion, 
that  all  men  are  prone  to  error,  are  subject  to  temptation,  are 
led  astray  by  impulse.  We  know  that  this  is  as  true  in  govern- 
ment as  it  is  in  private  life,  for  the  freedom  that  some  of  our 
fathers  sought  was  freedom  of  conscience  from  the  control  of 
majorities;  and  our  party  was  born  in  protest  against  the  ex- 
tension of  a  system  of  human  slavery  approved  and  maintained 
by  majorities.  We  know  that  there  is  no  safe  course  in  the  life 
of  men  or  of  nations  except  to  establish  and  to  follow  declared 
principles  of  conduct.  There  is  a  divine  principle  of  justice 
which  men  cannot  make  or  unmake,  which  is  above  all' govern- 
ments, above  all  legislatures,  above  all  majorities.  Conformity 
to  it  is  a  condition  of  national  life.  The  American  people  have 
set  up  this  eternal  law  of  justice  as  the  guide  for  their  national 
action.  They  have  formulated  and  expressed  it  in  practical 
rules  of  conduct  established  by  them  impersonally,  abstractly, 
when  no  interest  or  impulse  or  specific  desire  was  present  to  sway 
their  judgment.  Upon  submission  and  conformity  to  these  rules 
of  justice  depends  our  existence  as  a  nation,  and,  as  we  love  our 
country  and  hope  for  the  continuance  of  its  peace  and  liberty  to 
our  children's  children,  we  should  humbly  and  reverently  seek 
for  strength  and  wisdom  to  abide  by  the  principles  of  the  Con- 
stitution against  the  days  of  our  temptation  and  weakness. 

With  a  deep  sense  of  dwty  to  so  order  our  country's  govern- 
ment that  the  blessings  which  God  has  vouchsafed  to  us  may  be 
continued,  we  can  be  trusted  to  keep  the  pledge  given  to  the 
American  people  by  the  last  Republican  National  Convention: 

"The  Republican  Party  will  uphold  at  all  times  the  authority 
and  integrity  of  the  courts,  state  and  federal,  and  will  ever 
insist  that  their  powers  to  enforce  their  process  and  to  protect  life, 
liberty  and  property  shall  be  preserved  inviolate." 

We  must  be  true  to  that  pledge,  for  in  no  other  way  can  our 
country  keep  itself  within  the  straight  and  narrow  paMi  pre- 
scribed by  the  principles  of  right  conduct  embodied  in  our  Con- 
stitution. 

The  limitations  upon  arbitrary  power,  and  the  prohibitions 
of  the  Bill  of  Rights  which  protect  liberty  and  insure  justice 
cannot  be  enforced  except  through  the  determinations  of  an  inde- 
pendent and  courageous  judiciary. 

We  shall  be  true  to  that  Republican  pledge.  The  great  courts 
in  which  Marshall,  and  Story,  and  Harlan  sat  will  not  be  de- 
graded from  their  high  office.  Their  judges  will  not  be  pun- 
ished for  honest  decisions;  their  judgments  will  be  respected  and 


270  SPEECH  OF  HON.  ELIHU  ROOT. 

obeyed.  The  keystone  of  this  balanced  and  stable  structure  of 
government,  established  by  our  fathers,  will  not  be  shattered  by 
Republican  hands;  for  we  stand  with  Alexander  Hamilton,  who 
said,  in  the  Federalist: 

"For  I  agree  that  there  is  no  liberty  where  the  power  of 
judging  be  not  separate  from  the  legislative  and  executive  powers." 

We  stand  with  John  Marshall,  who  said,  in  Marbury  V8.  Madi- 
son: 

"To  what  purpose  are  powers  limited,  and  to  what  purpose 
is  that  limitation  committed  to  writing,  if  these  limitations  may, 
at  any  time,  be  passed  by  those  intended  to  be  restrained?" 

And  we  stand  with  Abraham  Lincoln,  who  said,  in  his  first 
inaugural : 

"A  majority  held  in  restraint  by  constitutional  checks  and 
limitations  and  always  changing  easily  with  deliberate  changes 
of  popular  opinion  and  sentiment  is  the  only  true  sovereign  of  a 
free  people.  Whoever  rejects  it  does  of  necessity  fly  to  anarchy 
or  despotism." 


The  American  system  of  locating  manufactories  next  to  the 
plow  and  the  pasture  has  produced  a  result  noticeable  by  the 
intelligent   portion    of   all    commercial    nations. — Grant. 

We  do  well  to  give  the  sanction  of  the  Federal  law  to  the  prin- 
ciple of  arbitration.  We  should  encourage  a  spirit  of  concord 
and  mutual  respect  between  employer  and  employe,  between  the 
common  carriers  of  interstate  commerce  and  their  employes. — Hon. 
C.  W.  Fairbanks,  in  U«ited  States   Senate,  May  12,  1SUS. 

It  is  greatly  in  the  interest  of  the  workingman,  therefore-,  that 
corporate  capital  should  be  fairly  treated.  Any  injustice  done  to 
It  acts  directly  upon  the  wage-earners,  who  must  look  to  corporate 
wealth  for  their  employment. — Hon.  Wm.  H.  Taft,  at  Cooper  Union, 
New    York    City. 

The  effect  of  the  organization  of  labor,  on  the  whole,  has  been 
highly  beneficial  In  securing  better  terms  of  employment  for  the 
whole  laboring  community.  .1  have  not  the  slightest  doubt,  and 
no  one  who  knows  anything  about  the  subject  can  doubt,  that  the 
existence  of  labor  unions  steadies  wages. — Hon.  Wm.  H.  Taft,  at 
Cooper  Union,  New  York  City. 

I  have  examined  this  proposed  method  of  reversing  judicial  de- 
cisions on  constitutional  questions  with  care.  1  do  not  hesitate  to 
say  that  it  lays  the  axe  at  the  foot  of  the  tree  of  well-ordered 
freedom  and  subjects  the  guaranties  of  life,  liberty  and  property 
without  remedy  to  the  fitful  impulse  of  a  temporary  majority  of 
an  electorate. — President  Taft,  at  Toledo. 

The  first  fruits  of  the  Oklahoma  so-called  bank  guaranty  plan 
have  been  gathered.  A  bank  at  Oklahoma  City  failed,  and  yester- 
day the  State  officials  took  charge  of  the  institution  and  began 
paying  off  the  depositors  with  money  collected  from  the  other 
banks  in  the  tSate.  According  to  the  authoritative  declaration  of 
the  secretary  of  the  State  Banking  Board,  the  bank's  capital  was 
"so  impaired  that  on  liquidation  the  stockholders  may  realize  but 
little;  also  the  bank  has  loaned  far  too  great  a  proportion  of  its 
funds,  and  its  supply  of  cash  unreplenished  is  inadequate  to  meet 
the  requirements  of  the  law."  That  is  to  say,  unsafe  banking 
methods  brought  about  the  failure  of  the  institution,  and  the 
anouncement  is  made  that  the  retirement  of  most  of  the  officials 
connected  with  it  is  probable.  There  is  no  charge  of  dishonesty. 
But  the  solvent  and  safely  conducted  banks  are  compelled  to  pay 
for  the  failure  of  the  bank  not  conducted  in  accordance  with  the 
requirements  of  law  and  the  dictates  of  sound  banking.  Honesty 
and  safety  and  good  business  judgment  are  penalized  to  rectify 
the  mistakes  of  the  failed  bank's  officials. — Kansas  City  "Journal." 

I  has  been  the  long-established  view,  at  least  in  this  Republic, 
that  for  stability,  safety  to  all  rights  and  for  permanency,  there 
must  be  a  system,  carefully  and  deliberately  framed,  not  by  the 
people  directly,  but  by  their  chosen  delegates  specially  qualified 
for  the  task;  that  under  a  Constitution  so  framed,  laws  must  be 
passed,  not  by  the  people  directly,  but  by  their  chosen  representa- 
tives, presumably  qualified  for  the  work;  that  the  execution  of 
laws  and  administration  of  the  functions  of  government  must  be 
entrusted  to  men  chosen  by  the  people  for  their  capacity  and 
fitness;  that  in  the  case  of  misunderstanding  or  dispute  in  regard 
to  the  exercise  of  powers  or  performance  of  duties,  there  must 
be  a  specially  qualified  and  trained  body  of  judges  to  interpret 
and  apply  laws  and  constitutions  and  determine  the  true  course. 
Finally,  if  defects  appear  in  the  working  of  the  system,  the 
people  shall  have  power,  in  a  prescribed  and  orderly  way,  by 
ChQOSlng  delegates  and  representatives,  to  amend  constitutions, 
to  improve  legislation,  to  secure  the  performance  of  administrative 
and  judicial  duties  more  in  conformity  to  their  will,  and  thus  to 
correct  these  defects. — Mew   York  "Journal  of  Commerce." 


REPUBLICAN  PLATFORM— 1912. 


The  Republican  Party,  assembled  by  its  representatives  in 
National  Convention,  declares  its  unchanging-  faith  in  govern- 
ment of  the  people,  by  the  people,  for  the  people.  We  renew 
our  allegiance  to  the  principles  of  the  Republican  Party  and 
our  devotion  to  the  cause  of  Republican  institutions  established 
by  the  fathers. 

It  is  appropriate  that  we  should  now  recall  with  a  sense  of 
veneration  and  gratitude  the  name  of  our  first  great  leader,  who 
was  nominated  in  this  city  and  whose  lofty  principles  and  superb 
devotion  to  his  country  are  an  inspiration  to  the  party  he  hon- 
ored— Abraham  Lincoln.  In  the  present  state  of  public  affairs 
we  should  be  inspired  by  his  broad  statesmanship  and  by  his 
tolerant  spirit  toward  men. 

The  Republican  Party  looks  back  upon  its  record  with  pride 
and  satisfaction,  and  forward  to  its  new  responsibilities  with 
hope  and  confidence.  Its  achievements  in  government  consti- 
tute the  most  luminous  pages  in  our  history.  Our  greatest 
national  advance  has  been  made  during  the  years  of  its  ascend- 
ency in  public  affairs.  It  has  been  genuinely  and  always  a  party 
of  progress ;  it  has  never  been  either  stationary  or  reactionary. 
It  has  gone  from  the  fulfillment  of  one  great  pledge  to  the  ful- 
fillment of  another  in  response  to  the  public  need  and  to  the 
popular  will. 

We  believe  in  our  self-controlled  representative  democracy, 
which  is  a  government  of  laws,  not  of  men,  and  in  which  order 
is  the  pre-requisite  of  progress. 

The  principles  of  constitutional  government  which  make  pro- 
vision for  orderly  and  effective  expression  of  the  popular  will, 
for  the  protection  of  civil  liberty  and  the  rights  of  men,  and  for 
the  interpretation  of  the  law  by  an  untrammelled  and  inde- 
pendent judiciary,  have  proved  themselves  capable  of  sustaining 
the  structure  of  a  government  which,  after  more  than  a  century 
of  development,  embraces  one  hundred  millions  of  people,  scat- 
tered over  a  wide  and  diverse  territory,  but  bound  by  common 
purpose,  common  ideals  and  common  affection  to  the  Constitu- 
tion of  the  United  States.  Under  the  Constitution  and  the  prin- 
ciples asserted  and  vitalized  by  it,  the  United  States  has  grown 
to  be  one  of  the  great  civilized  and  civilizing  powers  of  the 
earth.  It  offers  a  home  and  an  opportunity  to  the  ambitious 
and  the  industrious  from  other  lands.  Resting  upon  the  broad 
basis  of  a  people's  confidence  and  a  people's  support,  and  man- 
aged by  the  people  themselves,  the  Government  of  the  United 
States  will  meet  the  problems  of  the  future  as  satisfactorily  as 
it  has  solved  those  of  the  past. 

Proposed  Legislation. 

The  Republican  Party  is  now,  as  always,  a  party  of  advanced 
and  constructive  statesmanship.  It  is  prepared  to  go  forward 
with  the  solution  of  these  new  questions  which  social,  economic 
and  political  development  have  brought  into  the  forefront  of 
the  nation's  interest.  It  will  strive,  not  only  in  the  nation,  but 
in  the  several  States,  to  enact  the  necessary  legislation  to  safe- 
guard the  public  health,  to  limit  effectively  the  labor  of  women 
and  children,  to  protect  wage-earners  engaged  in  dangerous  oc- 
cupations, to  enact  comprehensive  and  generous  workmen's  com- 
pensation laws  in  place  of  the  present  wasteful  and  unjust 
system  of  employers'  liability,  and  in  all  possible  ways  satisfy 
the  just  demand  of  the  people  for  the  study  and  solution  of  the 
complex    and   constantly   changing    problems   of   social   welfare. 

271 


272  REPUBLICAN  PLATFORM— 1912. 

In  dealing  with  these  questions  it  is  important  that  the  rights 
of  every  individual  to  the  freest  possible  development  of  his  own 
powers  and  resources,  and  to  the  control  of  his  own  justly  ac- 
quired property,  so  far  as  those  are  compatible  with  the  rights 
of  others,  shall  not  be  interfered  with  or  destroyed.  The  social 
and  political  structure  of  the  United  States  rests  upon  the  civil 
liberty  of  the  individual,  and  for  the  protection  of  that  liberty 
the  people  have  wisely,  in  the  National  and  State  Constitutions, 
put  definite  limitations  upon  themselves  and  upon  their  govern- 
mental officers  and  agencies.  To  enforce  these  limitations,  to 
secure  the  orderly  and  coherent  exercise  of  governmental  pow- 
ers and  to  protect  the  rights  of  even  the  humblest  and  least 
favored  individual,  are  the  functions  of  the  independent  courts  of 
justice. 

To    Uphold    Courts. 

The  Eepublican  Party  reaffirms  its  intention  to  uphold  at  all 
times  the  authority  and  integrity  of  the  courts,  both  State  and 
Federal,  and  it  will  ever  insist  that  their  powers  to  enforce  their 
process  and  to  protect  life,  liberty  and  property  shall  be  pre- 
served inviolate.  An  orderly  method  is  provided  under  our  sys- 
tem of  government  by  which  the  people  may,  when  they  choose, 
alter  or  amend  the  constitutional  provisions  which  underlie  that 
government.  Until  these  constitutional  provisions  are  so  altered 
or  amended,  in  orderly  fashion,  it  is  the  duty  of  the  courts  to 
see  to  it  that  when   challenged  they  are  enforced. 

That  the  courts,  both  Federal  and  State,  may  bear  the  heavy 
burden  laid  upon  them  to  the  complete  satisfaction  of  public 
opinion,  we  favor  legislation  to  prevent  long  delays  and  the 
tedious  and  costly  appeals  which  have  so  oiten  amounted  to  a 
denial  of  justice  in  civil  cases,  and  to  a  failure  to  protect  the 
public  at  large  in  criminal  cases. 

Since  the  responsibility  of  the  judiciary  is  so  great,  the 
standards  of  judicial  action  must  be  always  and  everywhere 
above  suspicion  and  reproach.  While  we  regard  the  recall  of 
judges  as  unnecessary  and  unwise,  we  favor  such  action  as  may 
be  necessary  to  simplify  the  process  by  which  any  judge  who  is 
found  to  be  derelict  in  his  duty  may  be  removed  from  office. 

Together  with  peaceful  and  orderly  development  at  home,  the 
Republican  Party  earnestly  favors  all  measures  for  the  estab- 
lishment and  protection  of  the  peace  of  the  world,  and  for  the 
development  of  closer  relations  between  the  various  nations  of 
the  earth.  It  believes  most  earnestly  in  the  peaceful  settlement 
of  international  disputes  and  in  the  reference  of  all  justifiable 
controversies  between  nations  to  an  international  court  of  jus- 
tice. 

Monopoly  and  Privilege. 

The  Republican  Party  is  opposed  to  special  privilege  and 
monopoly.  It  placed  upon  the  statute  books  the  Interstate  Com- 
merce Act  of  1887,  and  the  important  amendments  thereto,  and 
the  Anti-Trust  Act  of  1890,  and  it  has  consistently  and  success- 
fully enforced  the  provisions  of  these  laws.  It  will  take  no 
backward  step  to  permit  the  re-establishment  in  any  degree  of 
conditions  which  were  intolerable. 

Experience  makes  it  plain  that  the  business  of  the  country 
may  be  carried  on  without  fear  or  without  disturbance,  and  at 
the  same  time  without  resort  to  practices  which  are  abhorrent 
to  the  common  sense  of  justice.  The  Republican  Party  favors 
the  enactment  of  legislation  supplementary  to  the  existing  Anti- 
Trust  Act  which  will  define  as  criminal  offences  those  specific 
acts  that,  uniformly  mark  attempts  to  restrain  and  to  monopolize 
trade,  to  the  end  that  those  who  honestly  intend  to  obey  the  law 
may  have  a  gnide  for  their  action  and  that  those  who  aim  to 
violate  the  law  may  the  more  surely  be  punished.  The  same 
certaiaty  should  be  given  to  the  lavs  prohibiting1  combinations 
and  monopolies  that  characteuizes  other  provisions  of  commer- 
cial law,  in  order  that  no  part  of  the  field  of  business  opportu- 
nity may  be  restricted  by  monopoly  or  combination  ;  that  business 


REPUBLICAN  PLATFORM— 1912.  273 

success  honorably  achieved  may  not  be  converted  into  crime, 
and  that  the  right  of  every  man  to  acquire  commodities,  and 
particularly  the  necessaries  of  life,  in  an  open  market  unin- 
fluenced by  the  manipulation  of  trust  or  combination  may  be 
preserved. 

Federal    Trade    Commission. 

In  the  enforcement  and  administration  of  Federal  laws  gov- 
erning' interstate  commerce  and  enterprises  impressed  with  a 
public  use  engaged  therein,  there  is  much  that  may  be  com- 
mitted to  a  federal  trade  commission,  thus  placing  in  the  hands 
of  an  administrative  board  many  erf  the  functions  now  neces- 
sarily exercised  by  the  courts.  This  will  promote  promptness 
in  the  administration  of  the  law  and  avoid  delays  and  technicali- 
ties incident  to  court  procedure. 

The   Tariff. 

We  reaffirm  our  belief  in  a  protective  tariff.  The  Republican 
tariff  policy  has  been  of  the  greatest  benefit  to  the  country, 
developing  our  resources,  diversifying  our  industries  and  pro- 
tecting our  workmen  against  competition  with  cheaper  labor 
abroad,  thus  establishing  for  our  wage-earners  tke  American 
standard  of  living.  The  protective  tariff  is  so  woven  into  the 
fabric  of  our  industrial  and  agricultural  life  that  to  substitute 
for  it  a  tariff  for  revenue  only  would  destroy  many  industries 
and  throw  millions  of  our  people  out  of  employment.  The 
products  of  the  farm  and  of  the  mine  should  receive  the  same 
measure  of  protection  as  other  products  of  American  labor. 

We  hold  that  the  import  duties  should  be  high  enough  while 
yielding  a  sufficient  revenue  to  protect  adequately  American  in- 
dustries and  wages.  Some  of  the  existing  import  duties  are  too 
high,  and  should  be  reduced.  Readjustment  should  be  made" 
from  time  to  time  to  conform  to  changed  conditions  and  to  re- 
duce excessive  rates,  but  without  injury  to  any  American  in- 
dustry. To  accomplish  this  correct  information  is  indispensable. 
This  information  can  best  be  obtained  by  an  expert  commission, 
as  the  large  volume  of  useful  facts  contained  in  the  recent  reports 
of  the  tariff  board  has  demonstrated  the  pronounced  feature  of 
modern  industrial  life  is  its  enormous  diversifications.  To  apply 
tariff  rates  justly  to  these  changing  conditions  requires  closer 
study  and  more  scientific  methods  than  ever  before.  The  Re- 
publican Party  has  shown  by  its  creation  of  a  tariff  board  its 
recognition  of  this  situation  and  its  determination  to  be  equal 
to  it.  We  condemn  the  Democratic  Party  for  its  failure  either 
to  provide  funds  for  the  continuance  of  this  board  or  to  make 
some  other  provision  for  securing  the  information  requisite  for- 
intelligent  tariff  legislation.  We  protest  against  the  Democratic 
method  of  legislating  on  these  vitally  important  subjects  with- 
out careful  investigation. 

We  condemn  the  Democratic  tariff  bills  passed  by  the  House 
of  Representatives  of  the  Sixty-second  Congress,  as  sectional, 
as  injurious  to  the  public  credit  and  as  destructive  of  business 
enterprise. 

The  Cost   of  Living. 

The  steadily  increasing  cost  of  living  has  become  a  matter  not 
only  of  national,  but  of  world-wide  concern.  The  fact  that  it  is 
not  due  to  the  protective  tariff  system  is  evidenced  by  the  ex- 
istence of  similar  conditions  in  countries  which  have  a  tariff 
policy  different  from  our  own,  as  well  as  by  the  fact  that  the  cost 
of  living  has  increased,  while  rates  of  duty  have  remained  sta- 
tionary or  been  reduced. 

The  Republican  Party  will  support  a  prompt  scientific  inquiry 
into  the  causes  which  are  operative,  both  in  the  United  States 
and  elsewhere,  to  increase  the  cost  of  living.  When  the  exact 
facts  are  known  it  will  take  the  necessary  steps  to  remove  any 
abuses  that  may  be  found  to  exist,  in  order  that  the  cost  of  the 
food,  clothing  and  shelter  of  the  people  may  in  no  way  be  undulj 
or  artificially   increased. 


17 


274  REPUBLICAN  PLATFORM— 1912. 


Banking   and    Currency. 


The  Republican  Party  has  always  stood  for  a  sound  currency 
and  for  safe  banking  methods.  It  is  responsible  for  the  re- 
sumption of  specie  payments,  and  for  the  establishment  of  the 
gold  standard.  It  is  committed  to  the  progressive  development 
of  our  banking  and  currency  system.  Our  banking  arrangements 
to-day  need  further  revision  to  meet  the  requirements  of  current 
conditions.  We  need  measures  which  will  prevent  the  recur- 
rence of  money  panics  and  financial  disturbances,  and  which 
will  promote  the  prosperity  of  business  and  the  welfare  of  labor 
by  producing  constant  employment. 

We  need  better  currency  facilities  for  the  movement  of  crops 
in  the  West  and  South.  We  need  banking  arrangements  under 
American  auspices  for  the  encouragement  and  better  conduct  of 
our  foreign  trade.  In  attaining  these  ends  the  independence  of 
individual  banks,  whether  organized  under  National  or  State 
charters,  must  be  carefully  protected,  and  our  banking  and  cur- 
rency system  must  be  safeguarded  from  any  possibility  of  dom- 
ination by  sectional,  financial  or  political  interests. 

It  is  of  great  importance  to  the  social  and  economic  welfare 
of  this  country  that  its  farmers  have  facilities  for  borrowing 
easily  and  cheaply  the  money  they  need  to  increase  the  produc- 
tivity of  their  land.  It  is  as  important  that  financial  machinery 
be  provided  to  supply  the  demand  of  farmers  for  credit,  as  it 
is  that  the  banking  and  currency  systems  be  reformed  in  the 
interest  of  general  business.  Therefore  we  recommend  and 
urge  an  authoritative  investigation  of  agricultural  credit  so- 
cieties and  corporations  in  other  countries,  and  the  passage  of 
State  and  Federal  laws  for  the  establishment  and  capable  super- 
vision of  organizations  having  for  the  purpose  the  loaning  of 
funds  to  farmers. 

The    Civil    Service. 

We  reaffirm  our  adherence  to  the  principle  of  appointment  to 
public  office  based  on  proved  fitness  and  tenure  during  good  be- 
havior and  efficiency. 

The  Republican  Party  stands  committed  to  the  maintenance, 
extension  and  enforcement  of  the  civil  service  law,  and  it  favors 
the  passage  of  legislation  empowering  the  President  to  extend 
the  competitive  service  so  far  as  practicable.  We  favor  legis- 
lation to  make  possible  the  equitable  retirement  of  disabled  and 
superannuated  members  of  the  civil  service,  in  order  that  a 
higher  standard  of  efficiency  may  be  maintained. 

We  favor  the  amendment  of  the  Federal  employees'  liability 
law  so  as  to  extend  its  provisions  to  all  Government  employees 
as  well  as  to  provide  a  more  liberal  scale  of  compensation  for 
injury  and  death. 

Campaign    Contributions. 

We  favor  such  additional  legislation  as  may  be  necessary  more 
effectually  to  prohibit  corporations  from  contributing  funds, 
directly  or  indirectly,  to  campaigns  for  the  nomination  or  elec- 
tion of  the  President,  the  Vice-President,  Senators  and  Repre- 
sentatives in  Congress. 

We  heartily  approve  the  recent  act  of  Congress,  requiring  the 
fullest  publicity  in  regard  to  all  campaign  contributions  whether 
made  in  connection  with  primaries,  conventions  or  elections. 

Conservation   Policy. 

We  rejoice  in  the  success  of  the  distinctive  Republican  policy 
of  the  conservation  of  our  national  resources,  for  their  use  by  the 
people  without  waste  and  without  monopoly.  We  pledge  our- 
selves to  a  continuance  of  such  a  policy. 

We  favor  such  fair  and  reasonable  rules  and  regulations  as 
will  not  discourage  or  interfere  with  actual  bona  fide  home- 
seekers,  prospectors  and  miners  in  the  acquisition  of  public  lands 
under  existing  laws. 

In  the  interest  of  the  general  public,  and  particularly  of  the 


REPUBLICAN  PLATFORM— 1912.  275 

agricultural  or  rural  communities,  we  favor  legislation  looking 
to  the  establishment,  under  proper  regulations,  of  a  parcels  post, 
the  postal  rates  to  be  graduated  under  a  zone  similar  in  pro- 
portion to  the  length  of  carriage. 

Protection    of    American    Citizenship. 

We  approve  the  action  taken  by  the  President  and  the  Con- 
gress to  secure  with  Russia,  as  with  other  countries,  a  treaty 
that  will  recognize  the  absolute  right  of  expatriation,  and  that 
will  prevent  all  discrimination  of  whatever  kind  between  Amer- 
ican citizens,  whether  native  born  or  alien,  and  regardless  of 
race,  religion  or  previous  political  allegiance.  The  right  of 
asylum  is  a  precious  possession  of  the  people  of  the  United 
States  and  is  to  be  neither  surrendered  nor  restricted. 

The    Navy. 

We  believe  in  the  maintenance  of  an  adequate  navy  for  the 
national  defence,  and  we  condemn  the  action  of  the  Democratic 
House  of  Eepresentatives  in  refusing  to  authorize  the  construc- 
tion of  additional  ships. 

Merchant  Marine. 

We  believe  that  one  of  the  country's  most  urgent  needs  is  a 
revived  merchant  marine.  There  should  be  American  ships,  and 
plenty  of  them,  to  make  use  of  the  great  American  inter-oceanic 
canal  now  nearing  completion. 

Flood    Prevention    in    the    Mississippi. 

The  Mississippi  river  is  the  nation's  drainage  ditch.  Its  flood 
waters,  gathered  from  thirty-one  States  and  the  Dominion  of 
Canada,  constitute  an  overpowering  force  which  breaks  the 
levees  and  pours  its  torrents  over  many  million  acres  of  the 
richest  land  in  the  Union,  stopping  mails,  impeding  commerce, 
and  causing  great  loss  of  life  and  property.  These  floods  are 
national  in  scope  and  the  disasters  they  produce  seriously  affect 
the  general  welfare.  The  States,  unaided,  cannot  cope  with  this 
giant  problem ;  hence  we  believe  the  Federal  Government  should 
assume  a  fair  proportion  of  the  burden  of  its  control  so  as  to 
prevent  the  disasters  from  recurring  floods. 

Reclamation. 

We  favor  the  continuance  of  the  policy  of  the  Government  with 
regard  to  the  reclamation  of  arid  lands,  and  for  the  encourage- 
ment of  the  speedy  settlement  and  improvement  of  such  lands 
we  favor  an  amendment  to  the  law  that  will  reasonably  extend 
the  time  within  which  the  cost  of  any  reclamation  project  may 
be  repaid  by  the  land  owners  under  it. 

Rivers  and  Harbors. 

We  favor  a  liberal  and  systematic  policy  for  the  improvement 
of  our  rivers  and  harbors.  Such  improvement  should  be  made 
upon  expert  information  and  after  a  careful  comparison  of  cost 
and  prospective  benefits. 

• 
Alaska. 

We  favor  a  liberal  policy  toward  Alaska  to  promote  the  de- 
velopment of  the  great  resources  of  that  district,  with  such  safe- 
guards as  will  prevent  waste  and  monopoly. 

We  favor  the  opening  of  the  coal  lands  to  development  through 
a  law  leasing  the  lands  on  such  terms  as  will  invite  development 
and  provide  fuel  for  the  navy  and  the  commerce  of  the  Pacific 
ocean,  while  retaining  title  in  the  United  States  to  prevent  mo- 
nopoly. 


REPUBLICAN'  PLATFORM— 1912.  277 

in  which  he  had  the  co-operation  of  a  Republican  Congress,  an 
unexampled  amount  of  constructive  legislation  was  framed  and 
passed  in  the  interest  of  the  people  and  in  obedience  to  their 
wish.  That  legislation  is  a  record  on  which  any  administra- 
tion might  appeal  with  confidence  to  the  favorable  judgment  of 
history. 

We  appeal  to  the  American  electorate  upon  the  record  of  the 
Republican  Party  and  upon  this  declaration  of  its  principles  and 
purposes.  We  are  confident  that  under  the  leadership  of  the  can- 
didates here  to  be  nominated  our  appeal  will  not  be  in  vain ;  that 
the  Republican  Party  will  meet  every  just  expectation  of  the 
people  whose  servant  it  is;  that  under  its  administration  and  its 
laws  our  nation  will  continue  to  advance,  that  peace  and  pros- 
perity will  abide  with  the  people,  and  that  new  glory  will  be 
added  to  the  great  Republic. 


If  we  have  good  washes,  they  are  hetter  by  being  paid  la  good 
dollars,  and  If  we  have  poor  wages  they  are  made  poorer  by  being 
paid  in  poor  dollars. — Maj.  McKinley  to  delegation  of  workingmen, 
at   Canton,   1890. 

No  sophistries  or  subtleties  ean  make  money  or  ereate  a  cur- 
reney  whieh  is  good  for  |<r  and  which  is  not  equally  good  for  the 
other.  The  interests  of  »abor  and  capital  are  always  identical. — 
Hon.  C.  W.  Fairbanks,  In   United   States   Senate,   March  5,  1900. 

The  greatest  safeguard  of  hnman  rights  in  the  long  run  is  to 
be  found  in  independent  courts,  which  can  be  swayed  neither  by 
the  whisper  of  the  bribe  giver,  by  the  clamor  of  the  mob,  by  the 
command  of  the  autocrat  or  by  the  dark  threats  of  secret  organi- 
zation.— Hon.    Henry    Cabot    Lodge. 

The  Republican  Party  is  not  only  rich  in  men,  but  rich  in 
practical  and  beneficent  principles — it  is  rich,  too,  in  its  record,  in 
promises  performed  and  pledges  fulfilled,  and  so  we  are  for  party 
and  party  principles  first  and  will  acquiesce  in  the  choice  of  the 
majority,  rallying  around  the  standard  bearer  who  will  carry  us 
again   to  victor?'. — Hon.   James   S.   Sherman. 

Under  the  system  of  protection  every  hour  of  honest  toil  pur- 
chases more  of  material  comfort  for  the  toller  than  is  attainable 
under  any  other  system,  the  degree  of  such  advantage  being 
contingent  upon  the  completeness  and  accuracy  of  the  application 
of  the  protective  system.  This  advantage  comes  directly  or  in- 
directly to  all  classes  of  toilers,  be  they  weavers,  spinners,  car- 
penters, painters,  machinists,  fanners,  doctors,  editors  or  teachers. 
— Hon.  H.  B.  Metcalf,  Pawtucket,  R.  I.,  in  the  "American  Econ- 
omist." 

With  a  deep  sense  of  duty  to  so  order  our  country's  govern- 
ment that  the  blessings  -which  God  has  vouchsafed  to  us  may  be 
continued,  we  can  be  trusted  to  keep  the  pledge  given  to  the 
American  people  by  the  last  Republican  national  convention:  "The 
Republican  Party  will  uphold  at  all  times  the  authority  and  in- 
tegrity of  the  courts,  State  and  Federal,  and  will  ever  insist  that 
their  powers  to  enforce  their  process  and  to  protect  life,  liberty 
and  prosperity  shall  be  preserved  inviolate."— 'Senator  Root,  to 
Republican   National   Convention,   1912. 

The  carrying  out  ruthlessly  of  the  whims  and  freaks  of  great 
bodies  of  the  people  regardless  of  minorities,  in  fact,  the  trampling 
down  of  the  rights  of  minorities  by  brute  force  exercised  by  ma- 
jorities has  more  than  anything  else  brought  on  revolutions  and 
destroyed  States.  The  idea  that  assemblages  of  people  who  have 
never  fully  considered,  and,  indeed,  are  not  competent  to  con- 
sider judicial  questions,  should  reverse  the  careful  decisions  of 
the  conrts,  is  foreign  not  only  to  all  precedents  of  good  govern- 
ment, but  to  the  simplest  ideas  of  common  sense. — Andrew  D. 
White. 

In  the  remedy  by  judicial  recall  it  is  proposed  to  provide  by  law 
that  -whenever  a  judge  has  so  discharged  his  duties  as  to  induce 
a  certain  percentage  of  the  electorate  to  deem  it  wise  to  remove 
him,  and  that  percentage  sign  a  petition  asking  his  recall,  an  elec- 
tion shall  take  place  in  which  the  incumbent  shall  stand  against 
other  candidates;  and  if  he  does  not  secure  a  plurality  of  votes, 
he  is  "ipso  facto"  removed.  I  have  pointed  out  that  under  our 
form  of  government  and  constitution  many  of  the  issues  arising 
before  our  courts  are  in  effect  issues  between  the  State  and  the 
individual,  between  the  majority  and  the  minority — cases  in  whicn 
the  popular  interest  might  be  greatly  excited  to  secure  a  favorable 
judgment.  By  this  system  the  question  whether  the  judge  is  to  be 
removed  or  not  is  to  be  left  to  that  majority  that  may  be  greatly 
aroused  to  secure  from  him  a  judgment  favorable  to  them.  Could 
a  system  be  devised,  better  adapted  to  deprive  the  judiciary  of 
that  independence  without  whieh  the  liberty  and  other  rights  of 
the  individual  cannot  be  maintained  against  the  Government  and 
the   majority? — President    Taft,   at   Toledo. 


DEMOCRATIC  PLATFORM— 19 J2. 


We,  the  representatives  of  the  Democratic  Party  of  the  United 
States,  in  National  Convention  assembled,  reaffirm  our  devotion 
to  the  principles  of  democratic  government  formulated  by 
Thomas  Jefferson  and  enforced  by  a  long  and  illustrious  line  of 
Democratic  Presidents. 

TARIFF    REFORM. 

We  declare  it  to  be  a  fundamental  principle  of  the  Democratic 
Party  that  the  Federal  Government  under  the  Constitution  has  no 
right  or  power  to  impose  or  collect  tariff  duties  except  for  the 
purpose  of  revenue,  and  we  demand  that  the  collection  of  such 
taxes  shall  be  limited  to  the  necessities  of  government  honestly 
and  economically   administered. 

The  high  Republican  tariff  is  the  principal  cause  of  the  un- 
equal distribution  of  wealth;  it  is  a  system  of  taxation  which 
makes  the  rich  richer  and  the  poor  poorer ;  under  its  operations 
the  American  farmer  and  laboring  man  are  the  chief  sufferers ; 
it  raises  the  cost  of  the  necessaries  of  life  to  them,  but  does  not 
protect  their  product .  or  wages.  The  farmer  sells  largely  in 
free  markets  and  buys  almost  entirely  in  the  protected  markets. 
In  the  most  highly  protected  industries,  such  as  cotton  and 
wool,  steel  and  iron,  the  wages  of  i  the  laborers  are  the  lowest 
paid  in  any  of  our  industries.  We  denounce  the  Republican 
pretense  on  that  subject  and  assert  that  American  wages  are 
established  by  competitive  conditions  and  not  by  the  tariff. 

We  favor  the'  immediate  downward  revision  of  the  existing 
high,  and  in  many  cases  prohibitive,  tariff  duties,  insisting  that 
material  reductions  be  speedily  made  upon  the  necessaries  of 
life.  Articles  entering  into  competition  with  trust-controlled 
products  and  articles  of  American  manufacture  which  are  sold 
abroad  more  cheaply  than  at  home  should  be  put  upon  the  free 
list. 

We  recognize  that  our  system  of  tariff  taxation  is  intimately 
connected  with  the  business  of  the  country,  and  we  favor  the 
ultimate  attainment  of  the  principles  we  advocate  by  legislation 
that  will  not  injure  or  destroy  legitimate  industry. 

We  denounce  the  action  of  President  Taft  in  vetoing  the  bills 
to  reduce  the  tariff  in  the  cotton,  woolen,  metal  and  chemical 
schedules  and  the  Farmers'  Free-List  Bill,  all  of  which  were  de- 
signed to  give  immediate  relief  to  the  masses  from  the  exac- 
tions of  the  trusts. 

The  Republican  Party,  while  promising  tariff  revision,  has 
shown  by  its  tariff  legislation  that  such  revision  is  not  to  be  in 
the  people's  interest,  and  having  been  faithless  to  its  pledges  of 
1908,  it  should  not  longer  enjoy  the  confidence  of  the  nation. 
We  appeal  to  the  American  people  to  support  us  in  our  demand 
for  a  tariff  for  revenue  only. 

HIGH    COST   OF   LIVING. 

The  high  cost  of  living  is  a  serious  problem  in  every  Ameri- 
can home.  The  Republican  Party,  in  its  platform,  attempts  to 
escape  from  responsibility  for  present  conditions  by  denying  that 
they  are  due  to  a  protective  tariff.  We  take  issue  with  them  on 
this  subject,  and  charge  that  excessive  prices  result  in  a  large 
measure  from  the  high-tariff  laws  enacted  and  maintained  by 
the  Republican  Party  and  from  trusts  and  commercial  conspiracies 
fostered  and  encouraged  by  such  laws,  and  we  assert  that  no 
substantial  relief  can  be  secured  for  the  people  until  import 
duties  on  the  necessaries  of  life  are  materially  reduced  and  these 
criminal  conspiracies  broken  up. 

278 


DEMOCRATIC  PLATFORM— 1912.  279 


ANTI-TRUST   LAW. 


A  private  monopoly  is  indefensible  and  intolerable.  We  there- 
fore favor  the  vigorous  enforcement  of  the  criminal  as  well  as 
the  civil  law  against  trusts  and  trust  officials  and  demand  the  en- 
actment of  such  additional  legislation  as  may  be  necessary  to 
make  it  impossible  for  a  private  monopoly  to  exist  in  the  United 
States. 

We  favor  the  declaration  by  law  of  the  conditions  upon  which 
corporations  shall  be  permitted  to  engage  in  interstate  trade, 
including,  among  others,  the  prevention  of  holding  companies,  of 
interlocking  directors,  of  stock  watering,  of  discrimination  in 
price  and  the  control  by  any  one  corporation  of  so  large  a  propor- 
tion of  any  industry  as  to  make  it  a  menace  to  competitive 
conditions. 

We  condemn  the  action  of  the  Republican  Administration  in 
compromising  with  the  Standard  Oil  Company  and  the  Tobacco 
Trust  and  its  failure  to  invoke  the  criminal  provisions  of  the 
anti-trust  law  against  the  officers  of  those  corporations  after 
the  court  had  declared  that  from  the  undisputed  facts  in  the 
record  they  had  violated  the  criminal  provisions  of  the  law. 

We  regret  that  the  Sherman  Anti-Trust  Law  has  received  a 
judicial  construction  depriving  it  of  much  of  its  efficiency,  and  we 
favor  the  enactment  of  legislation  which  will  restore  to  the 
statute  the  strength  of  which  it  has  been  deprived  by  such 
interpretation. 

RIGHTS   OF   THE    STATES. 

We  believe  in  the  preservation  and  maintenance  in  their  full 
strength  and  integrity  of  the  three  co-ordinate  branches  of  the 
Federal  Government — the  executive,  the  legislative  ana  the  judi- 
cial— each  keeping  within  its  own  bounds  and  not  encroaching 
upon  the  just  powers  of  either  of  the  others. 

Believing  that  the  most  efficient  results  under  our  system  of 
government  are  to  be  attained  by  the  full  exercise  by  the  States 
of  their  reserved  sovereign  powers,  we  denounce  as  usurpation 
the  efforts  of  our  opponents  to  deprive  the  States  of  any  of  the 
rights  reserved  to  them,  and  to  enlarge  and  magnify  by  indirec- 
tion the  powers  of  the  Federal  Government. 

We  insist  upon  the  full  exercise  of  all  the  powers  of  the  Gov- 
ernment, both  State  and  National,  to  protect  the  people  from  in- 
justice at  the  hands  of  those  who  seek  to  make  the  Government 
a  private  asset  in  business.  There  is  no  twilight  zone  between 
the  Nation  and  the  State  in  which  exploiting  interests  can  take 
refuge  from  both.  It  is  as  necessary  that  the  Federal  Govern- 
ment shall  exercise  the  powers  reserved  to  them,  but  we  insist 
that  the  Federal  remedies  for  the  regulation  of  interstate  com- 
merce and  for  the  prevention  of  private  monopoly  shall  be  added 
to,  and  not  substituted  for,  State  remedies. 

INCOME  TAX  ;   ELECTION   OF   SENATORS. 

We  congratulate  the  country  upon  the  triumph  of  two  im- 
portant reforms  demanded  in  the  last  national  platform — namely, 
the  amendment  of  the  Federal  Constitution  authorizing  an  in- 
come tax  and  the  amendment  providing  for  the  popular  election 
of  Senators,  and  we  call  upon  the  people  of  all  the  States  to 
rally  to  the  support  of  the  pending  propositions  and  secure  their 
ratification. 

We  note  with  gratification  the  unanimous  sentiment  in  favor 
of  publicity  before  the  election  of  campaign  contributions,  a  meas- 
ure demanded  in  our  national  platform  of  1908,  and  at  that  time 
opposed  by  the  Republican  Party,  and  we  commend  the  Demo- 
cratic House  of  Representatives  for  extending  the  doctrine  of 
publicity  to  recommendations,  verbal  and  written,  upon  which 
Presidential  appointments  are  made,  to  the  ownership  and  con- 
trol of  newspapers  and  to  the  expenditures  made  by  and  in 
•behalf  of  those  who  aspire  to  Presidential  nominations,  and  we 
point  for  additional  justification  for  this  legislation  to  the  enor- 
mous expenditures  of  money  in  behalf  of  the  President  and  his 
predecessor  in  the  recent  contest  for  the  Republican  nomination 
for  President. 


280  DEMOCRATIC  PLATFORM-1912. 


PRESIDENTIAL    PRIMARIES. 

The  movement  toward  more  popular  government  should  be 
promoted  through  legislation  in  each  State,  which  will  permit 
tlie  expression  of  the  preference  of  the  electors  for  national  can- 
didates at  Presidential  primaries. 

We  direct  that  the  National  Committee  incorporate  in  the  call 
for  the  next  nominating  convention  a  requirement  that  all  ex- 
pressions of  preference  for  Presidential  candidates  shall  be  given 
and  the  selection  of  delegates  and  alternates  made  through  a 
primary  election  conducted  by  the  party  organization  in  each 
State,  where  such  expression  and  election  are  not  provided  for  by 
State  law.  Committee  men  who  are  he*reaft«  A  to  constitute  the 
membership  of  the  Democratic  National  Committee  and  whose 
election  is  not  provided  for  by  law,  shall  be  chosen  in  each  State 
at  such  primary  elections,  and  the  service  and  authority  of  com- 
mitteemen, however  chosen,  shall  begin  immediately  upon  the 
receipt  of  their  credentials  respectively. 

CAMPAIGN    CONTRIBUTIONS. 

We  pledge  the  Democratic  Party  to  the  enactment  of  a  law 
prohibiting  the  corporations  from  contributing  to  a  campaign 
fund  and  any  individual  from  contributing  any  amount  above 
a  reasonable  maximum. 


TERM  OF  PRESIDENT. 

We  favor  a  single  Presidential  term,  and  to  that  end  urge  the 
adoption  of  an  amendment  to  the  Constitution  making  the  Presi- 
dent of  the  United  States  ineligible  for  re-election,  and  we  pledge 
the  candidate  of  this  Convention  to  this  principle. 

DEMOCRATIC    CONGRESS. 

At  this  time,  when  the  Republican  Party,  after  a  generation 
of  unlimited  power  in  its  control  of  the  Federal  Government,  is 
rent  into  factions,  it  is  opportune  to  point  to  the  record  of  ac- 
complishment of  the  Democratic  House  of  Representatives  in  the 
Sixty-second  Congress.  We  indorse  its  action,  and  we  challenge 
comparison  of  its  record  with  that  of  any  Congress  which  has 
been  controlled  by  our  opponents.  We  call  the  attention  of  the 
patriotic  citizens  of  our  country  to  its  record  of  efficiency,  econ- 
omy and  constructive  legislation. 

It  has,  among  other  achievements,  revised  the  rules  of  the 
House  of  Representatives  so  as  to  give  to  the  Representatives 
of  the  American  people  freedom  of  speech  and  of  action  in  advo- 
cating, proposing  and  perfecting  remedial  legislation. 

It  has  passed  bills  for  the  relief  of  the  people  and  the  devel- 
opment of  our  country ;  it  has  endeavored  to  revise  the  tariff 
taxes  downward  in  the  interest  of  the  consuming  masses  and  thus 
to  reduce  the  high  cost  of  living. 

It  has  proposed  an  amendment  to  the  Federal  Constitution  pro- 
viding for  the  election  of  United  States  Senators  by  the  direct 
vote  of  the  people. 

It  has  secured  the  admission  of  Arizona  and  New  Mexico  as 
two  sovereign  States. 

It  has  required  the  publicity  of  campaign  expenses  both  before 
and  after  election  and  fixed  a  limit  upon  the  election  expenses 
of  United  States   Senators  and   Representatives. 

It  has  also  passed  a  Mil  to  prevent  the  abuse  of  the  writ  of 
injunction. 

It  has  passed  a  law  establishing  an  eight-hour  day  for  work- 
men on  all  national  public  work. 

It  has  passed  a  resolution  which  forced  the  President  to  take 
immediate  steps  to  abrogate  the  Russian  treaty. 

And  it  has  passed  the  great  supply  bills,  which  lessen  waste, 
and  extravagance  and  which  reduce  the  annual  expenses  of  the 
Government  by  many  millions  of  dollars. 

We  approve  the  measure  reported  by  the  Democratic  leaders 
in  the  House  of  Representatives  for  the  creation  of  a  Council  of 


DEMOCRATIC  PLATFORM— 1912.  281 

National  Defense,  which  will  determine  a  definite  naval  program. 
with  a  view  to  increased  efficiency  and  economy.  The  party 
that  proclaimed  and  has  always  enforced  the  Monroe  Doctrine 
and  was  sponsor  for  the  new  navy  will  continue  faithfully  to  ob- 
serve the  constitutional  requirements  to  provide  and  maintain 
an  adequate  and  well-proportioned  navy,  sufficient  to  defend 
American  policies,  protect  our  citizens  and  uphold  the  honor  and 
dignity  of  the  nation. 

REPUBLICAN    EXTRAVAGANCE. 

We  denounce  the  profligate  waste  of  the  money  wrung  from 
the  people  by  oppressive  taxation  through  the  lavish  appropria- 
tions of  recent  Republican  Congresses,  which  have  kept  taxes 
high  and  reduced  the  purchasing  power  of  the  people's  toil.  We 
demand  a  return  to  that  simplicity  and  economy  which  befits  a 
democratic  government,  and  a  reduction  in  the  number  of  use- 
less offices,  the  salaries  of  which  drain  the  substance  of  the  people. 

RAILROADS,     EXPRESS,     TELEGRAPH     AND     TELEPHONE. 

We  favor  the  efficient  supervision  and  rate  regulation  of  rail- 
roads, express  companies,  telegraph  and  telephone  lines  engaged 
in  interstate  commerce.  To  this  end  we  recommend  the  valuation 
of  railroads,  express  companies,  telegraph  and  telephone  lines  by 
the  Interstate  Commerce  Commission,  such  valuation  to  take  into 
consideration  the  physical  value  of  the  property,  the  original  cost, 
the  cost  of  reproduction  and  any  element  of  value  that  will  ren- 
der the  valuation  fair  and  just. 

We  favor  such  legislation  as  will  effectually  prohibit  the  rail- 
roads, express,  telegraph  and  telephone  companies  from  engaging 
in  business  which  brings  them  into  competition  with  their  ship- 
pers or  patrons  ;  also  legislation  preventing  the  overissue  of  stocks 
and  bonds  by  interstate  railroads,  express  companies,  telegraph 
and  telephone  lines,  and  legislation  which  will  assure  such  re- 
duction in  transportation  rates  as  conditions  will  permit,  care 
being  taken  to  avoid  reduction  that  would  compel  a  reduction  of 
wages,  prevent  adequate  service  or  do  injustice  to  legitimate 
investments. 

BANKING  LEGISLATION. 

We  oppose  the  so-called  Aldrich  bill  for  the  establishment  of  a 
central  bank,  and  we  believe  the  people  of  the  country  will  be 
largely  freed  from  panics  and  consequent  unemployment  and 
business  depression  by  such  a  systematic  revision  of  our  bank- 
ing laws  as  will  render  temporary  relief  in  localities  where  such 
relief  is  needed,  with  protection  from  control  or  dominion  by 
what  is  known  as  the  Money  Trust. 

Banks  exist  for  the  accommodation  of  the  public  and  not 
for  the  control  of  business.  All  legislation  on  the  subject  of  bank- 
ing and  currency  should  have  for  its  purpose  the  securing  of  these 
accommodations  on  terms  of  absolute  security  to  the  public  and  of 
complete  protection  from  the  misuse  of  the  power  that  wealth 
gives  to  those  who  possess  it. 

We  condemn  the  present  methods  of  depositing  government 
funds  in  a  few  favored  banks,  largely  situated  in  or  controlled  by 
Wall  Street,  in  return  for  political  favors,  and  we  pledge  our 
party  to  provide  by  law  for  their  deposit  by  competitive  kidding 
in  the  banking  institutions  of  the  country,  National  and  State, 
without  discrimination  as  to  locality,  upon  approved  securities 
and  subject  to  call  by  the  Government. 

RURAL   CREDITS. 

Of  equal  importance  with  the  question  of  currency  reform  is 
the  question  of  rural  credits  or  agricultural  finance.  Therefore 
we  recommend  that  an  investigation  of  agricultural  credit  socie- 
ties in  foreign  countries  be  made,  so  that  it  may  be  ascertained 
whether  a  system  of  rural  credits  may  be  devised  suitable  to 
conditions  in  the  United  States;  and  we  also  favor  legislation 
permitting  national  banks  to  loan  a  reasonable  proportion  of 
their  funds  on  real  estate  security. 


282  DEMOCRATIC  PLATFORM-1912. 

We  recognize  the  value  of  vocational  education  and  urge  Fed- 
eral appropriations  for  such  training  and  extension  teaching  in 
agriculture  in  co-operation  with  the  several  States. 

WATERWAYS. 

We  renew  the  declaration  in  our  last  platform  relating  to 
the  conservation  of  our  natural  resources  and  development  of 
our  waterways.  The  present  devastation  of  the  Lower  Mississippi 
Valley  accentuates  the  movement  for  the  regulation  of  river  flow 
by  additional  bank  and  levee  protection  below,  and  the  diversion, 
storage  and  control  of  the  flood  waters  above,  and  their  utiliza- 
tion for  beneficial  purposes  in  the  reclamation  of  arid  and  swamp 
lands  and  the  development  of  water  power,  instead  of  permitting 
the  floods  to  continue  as  heretofore,  agents  of  destruction. 

We  hold  that  the  control  of  the  Mississippi  River  is  a  national 
problem.  The  preservation  of  the  depth  of  its  water  for  the 
purpose  of  navigation,  the  building  of  levees  to  maintain  the 
integrity  of  its  channel  and  the  prevention  of  the  overflow  of  the 
land  and  its  consequent  devastation,  resulting  in  the  interrup- 
tion of  interstate  commerce,  the  disorganization  of  the  mail 
service  and  the  enormous  loss  of  life  and  property,  impose  an 
obligation  which  alone  can  be  discharged  by  the  General  Govern- 
ment. To  maintain  an  adequate  depth  of  water  the  entire  year, 
and  thereby  encourage  water  transportation,  is  a  consummation 
worthy  of  legislative  attention,  and  presents  an  issue  national 
in  its  character.  It  calls  for  prompt  action  on  the  part  of  Con- 
gress, and  the  Democratic  Party  pledges  itself  to  the  enactment 
of  legislation  leading  to  that  end. 

We  favor  the  co-operation  of  the  United  States  and  the  re- 
spective States  in  plans  for  the  comprehensive  treatment  of  all 
waterways,  with  a  view  of  co-ordinating  plans  for  channel  im- 
provement with  plans  for  drainage  of  swamp  and  overflowed 
lands,  and  to  this  end  we  favor  the  appropriation  by  the  Federal 
Government  of  sufficient  funds  to  make  surveys  of  such  lands, 
to  develop  plans  for  draining  the  same  and  to  supervise  the 
work  of  construction.  We  favor  the  adoption  of  a  liberal  and 
comprehensive  plan,  for  the  development  and  improvement  of 
our  inland  waterways,  with  economy  and  efficiency,  so '  as  to 
permit  the  navigation  by  vessels  of  standard  draught. 

POST  ROADS. 

We  favor  national  aid  to  State  and  local  authorities  in  th« 
construction  and  maintenance  of  post  roads. 

RIGHTS  OF  LABOR. 

We  repeat  our  declarations  of  the  platform  of  1908,  as  follows : 

"The  courts  of  justice  are  the  bulwarks  of  our  liberties  and 
we  yield  to  none  in  our  purpose  to  maintain  their  dignity.  Our 
party  has  given  to  the  bench  a  long  line  of  distinguished  justices, 
who  have  added  to  the  respect  and  confidence  in  which  this 
department  must  be  jealously  maintained.  We  resent  the  at- 
tempt of  the  Republican  Party  to  raise  a  false  issue  respecting 
the  judiciary.  It  is  an  unjust  reflection  upon  a  great  body  of  our 
citizens  to  assume  that  they  lack  respect  for  the  courts." 

It  is  the  function  of  the  courts  to  interpret  the  laws  which  the 
people  enact,  and  if  the  laws  appear  to  work  economic,  social  or 
political  injustice,  it  is  our  duty  to  change  them.  The  only  basis 
upon  which  the  integrity  of  our  courts  can  stand  is  that  of  un- 
swerving justice  and  protection  of  life,  personal  liberty  and 
property.  As  judicial  processes  may  be  abused,  we  should  guard 
them  against  abuse. 

Experience  has  proved  the  necessity  of  a  modification  of  the 
present  law  relating  to  injunction,  and  we  reiterate  the  pledges 
of  our  platforms  of  1806  and  1904  in  favor  of  a  measure  which 
passed  the  United  States  Senate  in  1896,  relating  to  contempt 
to  Federal  Courts,  and  providing  for  trial  by  jury  in  cases  of 
indirect  contempt. 

Questions  of  judicial  practice  have  arisen,  especially  in  con- 
nection with  industrial  disputes.     We  believe  that  the  parties  to 


DEMOCRATIC  PLATFORM— 1912.  283 

all  judicial  proceedings  should  be  treated  with  rigid  impar- 
tiality, and  that  injunctions  should  not  be  issued  in  any  case 
in  which  an  injunction  would  not  issue  if  no  industrial  dispute 
were  involved. 

The  expanding  organization  of  industry  makes  it  essential  that 
there  should  be  no  abridgement  of  the  right  of  the  wage-earners 
and  producers  to  organize  for  the  protection  of  wages  and  the 
improvement  of  labor  conditions,  to  the  end  that  such  labor  or- 
ganizations and  their  members  should  not  be  regarded  as  illegal 
combinations  in  restraint  of  trade. 

We  pledge  the  Democratic  Party  to  the  enactment  of  a  law 
creating  a  Department  of  Labor  represented  separately  in  the 
President's  Cabinet,  in  which  department  shall  be  included  the 
subject  of  mines  and  mining. 

We  pledge  the  Democratic  Party,  so  far  as  the  Federal  juris- 
diction extends,  to  an  employes'  compensation  law,  providing 
adequate  indemnity  for  injury  to  body  or  loss  of  life. 

CONSERVATION. 

We  believe  in  the  conservation  and  the  development,  for  the 
use  of  all  the  people,  of  the  natural  resources  of  the  country.  Our 
forests,  our  sources  of  water  supply,  our  arable  and  our  mineral 
lands,  our  navigable  streams  and  all  the  other  material  resources 
with  which  our  country  has  been  so  lavishly  endowed  constitute 
the  foundation  of  our  national  wealth.  Such  additional  legisla- 
tion as  may  be  necessary  to  prevent  their  being  wasted  or  ab- 
sorbed by  special  or  privileged  interests  should  be  enacted  and  the 
policy  of  their  conservation  should  be  rigidly  adhered  to. 

The  public  domain  should  be  administered  and  disposed  of  with 
due  regard  to  the  general  welfare.  Reservations  should  be  lim- 
ited to  the  purposes  which  they  purport  to  serve,  and  not  ex- 
tended to  include  land  wholly  unsuited  therefor.  The  unnecessary 
withdrawals  from  sale  and  settlement  of  enormous  tracts  of 
public  land,  upon  which  tree  growth  never  existed,  and  cannot  be 
promoted,  tends  only  to  retard  development,  create  discontent  and 
bring  reproach  upon  the  policy  of  conservation. 

The  public  land  laws  should  be  administered  in  a  spirit  of  the 
broadest  liberality  toward  the  settler  exhibiting  a  bona  fide 
purpose  to  comply  therewith,  to  the  end  that  the  invitation  of 
this  Government  to  the  landless  should  be  as  attractive  as  pos- 
sible ;  and  the  plain  provisions  of  the  forest-reserve  act  permitting 
homestead  entries  to  be  made  within  the  national  forests  should 
not  be  nullified  by  administrative  regulations  which  amount  to  a 
withdrawal  of  great  areas  of  the  same  from  settlement. 

Immediate  action  should  be  taken  by  Congress  to  make  avail- 
able the  vast  and  valuable  coal  deposits  of  Alaska  under  condi- 
tions that  will  be  a  perfect  guaranty  against  their  falling  into 
the  hands  of  monopolizing  corporations,  associations  or  interests. 

We  rejoice  in  the  inheritance  of  mineral  resources  unequaled 
in  extent,  variety  or  value,  and  in  the  development  of  a  mining 
industry  unequaled  in  its  magnitude  and  importance.  We  honor 
the  men  who  in  their  hazardous  toil  underground  daily  risk  their 
lives  in  extracting  and  preparing  for  our  use  the  products  of 
the  mine,  so  essential  to  the  industries,  the  commerce  and  the 
comfort  of  the  people  of  this  country.  And  we  pledge  ourselves 
to  the  extension  of  the  work  of  the  Bureau  of  Mines  in  every  way 
appropriate  for  national  legislation,  with  a  view  of  safeguarding 
the  lives  of  the  miners,  lessening  the  waste  of  essential  resources 
and  promoting  the  economic  development  of  mining,  which,  along 
with  agriculture,  must  in  the  future,  even  more  than  in  the  past, 
serve  as  the  very  foundation  of  our  national  prosperity  and 
welfare  and  our  international  commerce. 

AGRICULTURE. 

We  believe  in  encouraging  the  development  of  a  modern  sys- 
tem of  agriculture  and  a  systematic  effort  to  improve  the  condi- 
tions of  trade  in  farm  products  so  as  to  benefit  both  the  consumers 
and  producers.  And  as  an  efficient  means  to  this  end,  we  favor 
the  enactment  by  Congress  of  legislation  that' will  suppress  the 
pernicious  practice  of  gambling  in  agricultural  products  by  or- 
ganized exchanges  or  others. 


284  DEMOCRATIC  PLATFORM-1912. 

MERCHANT    MARINE. 

We  believe  in  fostering,  by  constitutional  regulation  of  com- 
merce, the  growth  of  a  merchant  marine,  which  shall  develop  and 
strengthen  the  commercial  ties  which  bind  us  to  our  sister  repub- 
lics of  the  South,  but  without  imposing  additional  burdens  upon 
the  people  and  without  bounties  or  subsidies  from  the  public 
treasury. 

We  urge  upon  Congress  the  speedy  enactment  of  laws  for  the 
greater  security  of  life  and  property  at  sea,  and  we  favor  the 
repeal  of  all  laws,  and  the  abrogation  of  so  much  of  our  treaties 
with  other  nations,  as  provide  for  the  arrest  and  imprisonment 
of  seamen  charged  with  desertion,  or  with  violation  of  their 
contract  of  service.  Such  laws  and  treaties  are  un-American  and 
violate  the  spirit,  if  not  the  letter,  of  the  Constitution  of  the 
United  States. 

We  favor  the  exemption  from  tolls  of  American  ships  engaged 
in  coastwise  trade  passing  through  the  Panama  Canal. 

We  also  favor  legislation  forbidding  the  use  of  the  Panama 
Canal  by  ships  owned  or  controlled  by  railroad  carriers  engaged 
in  transportation  competitive  with  the  canal. 

PURE    FOOD    AND    PUBLIC    HEALTH. 

We  reaffirm  our  previous  declarations  advocating  the  union 
and  strengthening  of  the  various  governmental  agencies  relating 
to  pure  foods,  quarantine,  vital  statistics  and  human  health. 
Thus  united  and  administered  without  partiality  to  or  discrimina- 
tion against  any  school  of  medicine  or  system  of  healing,  they 
would  constitute  a  single  health  service  not  subordinated  to  any 
commercial  or  financial  interests,  but  devoted  exclusively  to  the 
conservation  of  human  life  and  efficiency.  Moreover,  this  health 
service  should  co-operate  with  the  health  agencies  of  our  various 
States  and  cities,  without  interference  with  their  prerogatives  or 
with  the  freedom  of  individuals  to  employ  such  medical  or  hy- 
gienic aid  as  they  may  see  fit. 

CIVIL   SERVICE  LAW. 

The  law  pertaining  to  the  Civil  Service  should  be  honestly  and 
rigidly  enforced  to  the  end  that  merit  and  ability  shall  be  the 
standard  of  appointment  and  promotion  rather  than  service  ren- 
dered to  a  political  party ;  and  we  favor  a  reorganization  of  the 
Civil  Service  with  adequate  compensation  commensurate  with  the 
class  of  work  performed  for  all  officers  and  employes ;  we  also 
favor  the  extension  to  all  classes  of  civil-service  employes  of  the 
benefits  of  the  provisions  of  the  Employers'  Liability  Law ;  we  also 
recognize  the  right  of  direct  petition  to  Congress  by  employes  for 
the  redress  of  grievances. 

LAW   REFORM. 

We  recognize  the  urgent  need  of  reform  in  the  administration 
of  civil  and  criminal  law  in  the  United  States,  and  we  recommend 
the  enactment  of  such  legislation  and  the  promotion  of  such 
measures  as  will  rid  the  present  legal  system  of  the  delays,  ex- 
pense and  uncertainty  incidental  to  the  system  as  now  adminis- 
tered. 

THE  PHILIPPINES. 

We  reaffirm  the  position  thrice  announced  by  the  Democracy  in 
National  Convention  assembled,  against  a  policy  of  imperialism 
and  colonial  exploitation  in  the  Philippines  or  elsewhere.  We 
condemn  the  experiment  in  imperialism  as  an  inexcusable  blunder 
which  has  involved  us  in  enormous  expense,  brought  us  weakness 
instead  of  strength,  and  laid  our  Nation  open  to  the  charge  of 
a  I  andonmeut  of  the  fundamental  doctrine  of  self-government.  We 
favor  an  immediate  declaration  of  the  Nation's  purpose  to  recog- 
nize the  independence  of  the  Philippine  Islands  as  soon  as  a 
stable  government  can  be  established,  such  independence  to  be 
guaranteed  by  us  until   the  neutralization  of  the  islands  can  be 


DEMOCRATIC  PLATFORM— 1912.  285 

secured  by  treaty  with  other  powers.  In  recognizing  the  inde- 
pendence of  the  Philippines,  our  Government  should  retain  such 
lands  as  may  be  necessary  for  coaling  stations  and  naval  bases. 

ARIZONA    AND    NEW    MEXICO. 

We  welcome  Arizona  and  New  Mexico  to  the  sisterhood  of 
States  and  heartily  congratulate  them  upon  their  auspicious  be- 
ginning of  great  and  glorious  careers. 

ALASKA. 

We  demand  for  the  people  of  Alaska  the  full  enjoyment  of  the 
riglits  and  privileges  of  a  territorial  form  of  government,  and 
we  believe  that  the  officials  appointed  to  administer  the  govern- 
ment of  all  our  Territories  and  the  District  of  Columbia  should 
be  qualified  by  previous  bona  fide  residence. 

THE    RUSSIAN    TREATY. 

We  commend  the  patriotism  of  the  Democratic  members  of  the 
Senate  and  House  of  Representatives  which  compelled  the  termi- 
nation of  the  Russian  treaty  of  1832,  and  we  pledge  ourselves 
anew  to  preserve  the  sacred  rights  of  American  citizenship  at 
home  and  abroad.  No  treaty  should  receive  the  sanction  of  our 
Government  which  does  not  recognize  that  equality  of  all  of  our 
citizens,  irrespective  of  race  or  creed,  and  which  does  not  ex- 
pressly guarantee  the  fundamental  right  of  expatriation. 

The  constitutional  rights  of  American  citizens  should  protect 
them  on  our  borders  and  go  with  them  throughout  the  world, 
and  every  American  citizen  residing  or  having  property  in  any 
foreign  country  is  entitled  to  and  must  be  given  the  full  pro- 
tection of  the  United  States  Government,  both  for  himself  and 
his  property. 

PARCELS    POST    AND    RURAL    DELIVERY. 

We  favor  the  establishment  of  a  parcels  post  or  postal  express, 
and  also  the  extension  of  the  rural  delivery  system  as  rapidly  as 
practicable. 

PANAMA   CANAL   EXPOSITION. 

We  hereby  express  our  deep  interest  in  the  Great  Panama 
Canal  Exposition,  to  be  held  in  San  Francisco  in  1915,  and  favor 
such  encouragement  as  can  be  property  given. 

PROTECTION    OF    NATIONAL    UNIFORM. 

We  commend  to  the  several  States  the  adoption  of  a  law  mak- 
ing it  an  offense  for  the  proprietors  of  places  of  public  amuse- 
ment and  entertainment  to  discriminate  against  the  uniform  of 
the  United  States,  similar  to  the  law  passed  by  Congress  appli- 
cable to  the  District  of  Columbia  and  the  Territories  in  1911. 

PENSIONS. 

We  renew  the  declaration  of  our  last  platform  relating  to  a 
generous  pension  policy. 

RULE    OF    THE    PEOPLE. 

We  call  attention  to  the  fact  that  the  Democratic  Party's  de- 
mand for  a  return  to  the  rule  of  the  people,  expressed  in  the 
national  platform  four  years  ago,  has  now  become  the  accepted 
doctrine  of  a  large  majority  of  the  electors.  We  again  remind 
the  country  that  only  by  a  larger  exercise  of  the' reserved  power 
of  the  people  can  they  protect  themselves  from  the  misuse  of 
delegated  power  and  the  usurpation  of  governmental  instrumen- 
talities by  special  interests..''  For  this  reason  the  National  Con- 
vention insisted  on  the  overthrow  of  Cannonism  and  the  inaugu- 
ration of  a  system  by  which  the  United  States  Senators  could  be 
elected  by  direct  vote.  The  Democratic  party  offers  itself  to 
the  country  as  an  agency  through  w  ich  the  complete  overthrow 
and  extirpation  of  corruption,  fraud  and  machine  rule  in  Ameri- 
can polities  can   be  effected. 


286  DEMOCRATIC  PLATFORM— 1912. 


CONCLUSION. 


Our  platform  is  one  of  principles  wnich  we  believe  to  be  essen- 
tial to  our  national  welfare.  Our  pledges  are  made  to  be  kept 
when  in  office  as  well  as  relied  upon  during  the  campaign,  and 
we  invite  the  co-operation  of  all  citizens,  regardless  of  party, 
who  believe  in  maintaining  unimpaired  the  institutions  and 
traditions  of  our  country. 


Evils  are  to  be  suppressed  by  definite  and  practical  meas- 
ures— not  by  oratory  or  denunciation. — Hon.  Wm.  H.  Taft,  at 
Greensboro,  N.   C. 

The  national  credit  is  of  too  paramount  importance,  and  nothing: 
should  be  done  to  tarnish  or  impair  it. — Hon.  W.  WcKlnley,  in 
House  of  Representatives,  April  15,  1878. 

We  are  the  trustees  and  guardians  of  the  whole  Filipino  people, 
and  peculiarly  of  the  Ignorant  masses,  and  our  trust  is  not  dis- 
charged until  those  masses  are  given  education  sufficient  to  know 
their  civil  rights  and  maintain  them  against  a  more  powerful  class 
and  safely  to  exercise  the  political  franchise. — Hon.  Wm.  H.  Taft, 
in  special   report  to  the  President.  * 

Plans  have  been  suggested  for  the  migration  of  the  negroes  to 
some  other  country,  where  they  would  live  by  themselves  and  grow 
up  by  themselves,  and  have  a  society  by  themselves,  and  create  a 
nation  by  themselves.  Such  a  suggestion  is  chimerical.  The  negro 
has  no  desire  to  go,  and  the  people  of  the  South  would  seriously 
object  to  his  going. — Hon.  Wm.  H.  Taft,  at  Plymouthh  Church, 
Brooklyn.  • 

Money  Indebtedness  is  not  the  only  obligation  we  incurred 
and  assumed  in  the  great  Civil  War.  There  was  a  still  greater 
debt,  an  everlasting  obligation  that  could  never  be  paid  in  full. 
But  in  the  years  that  have  followed,  the  Republican  party  has 
inaugurated  and  developed  pension  laws  under  which  over  three 
and  one-half  billion  dollars  have  been  paid  to  disabled  veterans 
or  to  the  survivors  of  those  who  gave  their  lives  for  their  country 
and  their  flag.  This  pension  system,  a  product  of  the  policy  of 
the  Republican  Party,  has  no  precedent  in  history  and  no  equal 
in  justice  and  generosity  among  the  nations  of  the  earth.— Hon. 
James  S.   Sherman. 

The  arguments  adduced  in  support  of  the  free  sugar  proposal 
apply  with  equal  force  to  free  steel,  free  'wool,  to  the  transfer  to 
the  free  list  of  any  other  widely  used  commodity — and  with  no 
greater  force.  If  we  are  to  have  free  trade  in  one,  we  should 
have  free  trade  in  all  these  commodities.  Yet  Mr.  Underwood  was 
careful  not  to  propose  the  transfer  of  the  products  of  his  Birming- 
ham district  to  the  free  list.  The  sugar  industry  seems  to  have 
been  selected  as  the  victim,  for  no  other  reason  than  that  the 
sugar  growers  in  the  South  and  West  are  believed  to  lack  the 
political  power  for  successful  resistance.— New  Orleans  "Times- 
Democrat"    (Dem.) 

When  the  Sherwood  pension  bill  was  passed  by  the  House  of 
Representatives  it  was  heralded  as  a  Democratic  measure.  A 
little  analysis  of  the  vote  will  show  the  falsity  of  this  claim.  The 
Democrats  are  in  the  majority  in  the  House,  and  yet  the  roll-eall 
discloses  the  fact  that  132  Republicans  were  recorded  In  favor 
of  the  bill  and  only  97  Democrats.  The  Republicans  furnished  58 
per  cent,  of  the  votes  for  the  bill;  the  Democrats  42  per  cent.  Of 
all  the  Republicans  in  the  House  80  per  cent,  voted  for  the  bill, 
and  only  43  per  cent,  of  the  Democrats.  The  Republicans,  with 
only  42  per  cent,  of  the  membership  of  the  House,  furnished  58 
per  cent,  of  the  votes  for  the  bill.  The  Democrats,  with  58  per 
cent,  of  the  House  membership,  furnished  but  42  per  cent,  of  the 
votes  for  the  bill. — Omaha  "Bee." 
I* 

President  Taft  has  acted  in  the  Russian  passport  question  -with 
the  directness  that  always  characterizes  his  official  conduct. 
Having  exhausted  the  resources  of  diplomacy,  and  in  the  face  of 
an  overwhelming  vote  in  the  House  for  the  Snlzer  resolution, 
which  promised  to  end  friendly  relations  between  this  country 
and  Russia,  he  takes  the  initiative  himself  and  sends  Russia 
notice  of  the  intention  of  the  United  States  to  abrogate  the  treaty. 
The  House  resolution,  passing  Congress  and  signed  by  the  President, 
would  have  been  a  direct  offense  to  the  Bussian  Government  by 
the  United  States  and  would  have  been  resented  by  that  govern- 
ment. President  Taft,  heartily  in  sympathy  with  the  effort  to 
bring  about  the  proper  recognition  of  all  citizens  bearing  Ameri- 
can passports,  has  worked  quite  as  earnestly  for  the  end  sought 
by  the  Jewish  committee  as  any  member  of  that  committee,  and 
he  has  the  confidence  of  the  men  at  the  head  of  the  movement. 
The  abrogation  of  the  treaty  without  offense  will  be  followed 
by  negotiations  for  a  new  treaty,  aud  it  is  believed  in  diplomatic 
circles  that  the  hardships  -which  have  been  endured  by  persons  on 
account  of  race  and  religion  will  be  mitigated.  They  surely  would 
not  have  been  mitigated  had  the  treaty  been  abrogated  by  the 
Sulzer  resolution. — New  York  "Herald"   (Ind.). 


TARIFF    IN    REPUBLICAN    AND    DEMO- 
CRATIC PLATFORMS,   1856   TO   W2. 


REPUBLICAN    TARIFF    PLANKS. 

1860. 

While  providing  revenue  for  the  support  of  the  General  Gov- 
ernment by  duties  upon  imports,  sound  policy  requires  such  an 
adjustment  of  these  imposts  as  to  encourage  the  development  of 
the  industrial  interests  of  the  whole  country ;  and  we  commend 
that  policy  of  national  exchanges  which  secures  to  the  working- 
men  liberal  wages,  to  agriculture  remunerative  prices,  to  me- 
chanics and  manufacturers  an  adequate  reward  for  their  skill, 
labor  and  enterprise,  and  to  the  Nation  commercial  prosperity 
and  independence. 

(1864  and  1868  no  special  reference  to  tariff.) 

1872. 

The  annual  revenue,  after  paying  current  expenditures,  pen- 
sions, and  the  interest  on  the  public  debt,  should  furnish  a  mod- 
erate balance  for  the  reduction  of  the  principal,  and  that  revenue, 
except  so  much  as  may  be  derived  from  a  tax  on  tobacco  and 
liquors,  should  be  raised  by  duties  upon  importations,  the  details 
of  which  should  be  so  adjusted  as  to  aid  in  securing  remunerative 
wages  to  labor,  and  promote  the  industries,  prosperity  and 
growth  of  the  whole  country. 

1876. 

The  revenue  necessary  for  current  expenditures  and  the  obliga- 
tions of  the  public  debt  must  be  largely  derived  from  duties 
upon  importations,  which,  so  far  as  possible,  should  be  adjusted 
to  promote  the  interests  of  American  labor  and  advance  the  pros- 
perity of  the  whole  country. 

1880. 

We  reaffirm  the  belief  avowed  in  1876  that  the  duties  levied 
for  the  purpose  of  revenue  should  so  discriminate  as  to  favor 
American  labor. 

1884. 

It  is  the  first  duty  of  a  good  government  to  protect  the  rights 
and  promote  the  interests  of  its  own  people.  The  largest  di- 
versity of  industry  is  most  productive  of  general  prosperity  and 
of  the  comfort  and  independence  of  the  people.  We,  therefore, 
demand  that  the  imposition  of  duties  on  foreign  imports  shall 
be  made  not  "for  revenue  only,"  but  that  in  raising  the  requisite 
revenues  for  the  Government  such  duties  shall  be  so  levied  as  to 
afford  security  to  our  diversified  industries  and  protection  to  the 
rights  and  wages  of  the  laborer,  to- the  end  that  active  and  intel- 
ligent labor,  as  well  as  capital,  may  have  its  just  reward 
and  the  laboring  man  his  full  share  in  the  national  prosperity. 
Against  the  so-called  economic  system  of  the  Democratic  Party, 
which  would  degrade  our  labor  to  the  foreign  standard,  we  enter 
our  earnest  protest.  "  The  Democratic  Party  has  failed  com- 
pletely to  relieve  the  people  of  the  burden  of  unnecessary  tax- 
ation by  a  wise  reduction  of  the  surplus.  The  Republican  Party 
pledges  itself  to  correct  the  inequalities  of  the  tariff  and  to 
reduce  the  surplus,  not  by  the  vicious  and  indiscriminate  process 
of  horizontal  reduction,  but  by  such  methods  as  will  relieve 
the  taxpayer  without  injuring  the  labor  or  the  great  productive 


288         TARIFF  IN  REPUBLICAN  AND  DEMOCRATIC   PLATFORMS. 

interests  of  the  country.  We  recognize  the  importance  of  sheep- 
husbandry  in  the  United  States,  the  serious  depression  which 
it  is  now  experiencing  and  the  danger  threatening  its  future 
prosperity;  and  we,  therefore,  respect  the  demands  of  the  rep- 
resentatives of  this  important  agricultural  interest  for  a  read- 
justment of  duties  upon  foreign  wool,  in  order  that  such  industry 
shall  have  full  and  adequate  protection. 

1888. 

We  are  uncompromisingly  in  favor  of  the  American  system 
of  protection ;  we  protest  against  its  destruction  as  proposed 
by  the  President  and  his  party.  They  serve  the  interests  of 
Europe;  we  will  support  the  interests  of  America.  We  accept 
the  issue  and  confidently  appeal  to  the  people  for  their  judg- 
ment. The  protective  system  must  be  maintained.  Its  abandon- 
ment has  always  been  followed  by  general  disaster  to  all  inter- 
ests, except  those  of  the  usurer  and  the  sheriff.  We  denounce 
the  Mills  Bill  as  destructive  to  the  general  business,  the  labor, 
and  the  farming  interests  of  the  country,  and  we  heartily  en- 
dorse the  consistent  and  patriotic  action  of  the  Republican  Rep- 
resentatives in  Congress  in  opposing  its  passage.  We  condemn 
the  proposition  of  the  Democratic  Party  to  place  wool  on  the 
free  list,  and  we  insist  that  the  duties  thereon  shall  be  adjusted 
and  maintained  so  as  to  furnish  full  and  adequate  protection 
to  that  industry  throughout  the  United  States.  The  Republican 
Party  would  effect  all  needed  reduction  of  the  national  revenue 
by  repealing  the  taxes  upon  tobacco,  which  are  an  annoyance  and 
burden  to  agriculture,  and  the  tax  upon  spirits  used  in  the  arts 
and  for  mechanical  purposes,  and  by  such  revision  of  the  tariff 
laws  as  will  tend  to  check  imports  of  such  articles  as  are  pro- 
duced by  our  people,  the  production  of  which  gives  employment 
to  our  labor,  and  release  from  import  duties  those  articles  of 
foreign  production  (except  luxuries)  the  like  of  which  cannot 
be  produced  at  home.  If  there  shall  still  remain  a  larger  revenue 
than  is  requisite  for  the  wants  of  the  Government,  we  favor  the 
entire  repeal  of  internal  taxes  rather  than  the  surrender  of  any 
part  of  our  protective  system,  at  the  joint  behests  of  the  whisky 
trusts  and  the  agents  of  foreign  manufactures. 

1892. 

We  reaffirm  the  American  doctrine  of  protection.  We  call 
attention  to  its  growth  abroad.  We  maintain  that  the  pros- 
perous condition  of  our  country  is  largely  due  to  the  wise  rev- 
enue legislation  of  the  last  Republican  Congress.  We  believe 
that  all  articles  which  cannot  be  produced  in  the  United  States, 
except,  luxuries,  should  be  admitted  free  of  duty,  and  that  on 
all  imports  coming  into  competition  with  the  products  of  Amer- 
ican labor  there  should  be  levied  duties  equal  to  the  difference 
between  wages  abroad  and  at  home.  We  assert  that  the  prices 
of  manufactured  articles  of  general  consumption  have  been  re- 
duced under  the  operations  of  the  Tariff  Act  of  1S90. 

We  denounce  the  efforts  of  the  Democratic  majority  of  the 
House  of  Representatives  to  destroy  our  tariff  laws  by  piece- 
meal, as  manifested  by  their  attacks  upon  wool,  lead,  and  lead 
ores,  the  chief  product  of  a  number  of  States,  and  we  ask  the 
people  for  their  judgment  thereon. 

1896. 

We  renew  and  emphasize  the  allegiance  to  the  policy  of 
protection  as  the  bulwark  of  American  industrial  independence 
and  the  foundation  of  American  development  and  prosperity. 
This  true  American  policy  taxes  foreign  products  and  encour- 
ages home  industry;  it  puts  the  burden  of  revenue  on  for- 
eign goods ;  it  secures  the  American  market  for  the  American 
producer;  it  upholds  the  American  standard  of  wages  for  the 
American  workingman ;  it  puts  the  factory  by  the  side  of  the 
farm,  and  makes  the  American  farmer  less  dependent  on  for- 
eign demand  and  price;  it  diffuses  general  thrift,  and  founds 
the  strength  of  all  on  the  strength  of  each.  In  its  reasonable 
application    it   is   just,    fair   and    impartial;    equally   opposed    to 


TARIFF  IN  REPUBLICAN  AND  DEMOCRATIC   PLATFORMS.         289 

foreign  control  and  domestic  monopoly,  to  sectional  discrimina- 
tion and  individual  favoritism.  We  denounce  the  present  Demo- 
cratic tariff  as  sectional,  injurious  to  the  public  credit,  and  de- 
structive to  business  enterprise.  We  demand  such  an  equitable 
tariff  on  foreign  imports  which  come  into  competition  with  Amer- 
ican products  as  will  not  only  furnish  adequate  revenue  for 
the  necessary  expenses  of  the  Government,  but  will  protect  Amer- 
ican labor  from  degradation  to  the  wage  level  of  other  lands. 
We  are  not  pledged,  to  any  particular  schedules.  The  question 
of  rates  is  a  practical  question,  to  be  governed  by  the  conditions 
of  the  time  and  of  production ;  the  ruling  and  uncompromising 
principle  is  the  protection  and  development  of  American  labor 
and  industry.  The  country  demands  a  right  settlement,  and 
then  it  wants  rest. 

1900.  • 

We  renew  our  faith  in  the  policy  of  protection  to  Ameri- 
can labor.  In  that  policy  our  industries  have  been  established, 
diversified,  and  maintained.  By  protecting  the  home  market 
competition  has  neen  stimulated  and  production  cheapened. 
Opportunity  to  the  inventive  genius  of  our  people  has  been  se- 
cured and  wages  in  every  department  of  labor  maintained  at 
high  rates,  higher  now  than  ever  before,  and  always  distin- 
guishing our  working  people  in  their  better  condition  of  life  from 
those  of  any  competing  country.  Enjoying  the  blessings  of  the 
American  common  school,  secure  in  the  right  of  self-government, 
and  protected  in  the  occupancy  of  their  own  markets,  their  con- 
stantly increasing  knowledge  and  skill  have  enabled  them  to 
finally  enter  the  markets  of  the  world.  We  favor  the  associated 
policy  of  reciprocity  so  directed  as  to  open  our  markets  on  favor- 
able terms  for  what  we  do  not  ourselves  produce  in  return  for 
free  foreign  markets. 

1904. 

Protection  which  guards  and  develops  our  industries  is  a  car- 
dinal policy  of  the  Republican  Party.  The  measure  of  protection 
should  always  at  least  equal  the  difference  in  the  cost  of  pro- 
duction at  home  and  abroad.  We  insist  upon  the  maintenance 
of  the  principle  of  protection,  and,  therefore,  rates  of  duty  should 
be  readjusted  only  when  conditions  have  so  changed  that  the 
public  interest  demands  their  alteration,  but  this  work  cannot 
safely  be  committed  to  any  other  hands  than  those  of  the  Re- 
publican Party.  To  entrust  it  to  the  Democratic  Party  is  to  invite 
disaster.  Whether,  as  in  1892,  the  Democratic  Party  declares  the 
protective  tariff  unconstitutional,  or  whether  it  demands  tariff 
reform  or  tariff  revision,  its  real  object  is  always  the  destruc- 
tion of  the  protective  system.  However  specious  the  name,  the 
purpose  is  ever  the  same.  A  Democratic  tariff  has  always  been 
followed  by  business  adversity;  a  Republican  tariff  by  business 
prosperity.  To  a  Republican  Congress  and  a  Republican  Presi- 
dent this  great  question  can  be  safely  intrusted.  When  the  only 
free  trade  country  among  the  great  nations  agitates  a  return  to 
protection  the  chief  protective  country  should  not  falter  in  main- 
taining it. 

1908. 

The  Republican  Party  declares  unequivocally  for  the  revision 
of  the  tariff  by  a  special  session  of  Congress  immediately  follow- 
ing the  inauguration  of  the  next  President,  and  commends  the 
steps  already  taken  to  this  end  in  the  work  assigned  to  the  ap- 
propriate committees  of  Congress,  which  are  now  investigating 
the  operation  and  effect  of  existing  schedules.  In  all  tariff  legis- 
lation the  true  principle  of  protection  is  best  maintained  by  the 
Imposition  of  such  duties  as  will  equal  the  difference  between  the 
cost  of  production  at  home  and  abroad,  together  with  a  reasonable 
profit  to  American  industries.  We  favor  the  establishment  of 
maximum  and  minimum  rates  to  be  administered  by  the  Presi- 
dent under  limitations  fixed  in  the  law,  the  maximum  to  be  avail- 
able to  meet  discriminations  by  foreign  countries  against  Ameri- 
can goods  entering  their  markets,  and  the  minimum  to  repre- 
sent the  normal  measure  of  protection  at  home,  the  aim  and  pur- 


290        TARIFF  IN  REPUBLICAN  AND  DEMOCRATIC  PLATFORMS. 

pose  of  the  Republican  policy  being  not  only  to  preserve,  without 
excessive  duties,  that  security  against  foreign  competition  to  which 
American  manufacturers,  farmers  and  producers  are  entitled, 
but  also  to  maintain  the  high  standard  of  living  of  the  wage- 
earners  of  this  country,  who  are  the  most  direct  beneficiaries  of 
the  protective  system.  Between  the  United  States  and  the  Phil- 
ippines we  believe  in  a  free  interchange  of  products  with  such 
limitations  as  to  sugar  and  tobacco  as  will  afford  adequate  pro- 
tection to  domestic  interests. 

1912. 

We  reaffirm  our  belief  in  a  protective  tariff.  The  Republican 
tariff  policy  has  been  of  the  greatest  benefit  to  the  country, 
developing  our  resources,  diversifying  our  industries  and  pro- 
tecting Gur  workmen  against  competition  with  cheaper  labor 
abroad,  thus  establishing  for  our  wage-earners  the  American 
standard  of  living.  The  protective  tariff  is  so  woven  into  the 
fabric  of  our  industrial  and  agricultural  life  that  to  substitute 
for  it  a  tariff  for  revenue  only  would  destroy  many  industries 
and  throw  millions  of  our  people  out  of  employment.  The 
products  of  the  farm  and  of  the  mine  should  receive  the  same 
measure  of  protection  as  other  products  of  American  labor. 
We  hold  that  the  import  duties  should  be  high  enough  while 
yielding  a  sufficient  revenue  to  protect  adequately  American  in- 
dustries and  wages.  Some  of  the  existing  import  duties  are  too 
high,  and  should  be  reduced.  Readjustment  should  be  made 
from  time  to  time  to  conform  to  changed  conditions  and  to  re- 
duce excessive  rates,  but  without  injury  to  any  American  in- 
dustry. To  accomplish  this,  correct  information  is  indispensable. 
This  information  can  best  be  obtained  by  an  expert  commission, 
as  the  large  volume  of  useful  facts  contained  in  the  recent  reports 
of  the  tariff  board  has  demonstrated  the  pronounced  feature  of 
modern  industrial  life  is  its  enormous  diversifications.  To  apply 
tariff  rates  justly  to  these  changing  conditions  requires  closer 
study  and  more  scientific  methods  than  ever  before.  The  Re- 
publican' Party  has  shown  by  its  creation  of  a  tarift  board  its 
recognition  of  this  situation  and  its  determination  to  be  equal 
to  it.  We  condemn  the  Democratic  Party  for  its  failure  either 
to  provide  funds  for  the  continuance  of  this  board  or  to  make 
some  other  provision  for  securing  the  information  requisite  for 
intelligent  tariff  legislaton.  We  protest  against  the  Democratic 
method  of  legislating  on  these  vitally  important  subjects  with- 
out careful  investigation.  We  condemn  the  Democratic  tariff 
bills  passed  by  the  House  of  Representatives  of  the  Sixty-second 
Congress,  as  sectional,  as  injurious  to  the  public  credit  and  as 
destructive  of  business  enterprise. 


DEMOCRATIC  TARIFF  PLANKS. 

1856. 

The  time  has  come  for  the  people  of  the  United  States  to  de- 
clare themselves  in  favor  of  free  seas  and  progressive  free  trade 
throughout  the  world,  and,  by  solemn  manifestations,  to  place 
their  moral  influence  at  the  side  of  their  successful  example. 

18G0. 

We,  the  Democracy  of  the  Union,  in  convention  assembled, 
hereby  declare  our  affirmance  of  the  resolutions  unanimously 
adopted  and  declared  as  a  platform  of  principles  by  the  Demo- 
cratic Convention  in  Cincinnati  in  the  year  1856,  believing  that 
Democratc  principles  are  unchangeable  in  their  nature  when 
applied  to  the  same  subject-matters. 

1868. 

A  tariff  for  revenue  upon  foreign  imports,  and  such  equal 
taxation  under  the  Internal  Revenue  Laws  as  will  afford  inci- 
dental protection  to  domestic  manufactures,  and  as  will,   with- 


TARIFF  IN  REPUBLICAN  AND  DEMOCRATIC  PLATFORMS.         291 

out  Impairing  the  revenue,  impose  the  least  burden  upon  and 
best  promote  and  encourage  the  great  industrial  interests  of  the 
country. 

1872. 

Recognizing  that  there  are  in  our  midst  honest  but  irrecon- 
cilable differences  of  opinion  with  regard  to  the  respective  sys- 
tems of  protection  and  free  trade,  we  remit  the  discussion  of 
the  subject  to  the  people  in  the  Congressional  districts,  and  to  the 
decision  of  the  Congress  thereon,  wholly  free  from  executive 
interference  or  dictation. 

1876. 

We  denounce  the  present  tariff,  levied  upon  nearly  4000  ar- 
ticles, as  a  masterpiece  of  injustice,  inequality,  and  false  pre- 
tense. It  yields  a  dwindling,  not  a  yearly  rising  revenue.  It 
has  impoverished  many  industries  to  subsidize  a  few.  It  pro- 
hibits imports  that  might  purchase  the  products  of  American 
labor.  It  has  degraded  American  commerce  from  the  first  to  an 
inferior  rank  on  the  high  seas.  It  has  cut  down  the  sales  of 
American  manufactures  at  home  and  abroad,  and  depleted  the 
returns  of  American  agriculture — an  industry  followed  by  half 
our  people.  It  costs  the  people  five  times  more  than  it  produces 
to  the  Treasury,  obstructs  the  process  of  production,  and  wastes 
the  fruits  of  labor.  It  promotes  fraud,  fosters  smuggling,  en- 
riches dishonest  officials,  and  bankrupts  honest  merchants.  We 
demand  that  all  custom-house  taxation  shall  be  only  for  revenue. 

1880. 
A  tariff  for  revenue  only. 

1884. 

The  Democratic  Party  is  pledged  to  revise  the  tariff  in  a 
spirit  of  fairness  to  all  interests.  But,  in  making  the  reduction 
in  taxes,  it  is  not  proposed  to  injure  any  domestic  industries, 
but  rather  to  promote  their  healthy  growth.  From  the  founda- 
tion of  this  Government  taxes  collected  at  the  custom-house 
have  been  the  chief  source  of  federal  revenue.  Such  they  must 
continue  to  be.  Moreover,  many  industries  have  come  to  rely  upon 
legislation  for  successful  continuance,  so  that  any  change  of  law 
must  be  at  every  step  regardful  of  the  labor  and  capital  thus  in- 
volved. The  process  of  the  reform  must  be  subject  in  the  execu- 
tion to  this  plain  dictate  of  justice — all  taxation  shall  be  limited 
to  the  requirements  of  economical  government.  The  necessary 
reduction  and  taxation  can  and  must  be  effected  without  de- 
priving American  labor  of  the  ability  to  compete  successfully 
with  foreign  labor  and  without  imposing  lower  rates  of  duty 
than  will  be  ample  to  cover  any  increased  cost  of  production 
which  may  exist  in  consequence  of  the  higher  rate  of  wages 
prevailing  in  this  country.  Sufficient  revenue  to  pay  all  the 
expenses  of  the  Federal  Government  economically  administered, 
including  pensions,  interest,  and  principal  of  the  public  debt, 
can  be  got  under  our  present  system  of  taxation  from  the 
custom-house  taxes  on  fewer  imported  articles,  bearing  heaviest 
on  articles  of  luxury  and  bearing  lightest  on  articles  of  neces- 
sity. We,  therefore,  denounce  the  abuses  of  the  existing  tariff, 
and,  subject  to  the  preceding  limitations,  we  demand  that  fed- 
eral taxation  shall  be  exclusively  for  public  purposes,  and  shall 
not  exceed  the  needs  of  the  Government  economically  adminis- 
tered. 

1888. 

Our  established  domestic  industries  and  enterprises  should 
not  and  need  not  be  endangered  by  the  reduction  and  correction 
of  the  burdens  of  taxation.  On  the  contrary,  a  fair  and  careful 
revision  of  our  tax  laws,  with  due  allowance  for  the  difference 
between  the  wages  of  American  and  foreign  labor,  must  promote 
and  encourage  every  brandh  of  such  industries^  and  enterprises 
by  giving  them  assurance  of  an  extended  market  and  steady 
and  continuous  operations.  In  the  interests  of  American  labor, 
which  should  in  no  event  be  neglected,  the  revision  of  our  tax 


292         TARIFF  IN  REPUBLICAN  AND  DEMOCRATIC  PLATFORMS. 

laws  contemplated  by  the  Democratic  Party  should  promote  the 
advantage  of  such  labor  by  cheapening  the  cost  of  necessaries 
of  life  in  the  home  of  every  workingman,  and  at  the  same  time 
securing  to  him  steady  and  remunerative  employment.  Upon 
this  question  of  tariff  reform,  so  closely  concerning  every  phase  oT 
our  national  life,  and  upon  every  question  involved  in  the  problem 
of  good  government,  the  Democratic  Party  submits  its  principles 
and  professions  to  theuintelligent  suffrages  of  the  American  people. 

1892. 

We  denounce  Republican  protection  as  a  fraud,  a  robbery  of 
the  great  majority  of  the  American  people  for  the  benefit  of  the 
few.  We  declare  it  to  be  a  fundamental  principle  of  the  Demo- 
cratic Party  that  the  Federal  Government  has  no  constitutional 
power  to  impose  and  collect  tariff  duties,  except  for  the  pur- 
poses of  revenue  only;  and  we  demand  that  the  collection  of 
such  taxes  shall  be  limited  to  the  necessities  of  the  Government 
when  honestly  and  economically  administered.  We  denounce 
the  McKinley  tariff  law,  enacted  by  the  Fifty-first  Congress,  as 
the  culminating  atrocity  of  class  legislation ;  we  indorse  the 
efforts  made  by  the  Democrats  of  the  present  Congress  to  modify 
its  most  oppressive  features  in  the  direction  of  free  raw  ma- 
terials and  cheaper  manufactured  goods  that  enter  into  general 
consumption,  and  we  promise  its  repeal  as  one  of  the  beneficent 
results  that  will  follow  the  action  of  the  people  in  trusting 
power  to  the  Democratic  Party.  Since  the  McKinley  tariff  went 
into  operation  there  have  been  ten  reductions  of  the  wages  of 
the  laboring  man  to  one  increase.  We  deny  that  there  has  been 
any  increase  of  prosperity  to  the  country  since  that  tariff  went 
into  operation,  and  we  point  to  the  dullness  and  distress,  to 
the  wage  reductions  and  strikes  in  the  iron  trade  as  the  best  pos- 
sible evidence  that  no  such  prosperity  has  resulted  from  the 
McKinley  act.  We  call  the  attention  of  thoughtful  Americans 
to  the  fact  that  after  thirty  years  of  restrictive  taxes  against 
the  importation  of  foreign  wealth  in  exchange  for  our  agri- 
cultural surplus  the  homes  and  farms  of  the  country  have  be- 
come burdened  with  a  real  estate  mortgage  debt  of  over  two 
thousand  five  hundred  million  dollars  exclusive  of  all  other 
forms  of  indebtedness;  that  in  one  of  the  chief  agricultural 
States  of  the  West  there  appears  a  real  estate  mortgage  debt 
averaging  $165  per  capita  of  the  total  population,  and  that 
similar  conditions  and  tendencies  are  shown  to  exist  in  the 
other  agricultural  exporting  States.  We  denounce  a  policy  which 
fosters  no  industry  so  much  as  it  does  that  of  the  sheriff. 

1896. 

We  hold  that  tariff  duties  should  be  levied  for  the  purposes  of 
revenue,  such  duties  to  be  so  adjusted  as  to  operate  equally 
throughout  the  country  and  not  discriminate  between  class  or 
section,  and  that  taxation  should  be  limited  by  the  needs  of  the 
Government  honestly  and  economically  administered.  We  de- 
nounce, as  disturbing  to  business,  the  Republican  threat  to  re- 
store the  McKinley  law,  which  has  been  twice  condemned  by 
the  people  in  national  elections,  and  which,  enacted  under  the 
false  plea  of  protection  to  home  industry,  proved  a  prolific  breeder 
of  trusts  and  monopolies,  enriched  the  few  at  the  expense  of 
the  many,  restricted  trade,  and  deprived  the  producers  of  the 
great  American  staples  of  access  to  their  natural  markets. 

1900. 

We  condemn  the  Dingley  Tariff  law  as  a  trust-breeding  meas- 
ure, skillfully  devised  to  give  the  few  favors  which  they  do  not 
deserve  and  to  place  upon  the  many  burdens  which  they  should 
not  bear.  We  reaffirm  and  indorse  the  principles  of  the  National 
Democratic  Platform  adopted  at  Chicago  in  1896. 

1904. 

The  Democratic  Party  has  been,  and  will  continue  to  be. 
the   consistent    opponent   of    that    class    of    tariff    legislation    by 


TARIFF  IN  REPUBLICAN  AND  DEMOCRATIC  PLATFORMS.         2M 

which  certain  interests  have  been  permitted,  through  Congres- 
sional favor,  to  draw  a  heavy  tribute  from  the  American  peo- 
ple. This  monstrous  perversion  of  those  equal  opportunities 
which  our  political  institutions  were  established  to  secure  has 
caused  what  may  once  have  been  infant  industries  to  become 
the  greatest  combinations  of  capital  that  the  world  has  ever 
known.  These  especial  favorites  of  the  Government  have, 
through  trust  methods,  been  converted  into  monopolies,  thus 
1  ringing  to  an  end  domestic  competition,  which  was  the  only 
alleged  check  upon  the  extravagant  profits  made  possible  by 
the  protective  system.  These  industrial  combinations,  by  the 
financial  assistance  they  can  give,  now  control  the  policy  of 
the  Republican  Party.  We  denounce  protectionism  as  a  robbery 
of  the  many  to  enrich  the  few,  and  we  favor  a  tariff  limited  to 
the  needs  of  the  Government,  economically,  effectively,  and  con- 
stitutionally administered,  and  so  levied  as  not  to  discriminate 
against  any  industry,  class,  or  section  to  the  end  that  the  bur- 
dens of  taxation  shall  be  distributed  as  equally  as  possible. 

We  favor  a  revision  and  a  gradual  reduction  of  the  tariff 
by  the  friends  of  the  masses  and  for  the  common  weal,  and  not 
by  the  friends  of  its  abuses,  its  extortions,  and  its  discrimina- 
tions, keeping  in  view  the  ultimate  end  of  "equality  of  burdens 
and  equality  of  opportunities"  and  the  constitutional  purpose 
of  raising  a  revenue  by  taxation,  to  wit,  the  support  of  the  Fed- 
eral Government  in  all  its  integrity  and  virility,  but  in  simplicity. 

1908. 

We  welcome  the  belated  promise  of  tariff  reform  now  offered 
by  the  Republican  Party  in  tardy  recognition  of  the  righteous- 
ness of  the  Democratic  position  on  this  question ;  but  the  peo- 
ple cannot  safely  entrust  the  execution  of  this  important  work 
to  a  party  which  is  so  deeply  obligated  to  the  highly  protected 
interests  as  is  the  Republican  Party.  We  call  attention  to 
the  significant  fact  that  the  promised  relief  is  postponed  until 
after  the  coming  election — an  election  to  succeed  in  which  the 
Republican  Party  must  have  that  same  support  from  the  bene- 
ficiaries of  the  high  protective  tariff  as  it  has  always  hereto- 
fore received  from  them ;  and  to  the  further  fact  that  during 
years  of  uninterrupted  power  no  action  whateArer  has  been  taken 
by  the  Republican  Congress  to  correct  the  admittedly  existing 
tariff  iniquities.  We  favor  the  immediate  revision  of  the  tariff 
-by  tbe  reduction  of  import  duties.  Articles  entering  into  com- 
petition with  trust-controlled  products  should  be  placed  upon  the 
free  list,  and  material  reduction  should  be  made  in  the  tariff 
upon  the  necessaries  of  life,  especially  upon  articles  competing 
with  such  American  manufactures  as  are  sold  abroad  more 
cheaply  than  at  home;  and  gradual  reduction  should  be  made  in 
such  other  schedules  as  may  be  necessary  to  restore  the  tariff 
to  a  revenue  basis.  Existing  duties  have  given  to  the  manu- 
facturers of  paper  a  shelter  behind  which  they  have  organized 
combinations  to  raise  the  price  of  pulp  and  paper,  thus  imposing 
a  tax  upon  the  spread  of  knowledge.  We  demand  the  immediate 
repeal  of  the  tariff  on  wood  pulp,  print  paper,  lumber,  timber 
and  logs,  and  that  these  articles  be  placed  upon  the  free  list. 

1912. 

We  declare  it  to  be  a  fundamental  principle  of  the  Democratic 
Party  that  the  Federal  Government  under  the  Constitution  has  no 
right  or  power  to  impose  or  collect  tariff  duties  except  for  the 
purpose  of  revenue,  and  we  demand  that  the  collection  of  such 
taxes  shall  be  limited  to  the  necessities  of  government  honestly 
and  economically  administered,  r  The  high  Republican  tariff  is  the 
principal  cause  of  the  unequal  distribution  of  wealth  ;  it  is  a  sys- 
temfi  of  taxation  which  makes  the  rich  richer  and  the  poor 
poorer;  under  its  operations  tbe  American  farmer  and  laboring 
man  are  the  chief  sufferers ;  it  raises  the  cost  of  the  necessaries  of 
life  to  them,  but  does  not  protect  their  product  or  wages.  The 
farmer  sells  largely  in  free  markets  and  buys  almost  entirely  in 
the  protected  markets..  In  the  most  highly  protected  industries, 
such  as  cotton  and  wool,  steel  and  iron,  the  wages  of  tbe  laborers 
are  the  lowest  paid  in  any  of  our  industries.     We  denounce  the 


294         TARIFF  IN  REPUBLICAN  AND  DEMOCRATIC  PLATFORMS. 

Republican  pretense  on  that  subject  and  assert  that  American 
wages  are  established  by  competitive  conditions  and  not  by  the 
tariff.  We  favor  the  immediate  downward  revision  of  the  exist- 
ing high,  and  in  many  cases  prohibitive,  tariff  duties,  insisting 
that  material  reductons  be  speedily  made  upon  the  necessaries  of 
life.  Articles  entering  into  competition  with  trust-controlled 
products  and  articles  of  American  manufacture  which  are  sold 
abroad  more  cheaply  than  at  home  should  be  put  upon  the  free 
list.  We  recognize  that  our  system  of  tariff  taxation  is  inti- 
mately connected  with  the  business  of  the  country,  and  we  favor 
the  ultimate  attainment  of  the  principles  we  advocate  by  legisla- 
tion that  will  not  injure  or  destroy  legitimate  industry. 


To  extend  a  position  of  trust  in  the  spirit  of  distrust  is  not 
calculated  to  encourage  competent  men  to  accept  public  ser- 
vice.—Hon.  Charles  Nagel,  Secretary  of  Commerce  and   Labor. 

The  Republican  Party  stands  now  as  ever,  for  honest  money 
and  a  chance  to  earn  it  by  honest  toil.— From  an  address  by  Hon. 
Wm.  McKinley  before  the  Marquette  Club,  Chicago,  February  12, 
1806. 

Protection  saves  to  the  world  the  useless  expense  and  labor  of 
shipping  products  from  one  country  to  another  and  turns  these 
into  productive  sources  of  wealth. — Judge  William  Lawrence,  of 
Ohio,   in  the  "American  Economist." 

It  is  as  much  our  imperative  duty  to  protect  capital  and  labor 
in  the  free  and  proper  exercise  of  their  functions  as  it  is  to 
restrain  and  forbid  the  encroachments  of  wrong. — Hon.  C.  W. 
Fairbanks,  at   St.   Paul,   Minn.,  August   31,   1903. 

A  railroad  company  engaged  in  interstate  commerce  should  not 
be  permitted,  therefore,  to  issue  stock  or  bonds  and  put  them  on 
sale  in  the  market  except  after  a  certificate  by  the  Interstate 
Commerce  Commission  that  the  securities  are  issued  with  the 
approval  of  the  commission  for  a  legitimate  railroad  purpose. — 
Hon.  Wm.   H.  Taft,   at   Columbus,   Ohio. 

In  spite  of  the  general  comfort,  there  have  been  made  manifest 
by  signs  not  to  be  misunderstood,  a  quickening  of  the  public  con«- 
science  and  a  demand  for  the  remedy  of  abuses,  the  outgrowth  of 
this  prosperity,  and  for  a  higher  standard  of  business  integritv. 
Every  lover  of  his  country  should  have  a  feeling  of  pride  and 
exaltation  in  this  evidence  that  our  society  is  still  sound  at  the 
core. — Hon.    Wm.    H.    Taft,    at    Columbus,    Ohio. 

The  Wilson  bill  was  enacted  into  law.  The  proof  of  the 
pudding  is  in  the  eating.  There  were  three  million  men 
working  in  the  productive  industries  and  on  their  pro- 
ducts that  were  thrown  out  of  employment.  They,  learn- 
ing through  their  stomachs  as  to  the  effects  of  it,  helped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  and  mountains  will  fall  upon  you  again,  I  hope, 
in    1912,   and    I    know   in    1914   and    1916.— Ex-Speaker    Cannon. 

A  higher  standard  for  our  judiciary;  fewer  laws  and  better 
enforcement  of  them;  a  wider  public  appreciation  of  the  essentials 
of  democracy  and  of  the  principles  upon  which  this  Government 
was  founded,  will  help  us  to  the  solution  of  the  problems  before 
us,  and  as  the  very  basis  and  foundation  of  our  national  life,  we 
must  conserve  those  forces  which  insure  the  efficiency  of  our 
schools  and  safeguard  the  purity  of  our  homes. — Hon.  George  B. 
Cortelyou,  at  Urbana,  111.,  June  7,  1005. 

The  proposition  of  the  democrats  is  that  if  you  reduce  the  tariff 
you  will  reduce  prices.  That  is  susceptible  of  many  easy  tests. 
The  tariff  just  passed  put  hides  of  cattle  upon  the  free  list  and 
reduced  the  duty  on  boots  and  shoes  from  15  to  20  per  cent.  On 
the  Democratic  theory  that  prices  depend  on  the  tariff  there  ought 
to  have  been  a  corresponding  fall  in  the  prices.  As  a  matter  of 
fact,  hides  rose  after  the  passage  'of  the  last  tariff  bill,  and  boots 
and  shoes  have  certainly  not  declined.  We  had  to  pay  more  for 
our  Christmas  dinner  this  year  than  last.  If  we  wanted  turkey 
we  found  that  it  eost  more  than  a  year  ago.  Tariff,  the  Democrats 
will  tell  you.  How  could  It  have  been?  The  duty  on  turkeys  whs 
not  changed.  Chickens — the  duty  on  chickens  was  not  changed. 
How  could  no  change  in  the  tariff  have  made  a  change  In  the 
price?  Beef— beef  is  advancing.  The  tariff,  of  course,  say  the 
Democrats;  but  the  tariff  on  beef  was  reduced  25  per  cent.  Ham 
and  bacon — we  know  that  pork  in  all  its  forms  is  rising.  The 
tariff  reduced  the  duty  on  hams  and  bacon  20  per  cent.  Tea  and 
coffee— they  are  both  on  the  free  list,  'where  they  were  before. 
Sugar  and  salt— the  duty  on  sugar  Is  unchanged;  the  duty  on  salt 
Is  reduced.  Vegetables — the  duty  has  been  changed  on  none 
except  on  peas  and  cabbages,  and  those  are  reduced.  Lard  has 
advanced  from  11  to  18  cents  In  Washington;  but  the  duty  on 
lard    was    reduced   25   per   cent.— Senator   Lodge. 


STATISTICAL  STATEMENTS. 


Imports  of  merchandise  into  the  United  States,  showing  the 
percentage  thereof  free  of  duty,  customs  receipts,  and  aver- 
age ad  valorem  rate  of  duty,  during  the  S5  months'  opera- 
tion of  the  Payne  Tariff  Law,  August  5,  1909,  to  June  SO, 
1912,  compared  with  like  results  under  the  entire  operation 
of  the  McKinUy,  Wilson,  and  Dingley  Tariffs,  respectively : 


Imports. 

Per 
cent 
free. 

Customs 
receipts. 

Average 
ad  valorem  on- 

Entire  period  of— 

Free. 

Dutiable 

Total. 

Dutiable 

Total 
imports. 

McKinley   Law. 

(a)  47  months 

Monthly    average 

Million. 

$1,642.1 

84.9 

Million. 

$1,454.0 

30.9 

Million. 

$3,096.0 

65.8 

53.0 

Million. 

$684.8 

14.6 

Per  cent 
47.1 

Per  cent 
22.1 

Wilson  Law. 

(b)  85  months 

Monthly    average 

1,080.4 
30.9 

1,132.7 
32.4 

2,213.1 
63.3 

48.8 

485.0 
.      13.9 

42.8 

21.9 

Dingley  Law. 

(c)    144  months. 

Monthly    average 

5,428.5 
37.7 

6,821.5 
47.4 

12,250.0 
85.1 

44.3 

8,121.8 
21.7 

45.8 

25.5 

Payne  Law. 

(d)  35  months 

Monthly    average 

2,368.2 
67.7 

2,256.9 
64.5 

4,625.1 
132.2 

51.2 

928.8 
26.5 

41.2 

20.1 

(a)  Includes  October  1  to  5,  1890,  under  Act  of  1883;  and  August  28  to  31,  1894, 

under  Act  of  1894. 

(b)  Excludes  last  four  days  of  August,  1894,  included  under  McKinley  Law,  and 

includes  July  24  to  31,  1897,  under  Act  of  1897. 

(c)  Excludes  last  eight  days  of  July,  1897,  included  under  Wilson  Law;  excludes 

August  1  to  5,  1909,  included  under  Payne  Law. 

(d)  Includes  August  1  to  5,  1909,  under  Act  of  1897. 

NOTE.— A  reduction  of  about  $55,000,000  was  caused  in  customs  receipts  under 
the  McKinley  Act,  due  to  reduced  imports  in  the  closing  months  under  that  Act 
in  anticipation  of  passage  of  Wilson  Tariff,  whose  revenues  were  correspondingly 
increased.  Likewise  a  reduction  of  about  $45,000,000  was  caused  in  customs 
receipts  under  the  Dingley  Law,  due  to  heavy  imports  in  the  closing  months 
under  the  Wilson  Law,  whose  revenues  were  correspondingly  increased.  The 
high  percentage  of  free  imports  under  the  McKinley  Law  was  largely  due  to  the 
fact  that  under  that  Act  sugar  was  on  the  free  list.  Of  merchandise  other  than 
sugar  Imported  under  the  McKinley  Law,  39.56  per  cent  was  free  of  duty. 

Department  of  Commerce  and  Labor, 

Bureau  of  Statistics,  '< 

July  15,  1912. 


Looking  over  our  whole  broad  land  there  was  never  a  greater 
proportion  of  home  owners,  never  a  higher  level  of  comfort  among 
America's  workers. — Samuel  Gompers,  in  "American  Federationist.* 

There  can  be  no  question  whatever  that  to  abandon  representa- 
tive government  and  to  take  up  in  its  place  legislation  by  direct 
vote  is  to  return  from  a  high  stage  of  evolution  to  a  lower  and 
more   primitive    one. — Senator   Lodge. 

The  high  cost  of  living,  of  which  50  per  cent,  is  consumed  in 
food,  25  per  cent,  in  clothing  and  25  per  cent,  in  rent  and  fuel,  has 
not  been  produced  by  the  tariff,  because  the  tariff  has  remained 
the  same  while  the  increases  have  gone  on.  It  is  due  to  the 
change  of  conditions  the  world  over.  Living  luis  increased  every- 
where in  cost,  in  countries  where  there  is  free  trade  and  in 
countries   where   there    is    protection. — President    Taft,    at    Winona. 

295 


296 


STATISTICAL  STATEMENTS. 


Total  values  of  imports  entered  for  consumption  and  duties  col- 
lected thereon  from  i877  to  1911. 

[From  Statistical  Abstract.] 


Average 

Year 
ending 

Per 

cent 

of 

free. 

ad  valorem  rates 

Duty 

im- 
pqrts 

Total. 

Amounts 
of  duty 
collected. 

of  duty  on- 

col- 
lected 

per 
capita. 

June 
30— 

Dutiable. 

Free  and 

per 
capita. 

dutiable. 

Dollars. 

Dollars. 

Per  cent. 

Per  cent. 

Dollars. 

Dollars. 

1877 

439,823,537 

31.94 

128,428,343 

42.84 

29.20 

2.77 

9.49 

1878— 

438,613,267 

32.20 

127,195,159 

42.71 

29.00 

2.67 

9.21 

1879— 

439,872,719 

32.46 

133,395,436 

44.82 

30.33 

2.73 

9.00 

1880— 

627,526,470 

33.11 

182,747,654 

43.46 

29.12 

3.64 

12.51 

1881— 

650,618,282 

31.09 

193,800,880 

43.27 

29.79 

3.78 

12.68 

1882— 

716,717,389 

29.39 

216,138,916 

42.61 

30.16 

4.12 

13.65 

1883— 

701,220,180 

29.50 

210,637,293 

42.41 

30.04 

3.92 

13.05 

1884— 

667,751,827 

31.61 

190,282,836 

41.57 

28.50 

3.47 

12.16 

1885 

579,335,642 

33.22 

178,151,601 

45.83 

30.75 

3.17 

10.32 

1886— 

624,049,388 

33.69 

189,410,448 

45.53 

30.35 

3.30 

10.87 

1887__. 

679,644,657 

33.74 

214,222,310 

47.08 

31.52 

3.65 

11.58 

1888— 

707,091,408 

33.78 

216,042,256 

45.61 

30.55 

3.60 

11.79 

1889... 

734,681,107 

34.05 

220,576,989 

45.11 

30.02 

3.60 

11.99 

1890... 

765,703,693 

33.71 

226,540,037 

44.39 

29.59 

3.60 

12.16 

1891... 

845,483,252 

44.83 

216,885,701 

46.26 

25.65 

3.40 

13.24 

1892— 

804,297.933 

55.79 

174,124,270 

48.69 

21.65 

2.67 

12.36 

1893— 

832,732,993 

51.93 

199,143,678 

49.56 

23.79 

3.00 

12.55 

1894— 

636,614,420 

59.53 

129,558,892 

50.00 

20.56 

1.92 

9.32 

1895... 

731,162,090 

51.55 

149,450,608 

41.75 

20.44 

2.17 

10.61 

1896... 

759,694,084 

48.56 

157,013,506 

39.95 

20.67 

2.23 

10.81 

1897— 

789,251,030 

48.39 

172,760,361 

42.17 

21.89 

2.41 

11.02 

1898... 

587,153,700 

49.65 

145,438,385 

48.80 

24.77 

1.99 

8.05 

1899 

685,441,892 

43.72 

202,072,050 

52.07 

29.48 

2.72 

9.22 

1900... 

830,519,252 

44.16 

229,360,771 

49.24 

27.62 

3.02 

10.93 

1901... 

807,763,301 

41.98 

233,556,110 

49.64 

28.91 

2.96 

10.25 

1902 

899,793,754 

44.01 

251,453,155 

49.79 

27.95 

3.13 

11.18 

1903. ._ 

1,007,960,110 

43.38 

280,752,416 

49.03 

27.85 

3.42 

12.28 

1904... 

981,822,559 

46.26 

258,161,130 

48.77 

26.29 

3.16 

11.73 

1905— 

1,087,118,133 

47.56 

258,426,295 

45.24 

23.77 

3.03 

12.74 

1906 

1,213,417,649 

45.22 

293,910,396 

44.16 

24.22 

3.38 

13.9i 

1907— 

1,415,402,285 

45.35 

329,480,048 

42.55 

23.28 

3.72 

15.97 

1908... 

1,183,120,665 

44.43 

282,582,894 

42.94 

23.88 

3.13 

13.11 

1909— 

1,281,641,735 

46  V7 

294667,054 

43.15 

22.99 

3.21 

13.94 

1910. .. 

1,547,109,137 

49.21 

326,561,683 

41.52 

21.11 

3.50 

16.54 

1911... 

1,527,945,652 

50.85 

309,965.691 

41.22 

20.29 

3.25 

16.05 

We  are  not  a  nation  of  classes,  but  of  sturdy,  free,  Independent 
and  honorable  people,  despising  the  demagogue  and  never  capitu- 
lating   to    dishonor. — McKinley's    letter    of    acceptance,    189(5. 

The  State  is  potent.  Corporations  and  combinations  which 
derive  their  breath  from  the  State  are  within  its  absolute  and 
perpetual  control. — Hon.  C.  W.  Fairbanks,  at  St.  Paul,  Minn., 
August  31,  1903. 

Vigorous  action  and  measures  to  stamp  out  existing  abuses  and 
effect  reform  are  necessary  to  vindicate  society  as  at  present 
constituted.  Otherwise,  we  must  yield  to  those  who  seek  to  intro- 
duce a  new  order  of  things  on  a  socialistic  basis. — Hon.  Wm.  H. 
Taft,  at  Kansas   City,  Mo. 

Any  unjust  discrimination  in  the  terms  upon  which  transporta- 
tion of  freight  or  passengers  is  afforded  an  individual  or  a  locality 
paralyzes  and  withers  the  business  of  the  individual  or  the  lo- 
cality exactly  as  the  binding  of  the  arteries  and  veins  leading  to 
a  member  of  the  human  body  destroys  its  life. — Hon.  Wm.  H. 
Taft,    at    Columbus,    Ohio. 

The  right  of  railway  corporations  to  a  fair  and  profitable  return 
upon  their  investments  and  to  a  reasonable  freedom  in  their  regu- 
lations must  be  recognized;  but  it  seems  only  just  that,  so  far  bm 
Its  constitutional  authority  will  permit,  Congress  should  protect 
the  people  at  large  in  their  interstate  traffic  against  acts  of  injus- 
tice which  the  state  governments  are  powerless  to  prevent.— Presi- 
dent  Arthur. 


Much  money  has  been  spent  on  sea  harbors  and  the  mouths 
of  our  rivers  at  the  sea,  but  comparatively  little  upon  the  internal 
waterways  which  nature  has  furnished  to  the  country,  and  which 
form  highways  of  travel  from  one  border  of  it  to  the  other.  The 
eall  from  the  country  for  the  development  of  a  well-thought-out 
plan  for  the  improvement  of  all  these  waterways  is  so  emphatic 
that  it  cannot  longer  be  resisted.— Hon.  \\  m.  15.  Taft,  at  Kansas 
City,  Mo. 


STATl STL CAL  STATEMENTS. 


297 


Average  import  prices  in  the  month  of  March,  1897  to  1912. 
[Represents  prices  in  foreign  countries.] 


Articles 


Chemicals,  drugs,  etc.: 
Bark,    cinchona,    etc lb- 
Gums,     Camphor,     crude lb- 
Potash,    nitrate    of lb- 
Cotton,  raw 

Manufactures       of:       Cloth,  _ 

not   oleached sq.    yd__ 

Fibres,  vegetables,  etc.: 
Flax ton- 
Hemp  ton. 

Istle  or  tampico  fiber ton- 
Jute  ^oi> 

Manila ton- 
Sisal   grass    ton- 
Hides     and    skins,     other    than 
fur  skins: 

Goatskins lb- 
All   others,     except    hides    of 
cattle lb- 
Hides  of  cattle U>_ 

India  rubber lb- 
Iron    and    steel    and    manufac- 
tures of: 

Pig  iron  ton- 
Tin      plates,      terne      plates, 
etc lb- 
Silk,  raw . lb. 

Bnjrar  (Cane):     Not  above  No. 

16 

Above  No.  16 lb- 
Tin      in     bars,      blocks,      pigs, 
etc.    lb- 
Wood:     Boards,     plarks,     etc. 

M  ft- 

Wool:  Class  1— clothing lb- 
Class  2— combing lb- 
Class  3— carpet  lb- 
Manufactures  of:  Cloths lb- 
Zinc  or  spelter,  in  blocks, 
pigs  or  old lb- 


March — 


1897 


$0,043     $0,193 
.239         .294 
.027 
.112  .136 


219.54 

126.00 

49.95 

29.82 

79.67 
59.85 


.220 


22.90 

.023 

2.37 

.020 
.024 

.128 

10.27 

.171 
.200 
.111 
.567 

.033 


.094 

296.18 
133.65 
73.30 
33.59 
135.84 
166.23 


.272 


.035 


.027 
.027 

.254 

12.04 
.239 
.212 
.097 
1.22 


1906 


.0531 


$0,085 
.360 
.033 
.151 

.123 

278.79 
176.80 
89.71 
64.25 
183.88 
148.70 


.182 
.146 
.766 


28.81 

.030 
3.25 

.0202 
.032 

.342 

17.23 

.213 

.285 

.133 

1.09 

.036 


1910 


$0,081 
.300 
.029 
.186 

.083 

300.56 
167.21 
68.06 
44.39 
114.31 
107.40 


.284 


.153 
1.15 


24.30 


.041 

.314 

18.7 
.255 
.263 
.137 
1.07 


.040 


1911 


1912 


$0,076 
.293 
.032 
.208 

.107 

335.15 
178.40 

77.58 
74.31 
125.60 
100.81 


.-239 

.202 

.133 

1.06 


32.32 


.034 
3.49 


19.70 

.237 

.254 

.126 

1.17 


.051 


$0,072 
.295 
036 

.178 

.105 

357.56 
2.35.27 
91.81 
57.54 
122.97 
110.71 


.234 


.181 
.152 


36.36 

.061 
3.19 

.032 
.045 

.414 

17.81 

.211 

.244 

.124 

1.150 

.040 


Progress  of  manufacturing  in  the  United  States,   1850  to  1910. 
[From  official  reports  of  Census  Office.] 


Years. 

Number 
of  estab- 
lish- 
ments. 

Average 
number 
of  wage 
earners. 

Wages  paid. 

Value  of 
product. 

1850 

123,025 
140.4.33 
252.148 
253,852 
355,415 
512,254 
216,262 
268,491 

957,059 
1,311,246 
2.053,906 
2,732,595 
4,251,613 
5,3^8,406 
5,470,321 
6,615,046 

$236,755,464 

378,87s, 966 

775.584.343 

947,953,795 

1,891,228,321 

2,322/333,877 

2.611,540,532 

3,427,037,884 

$1,019,106,616 

I860 

1870 

1P80    

1,885,861,676 
4,232,3  5,442 
5,369.579,191 

1890 

1900* — 

9,372,437.283 
13,004,400.14.3 

1905* 

14.8O2.147.0S7 

1910 

20,672,051,870 

♦Exclusive  of  statistics  for  governmental  establishments  and  for  Ha wfii. 
Figures  for  1905  and  1910  do  not  include  neighborhood  industries  and  hand 
trades. 


Well-paid  wage-earners  are  generous  consumers. — Former 
Senator  Casey,  in   the   "American   Economist." 

Our  free  trade  friends  have  told  us  for  years  and  years  that  if 
we  do  not  buy  we  cannot  sell,  but  wre  have  gone  on  doing  both 
at  a  wondrously  increasing  rate,  but  selling  just  enough  more 
than  we  buy  to  meet  all  foreign  obligations  and  keep  our  gold  as 
a  buwark  of  redemption.  That  has  been  the  Republican  method, 
and  that  is  going  to  continue  to  be  the  Republican  method. — Hon. 
James    S.    Sherman. 


298 


STATISTICAL  STATEMENTS. 


Relative  conditions  of  prosperity  in  the  manufacturing  and  non- 
manufacturing  sections   of  the   United  States,  respectively. 

[Manufacturing  section  includes  the  New  England  and  Middle  States,  and 
Maryland,  District  of  Columbia,  Ohio,  Indiana,  Illinois,  Michigan,  and  Wis- 
consin.] 

[From  Census  of  1910.] 


Manufacturing 
section. 


Other  States. 


Per  cent  of  total  population  of  United  States.. 

Per  cent  of  total  area  of  United  States 

Gross  value  of  manufactures  in  1909 

Per  cent  of  total  manufactures  produced   in 

section  

Salaries  and  wages  paid  in  manufactures  in  1909 
Number  of  persons  employed  in  manufactures 

in  1909 

Average  value  per  acre  of  all  farm  lands 

Average  value  per  acre  of  all  lands  and  build- 
ings   

Average  value  of  buildings  per  improved  acre.. 

Average  value  per  head  of  milch  cows 

Average  value  per  head  of  horses 

Deposits  in  savings  banks,  total 

Deposits  in  savings  banks,  per  capita 

Deposits  in  all  banks,  total 

Deposits  in  all  banks,  per  capita. 

Bank  clearings,  total 

Bank  clearings,  average  per  capita 

Banking  resources,  total 

Banking  resources,  average  per  capita 

Salaries  paid  teachers  in  public  schools 

Newspapers  published,   number 


49.86 
14.1 
$15,412,363,000 

74.56 
$3,341,297,000 

5,710,890 
$49.65 

$66.00 

$23.59 

$39.18 

$115.57 

$3,428,630,913 

$74.62 

$11,263,118,622 

$245.13 

$146,468,134,000 

$3,187.70 

$16,099,403,523 

$350.38 

$145,797,511 

10.478 


50.04 

85.9 

$5,259,689,000 

25.44 
$1,024,316,000 

1,967,688 

$27.74 

$32.47 

$9.37 

$30.78 

$100.53 

$641,855,334 

$13.95 

$3,981,017,144 

$86.50 

$22,518,530,000 

$489.27 

$6,295,220,899 

$136.78 

$108,117,659 

12,135 


Importation  of  manufactures  into  United  Kingdom  and  United 
States,  respectively,  at  quinquennial  years,  1810  to  1911. 

[From  official  statistics  of  the  respective  governments.] 


Year 

Into  the  United 

Kingdom 
Million  dollars 

Into  the  United 

States 

Million  dollars 

1870. 

1875 



277 
354 
405 
406 
478 
483 
630 
708 
763 
705 
728 
773 
816 

229 

Ml 

1880 _ 

307 

1885 __ 

261 

1890...                                                    

348 

1895 

1900 

296 
337 

1905 

430 

1907 

638 

1908 ._     

528 

1909 

521 

1910 _ 

653 

1911 - 

649 

Exportation  of  manufactures  from  United  Kingdom  and  United 
States,  respectively,  at  quinquennial  years,  1810  to  1911. 


[From  official  statistics  of 

the 

respective  governments.] 

Year 

From  the  United 

Kingdom 

Million  dollars 

From  the  United 

States 

Million  dollars 

1870    

888 

979 

971 

913 

1,119 

911 

1,125 

1,327 

1,686 

1,467 

1,471 

1,004 

1,141 

70 

1875 — 

1880 — 

102 
122 

1885 

150 

1890 

1895    — 



179 
205 

1900 _ - — 

485 

1905 

611 

1907 

740 

1908 

1909 

1910 

751 

671 
767 

1911 

908 

STATISTICAL  STATEMENTS. 


299 


Exports  from  the  United  States  to  the  countries  which  protested 
against  the  Dingley  tariff  hill,  showing  increase  in  exports 
after  enactment  of  the  law. 


Year  ending  June 

so- 

Countries 

1896 

1898 

wn 

$405,741,339 

97,897,197 

39,022,899 

27,070,625 

19,143,606 

7,689,685 

6,557,448 

6,921,933 

5,979,046 

2,439,651 

191,046 

32,954 

$540,940,605 

155,039,972 

64,274,524 

47,619,201 

23,290,858 

20,385,041 

12,697,421 

9,992,894 

6,429,070 

5,697,912 

127,559 

263,970 

$576,613,974 

Germany  

Netherlands — 

2,7,495.814 
96,103,769 

Belgium  

45,016,622 

Italy   

Japan _ 

60,580,766 
36,721,409 

Denmark 

China   

Argentina      _    ___. _ 

13,196,950 
19,287,836 
43,918,511 

Austria-Hungary    __ 

19,514,787 

Greece  

Switzerland       

627,320 
704,808 

$618,687,429 

$886,759,027 

$1,199,7S2,.:66 

Coal  production  and  consumption  in  the  United  Kingdom,  Ger- 
many, and  the  United  States,  for  the  years  named. 


United  Kingdom. 

Germany. 

United  States. 

Tears. 

Produc- 
tion 
in  gross 
tons  of 
2,240  lbs. 

Con- 
sumption 
in  gross 
tons  of 
2,240  lbs. 

Produc- 
tion 
in  gross 
tons  of 
2,240  lbs. 

Con- 
sumption 
in  gross 
tons  of 
2,240  lbs. 

Produc- 
tion 
in  gross 
tons  of 
2,240  lbs. 

Con- 
sumption 
in  gross 
tons  of 
2,240  lbs.* 

1875 

1880 

1885 

1890 

1895 

190O 

1901 

133,306,000 
146,969,000 
159,351,000 
181,614,000 
189,661,000 
225,181,000 
219,047,000 
227,095,000 
230,334,000 
232,428,000 
236,129,000 
251,068,000 
267,831,000 
261,529,000 
263,774,000 
264,433,000 
a271,879,000 

115,304,000 
123,067,000 
128,585,000 
142,954,000 
146,754,000 
166,776,000 
161,264,000 
166,694,000 
166,529,000 
166,606,000 

37,049,000 
58,185,000 
72,513,000 
87,881,000 
102,317,000 
147,423,000 
150,603,000 
148,222,000 
159,892,000 
166,775,000 

46,810,000 
56,102,000 
69,612,000 
89,364,000 
104,204,000 
147,439,000 
149,736,000 
146,436,000 
157,250,000 
163,773,000 

46,139,000 
63,823,000 
99,250,000 
140,867,000 
172,426,000 
240, 789, 0CO 
261,875,000 

47,892,000 
60.670,000 
106,832,000 
125,117,481 
149,901,000 
221,067,000 
256,374,000 

1902 

1903 

1904 

269,277,000 
319,068,000 
314,122,000 

266,143,000 
312,009,000 
306,136,000 

1905 

1906 

168,968,000 
174,279,000 

171,067,000 
190.48->  ono 

170,248,000 
188,626,000 
205,045,000 

350,645,000 
369,783,000 
428.89fi  000 

342,571,000 
359,131,000 

1907 

182,643,0001  202,476,433 
176,223,000;  211,881,226 
177,737,0OOi  213,997,263 
179,891,000    218,788,500 

365,627,724 

1908 

210,927,000    371,288,000 
206,616,000    4.11    449  D0O 

423,061,172 

1909 

366,403,504 

1910 

213,156,000 

447,854,000 

397,991,689 

1911 

1 

*  Inclusive  of  bunker  coal  laden  on  vessels  in  the  foreign  trade, 
a  Preliminary  figures  for  1911. 

Note. — The  amount  of  British  bunker  coal  loaded  on  vessels  in  the  foreign 
trade  not  found  prior  to  1875. 


I  believe  In  the  doetrine  of  protection  because  the  facts  of  our 
national  experience  thoroughly  exemplify  its  truth.  No  great 
American  statesman,  except  the  half-forgotten  leaders  of  the 
slave  power,  have  disowned  the  protective  system.— Hon.  J.  P. 
Dolliver,  in  the  "American  Economist." 

Millions  of  American  wage-workers  now  have  a  shorter  work- 
day, by  several  hours,  than  they  had  thirty  years  ago,  and  the 
present  organization  of  employing  capital  has  almost  wholly  elim- 
inated the  uncertainty  formerly  experienced  by  wage-workers 
for  small  employers,  as  to  getting  their  pay  when  due. — Samuel 
Gompers,  in   ♦'American   Federationist,"  June,   1910. 

Constantly  increasing  wages,  on  the  whole,  during  the  present 
generation,  considerably  excelling  the  rise  in  average  prices 
meantime,  can  be  shown  by  the  records  of  the  wage-scales  for 
the  workers,  organized  and  unorganized,  in  nearly  all  the  occu- 
pations now  represented  by  international  unions  in  the  American 
Federation  of  Labor. — Samuel  Gompers,  in  "American  Federa- 
tionist." 


300 


STATISTICAL  STATEMENTS. 


Growth  in  coal  production  in  free-trade  Great  Britain,  compared 
with  that  of  the  protection  countries,  United  States,  Germany, 
and  France;  also  the  total  coal  production  of  the  world  and 
the  per  cent  supplied  by  the  United  States  at  quinquennial 
periods  from  1810  to  1895,  and  annually  from  1896  to  1910,  in 
tons  of  2,000  pounds. 

(From  reports  of  the  United  States  Geological  Survey.) 


Year. 

United 
States. 

Great 
Britain. 

Germany. 

France. 

Total  pro- 
duction 
of  the 
world. 

Per 

cent 

of 

U.S. 

1870 - 

1875 

1880_ 

1885 _. 

1890 

1895 

1896 _. 

1897 

1898 

1899 

1900_ 

1901 

1902 

Short  tons. 
33 ',035,580 
52,348,320 
71,481,570 
111,160,295 
157,770,963 
193,117,530 
191,986,357 
200,229,199 
219,976,267 
253,741,192 
269,684,027 
293,299,816 
301,590,439 
357,356,416 
351,816,398 
392,722,635 
414,157,278 
480,363,424 
415.842.698 
460,814,616 
501,596,378 

Short  tons. 
123,682,935 
149,303,263 
164,605,738 
178,473,588 
203,408,403 
212,320,725 
218,804,611 
226,385,523 
226,301,058 
246,508,155 
252,203,056 
245,332,578 
254,346,447 
257,974,605 
260,319,665 
264,464,408 
281,196,743 
299,970,677 
292,887,144 
295,427,229 
296,007,699 

Short  tons. 
37,488,312 
52,703,970 
65,177,634 
81,227,255 
98,398,500 
114,561,318 
123,943,159 
132,762,882 
144,283,196 
149,719,766 
164,805,202 
168,217,082 
165,826,496 
179,076,630 
186,785,378 
191,576,074 
222,350,526 
226,773,605 
237, 308, 973 
239,676,934 
245,043,120 

Short  tons. 
14,530,716 
18,694,916 
21,346,124 
21,510,359 
28,756,638 
30,877,922 
32,167,270 
33,938,987 
35,656,426 
36,215,026 
36,811,536 
35,596,586 
33,286,146 
38,466.873 
37,663,349 
38,951,360 
37,823,931 
40,708,215 
41,471,348 
41, 856. '69 
42,516,232 

Short  tons. 

234,850,088 

308,479,177 

369,413,780 

447,783,802 

563,693,232 

644,177,076 

664.001.71& 

697,213,515 

738,129,608 

801,976,021 

846,041,848 

870,711,044 

888,453,950 

972,195,531 

983,385,935 

1,036,480,849 

1,117,848,143 

1,223,165,248 

1,169,071,160 

1,229,176.668 

al, 278, 577, 812 

14.07 
16.97 
20.62 
24.82 
27.99 
29.98 
28.92 
28.72 
29.80 
31.63 
31.88 
33.69 
33  95 

1903 

1904- _. 

1905 

1906 

1907 

1908 

1909 

1910 

35.78 
37.89 
37.05 
37.05 
39.27 
35.57 
37.49 
39.23 

a  Lates 
lacking   for 
least  50.00C 

t  available 
certain  coi 
,000  tons. 

figures  are  v 
mtries,   note 

sed  in  maki 
bly   Austria 

tig  up  total 
whose  am 

s  for  1910.    Da 
lual  production 

ta  are 
is  at 

The  world's  production  of  pig  iron  from  1800  to  1911. 
[In  gross  tons  of  2240  pounds.] 


Year. 

United 
States. 

Great 
Britain. 

Germany. 

France. 

Various. 

Total. 

1869 

Tons. 

820,000 

1,665,000 

3,835,000 

4,050,000 

7, 613, 000 

9,446,000 

8,623,000 

9,652,000 

11,773,000 

13,620,000 

13,789,000 

15,878,000 

17,821,000 

Tons. 

3,830,000 
5,960,000 
7,750,000 
7,420,000 
8,250,000 
7,703,000 
8,660,000 
8,796,000 
8,610,000 
9,421,000 
8,960,000 
7, 8?9, 000 
8,680,000 
8,935,000 
8,694,000 
9,608,000 
10,109,000 
10,114.281 
9,056,851 
9,531,987 
10,012,098 

Tons. 

530,000 

1,390,000 

2,730,000 

2,690,000 

4,530,000 

5,465,000 

6,271,000 

6,771,000 

7,196,000 

8,013,000 

8,384,000 

7,754,000 

8,395,000 

9,860,000 

9,899,000 

10,703,000 

12,099,000 

12,672,000 

11,614,754 

12,445,111 

14,599,812 

Tons. 
900,000 
1,180,000 
1,730,000 
1,630,000 
1,720,000 
2,006,000 
2,302,000 
2,444,000 
2,485,000 
2,537,000 
2,671,000 
2.351,000 
2,367,000 
2,796,000 
2,927.000 
3,0*8,000 
3,267,000 
3, 532,  (XX) 
3,347.027 
3,517.368 
4,001,781 

Tons. 
1,100,000 
1,710,000 

Tons. 
7,180,000 

1870. _. 

11.9.15.000 

1S80._. 

2,090,000  |  18,135,000 

1885 

2,310,000  !  18,100,000 

18c9 

3,060,000      95  lfiSOOn 

1895___. 

4,247,000 
5,001,000 
5,267,000 
5,808,000 
6,464,000 
6,686,000 
6,886,000 
6,876,000 
6,677,000 
7,322,000 
7,569,000 
7,360,000 
7,591,000 
7,791,168 
88,738,308 
b9, 502, 236 

28,867,000 

1896 

30,857,000 

1897 

1898 

32,930,000 
35,872,000 

1899. 

40,055,000 
40,490,008 
40,798,000 

1900 

1901. 

1902 

44,139,900 

1903 

18,009,000 
16.497,000 
•2-  ,!)92,00O 
25,307,000 
25.7S1.000 
15.936,000 
25,795,000 
27,304,000 
23,650,000 

46,277,000 

1904_. 

1905 

45,339,000 
53,900,000 

1906 

58,142,000 

1907 

1908 

1909 

1910.. 

1911 

59,690,000 
47,745,800 
860,027, 772 
b65,4l9,927 



a  The  figures  included  for  Spain  cover  the  year  1908. 

b  The  figures  included  for  Hungary  cover  the  year  1909. 

Note.—  Official  figures  of  the  respective  national  statistical  offices  of  the 
United  States,  the  United  Kingdom,  Germany  and  France.  Figures  for  all 
other  countries  taken  from  the  French  and  Swedish  Mineral  Statistics. 


The  job  hunt*  the  man,  not  the  man   the  job.      When   that   eondl- 
tlon   exists  labor  1m   always   better  rewarded. — President    MeKlnley. 


STATISTICAL  STATEMENTS. 


301 


Selling  price  of  iron  ore  and   price  of  pig  iron  in  the   United 

States  at  date  of  bulling  movement,  1897  to  1912. 

[Furnished  by  Mr.  George  Smart,  Editor  of  the  Iron  Trade  Review.] 


Season 


Date  buying 
movement 


1897- 
1898_. 
1899- 
1900. . 
1901. 
1902-. 
1903- . 
1904_. 
1905_. 
1906-. 
19Q.7. 
1908-. 


-May  20.  1897— 
..March  20,  1898- 
..Feb.  1,  1899— 
..Dec.  15,   1899.  -— 

...Anril  15,    1901 

—Feb.    1,   1902 

..March  20,  1903_ 
—April  15,  1904... 
__Feb.    1,    1905— 

—Dec.    5,    1905 

..Nov.  10,  1906— 
—June  15,  1908— 
—May  10,  1909— 
—Dec.  24,  1909— 
—April  21,   1911 


1910 
1911. 
1912 March  20,  1912 


Season  Iron   Ore   Prices 


O.  R. 


2.60 
2.75 
3.00 
5.50 
4.25 
4.25 
4. .50 
3.25 
3.75 
4.25 
5.00 
4.50 
4.50 
5.00 
4.50 
3.75 


Mes. 
Bes. 


2.25 
2.25 
2.40 
4. ,50 
3.25 
3.25 
4.00 
3.00 
3.50 
4.00 
4.75 
4.25 
4.25 
4.75 
4.25 
3.50 


O.  R. 

non-B. 


2.15 
1.85 
2.15 
4.25 
3.00 
8.25 
3.00 
2.75 
3.20 
3.70 
4.20 
3.70 
3.70 
4.20 
3.70 


3.05 


Mes. 
non-B. 


Iron  Prices, 
Valley. 


8.35 
9.55 
10.30 
21.15 
16.15 
15.90 
21.50 
13.35 
15.  VJ 
17.25 
21 .  50 
16.00 
14.75 
19.00 
15.00 
14.25 


No. 

Fdy. 


8.4C 
9.  SO 
9.7- 
22.15 
14. 4  J 
15.90 
21.65 
13.15 
16.0) 
17.25 
21.50 
15.00 
14.23 
17.25 
13.75 
13.25 


Production  and  Prices  of  Bessemer   Steel  Rails   in  the  United 
States,    1867  to   1911. 


Tears. 

Gross  tons 

Price. 

Duty. 

1867      

2,277 

6,451 

8,616 

30,357 

34,152 

83,991 

115,192 

129,414 

259,699 

368,269 

385,865 

491,427 

61'0,682 

852,196 

1,187,770 

1,284,067 

1,148,709 

996,983 

959,471 

1,574,703 

2,101.904 

1,386,277 

1,510,057 

1,867,837 

1,293,053 

1,537,588 

1,129,400 

1,016,013 

1,299,628 

1,116.958 

1,644,520 

1,976.702 

2,270,688 

2.383.654 

2,870,816 

2.935.392 

2.9:6  756 

2,137,^57 

3,192,347 

3,791,459 

1  3,380,025 

1,349,153 

1,767,171 

1.884,442 

1,138,633 

$166.00 
158.46 
132,19 
106.79 
102.52 
111.94 
120.58 
94.28 
68.75 
59.25 
45.58 
42.21 
4«.21 
67.52 
61.08 
48.50 
37.75 
30.75 
28.52 
34.52 
37.08 
29.83 
29.25 
31.78 
29. "2 
30.00 
28.12 
24.00 
24.33 
28.00 
18.75 
17.62 
28.12 
32.29 
27.33 
28.00 
28.00 
28.00 
28.00 
28.00 
28.00 
28.00 
28.00 
28.00 
28.00 

1868 

45  per  cent   ad  valorem  to  January 

186a 

*     1,  1871. 

1870    

1871 

18?2  — 

1873     . 

1874 

$28.00    per    ton    from    January     1, 

1875 

1876    

1871,     to     August     1,     1872;     $25.20 

*     from  August  1,   1872,   to  Marcn  3, 

1875;   $28.00  from  March  3,1875,  to 

1877 

1878 

1879 — - 

July  1,  1883. 

1830 — 

1861 

1882 _ 

J 

1883               

1884 

1885 

$17.00  per  ton  from  July  1,  1883,  to 
r    October  6,  1890. 

1886 

1887 

1888 

1889 

1890 

** 

1891 

1892 

.  $13.44  per  ton  from  October  6,  1890, 
f      to  August  28,  1894. 

1893-       _. 

J 

1894 

1895 

1896.     

1897 • 

1898 _ 

iliiiiilii 

$7.84  per  ton  from  August  28,  1894, 
*     to  August  5,  1909. 

1909 

1910 

1911 

)  $3.92  per  ton  from  August  6,  1909, 
r     to  date. 

The  American  test  should  be  the  te^t  of  integrity,  loyalty  and 
Incorruptible  devotion,  whether  in  the  diwchnrsc  of  public  or 
private  business. — Address  of  Secretary  Cortelyou,  at  the  annual 
banquet  of  the  Auburn  Business  Men's  Association,  Auburn,  N.  Y'., 
Wednesday,   April    22,    JW)N. 


302 


STATISTICAL  STATEMENTS. 


Wheat  Production   and  Consumption  of  the  United  States  and 
Production   of  the  World. 

Quantities  of  wheat  produced  in  the  United  States  and  in  tho 
world,  and  of  wheat  and  wheat  flour  exported  and  retained 
for  consumption,  1877  to  1911;  flour  reduced  to  wheat  at  4y2 
bushels  to  barrel. 

[From   the  Statistical  Abstract.] 


Domestic 

Per 

capita 

Year 
ending 

Produc- 

Exports 

of 
domestic. 

retained 
for  con- 

Value 
of  crop 

World's 

June  30— 
(a) 

tion. 

sumption. 

con- 
sump- 
tion. 

per 
acre. 

production. 

Bushels. 

Bushels. 

Bushels. 

Bush. 

1877 

289,356,500 

57,043,936 

232,312,564 

5.01 

$10.09 

Average 

1878 

364,196,146 

92,071,726 

272,154,520 

5.72 

14.65 

"1         crop. 

1879 

420,122,400 

150,502,506 

269,619,894 

5.58 

10.15 

)■  1,944,000,000 

1880 

448,756,630 

180,304,180 

268,452,450 

5.35 

15.27 

J 

1881 

498,549,868 

186,321,514 

312,228,354 

6.09 

12.48 

1882 

383,280,090 

121,892,389 

261,387,701 

4.98 

12.12 

1883 

504,185,470 

147,811,316 

356,374,145 

6.64 

12.02 

• 

1884 

421,086,160 

111,534,182 

309,551,978 

5.64 

10.52 

2, 115, 000,000 

1885 

512,765,000 

132,570,366 

380,194,634 

6.77 

8.38 



1886 

357,112,000 

94,565,793 

262,546,207 

4.57 

8.05 

1887 

457,218,000 

153,804,969 

303,413,031 

5.17 

8.54 

~"M34l6w^oo6 

1888 

456,329,000 

119,624,344 

336,703,656 

5.62 

8.25 

1889 

415,868,000 

88,600,742 

327,267,258 

5.34 

10.32 

1890 

490,560,07)0 

109,430,467 

381,129,533 

6.05 

8.98 



1891 

399,262,000 

106,181,316 

293,080,684 

4.59 

9.28 

2,432,322,000 

1892 

611,780,000 

225,665,812 

386,114,188 

5.94 

12.86 

2,481,805,000 

1893 

515,949,000 

191,912,635 

324,036,365 

4.89  ' 

8.35 

2,562.913,000 

1894 

396,131,725 

164,283,129 

231,848,596 

3.44 

6.16 

2,660,557,000 

1895 

460,267,416 

144,812,718 

315,454,698 

4.59 

6.48 

2,562,518,000 

1896 

467,102,947 

126,443,968 

340,658,979 

4.85 

6.99 

2,506,320,000 

1897 

427,684,346 

145,124,972 

282,559,374 

3.95 

8.97 

2,236,268,000 

1898 

530,149,168 

217,306,004 

312,843,164 

4.29 

10.86 

2,948,246,000 

1899 

675,148,705 

222,618,420 

452,530,285 

6.09 

8.92 

2,783,885,000 

1900 

547,303,846 

186,096,762 

361,207,084 

4.75 

7.17 

2,640,751,000 

1901 

522,229,505 

215,990,073 

306,239,432 

3.88 

7.61 

2,956,975,000 

1902 

748,460,218 

234,772,515 

513,687,703 

6.39 

9.37 

3,090,116,000 

1903 

670,063,008 

202,905,598 

467,157,410 

5.69 

9.14 

3,189,813,000 

1904 

637,821,835 

•    120,727,613 

517,094,222 

6.18 

8.96 

3,163,542,000 

1905 

552,399,517 

44,112,910 

508,286,607 

5.99 

11.58 

3,327,084,000 

1906 

692,979,489 

97,609,007 

595,370,482 

6.85 

10.83 

3,434,354,000 

1907 

735,260,970 

146,700,425 

588,560,545 

6.64 

10.37 

3,128,604,000 

1908 

634,087,000 

168,043,669 

471,043,331 

5.22 

12.26 

3,173,281,000 

1909 

664,602,000 

114,268,468 

550,333,532 

5.99 

12.97 

3,632,777,000 

1910 

683,349,697 

417,364,318 

595,985,379 

6.38 

15.18 

3,650,952,000 

1911 

635,121,000 

69,311,760 

565,809,240 

5.96 

12.27 



a  The  production  and  value  per  acre  relate  to  the  calendar  year  preceding 
the  fiscal  year. 


As  a  result  in  a  larger  degree  of  our  protective  tariff  system, 
the  United  States  has  become  one  of  the  foremost  nations  of  the 
world. — Hon.    S.   M.   Cullom. 

No  men  living  are  more  worthy  to  be  trusted  than  those  who 
toil  up  from  poverty;  none  less  inclined  to  take  or  toueh  aught 
which    they   have   not    honestly    earned. — Lincoln. 

The  most  casual  observer  must  have  perceived  the  rapid  im- 
provement in  the  commercial  interests  of  the  country  which  fol- 
lowed the  enactment  of  the  Dingley  law,  an  improvement  which 
has  steadily  increased  in  degree  notwithstanding  the  adverse  influ- 
ence of  actual  war.— Hon.  C.  W.  Fairbanks,  in  United  States  Senate, 
June  3,  189S. 

By  practically  abolishing  the  Tariff  Board  the  Democrats  stultify 
themselves,  for  they  voted  for  its  creation,  and  have  always  pro- 
tested most  loudly  against  the  old  system  of  committee  hearings 
as  a  means  of  ascertaining  the  facts  on  which  duties  should  be 
based.  They  now  leave  no  alternative  to  a  return  to  that  dis- 
credited  system. — Portland   "Oregonian." 

I  am  a  protectionist  because  facts  confront  us,  not  theories. 
I  have  seen  the  wage-earners  of  Great  Britain  and  continental 
Europe;  know  how  they  live;  that  they  are  homeless  and  landless 
as  far  as  ownership  is  concerned;  that  they  are  helpless  and  hope- 
less as  to  any  brighter  future  for  themselves  or  their  children; 
that  in  their  scant  wages  there  is  no  margin  for  misfortune  and 
sickness,  pauperism  being  the  only  refuge.— -Hon.  William  P.  Frye, 


STATISTICAL  STATEMENTS. 


303 


Production,  farm  value,  and  value  per  bushel  of  corn,  wheat,  and 
oats,  1885  to  1911. 


Corn. 

Wheat. 

Oats. 

Total. 

Total. 

Total. 

Tear. 

Production. 

Farm 

value 

per 

bushel 

Dec.  1. 

Produc- 
tion. 

Farm 
value 
per 
bushel 
Dec.  1. 

Produc- 
tion. 

Farm 

value 

per 

bushel 

Dec.  1. 

1885     

Bushels. 
1,936,176,000 
1,665,441,000 
1,456,161,000 
1,987,790,000 
2,112,892,000 
1,489,970,000 
2,060,154,000 
1,628,464,000 
1,619,496,131 
1,212,770,052 
2,151,138,580 
2,283,875,165 
1,902,967,933 
1,924,184,660 
2,078,143,933 
2,105,102,516 
1,522, 519, S91 
2,523,648,312 
2,244,176,925 
2,467.480,934 
2,707,993,540 
2,9*27,416,091 
2,592,320,000 
2,668,651,000 
2,552,189,630 
2,552,189,630 
2,886,260,000 
2,531,488,000 

Cents. 
32.8 
36.6 
44.4 
34.1 
28.3 
50.6 
40.6 
39.4 
36.5 
45.7 
25.3 
21.5 
26.3 
28.7 
30.3 
35.7 
60.5 
40.3 
42.5 
44.1 
41.2 
39.9 
51.6 
60.6 
57.9 
57.9 
48.0 
61.8 

Bushels. 
357,112,000 
457,218,000 
456,329,000 
415,868,000 
490,560,000 
399,262,000 
611,780,000 
515,949,000 
396,131,725 
460,267,416 
'467,102,947 
427,684,346 
530,149,168 
675,148,705 
547,303,846 
522,229,505 
748,460,218 
670,063,008 
637,821,835 
552,399,517 
692,979,4S9 
735,260,970 
634,087,000 
664,602,000 
683,349,697 
683,349,697 
635,121,000 
621,338,000 

Cents. 
77.1 

68.7 
68.1 
92.6 
69.8 
83.8 
83.9 
62.4 
53.8 
49.1 
50.9 
72.6 
80.8 
58.2 
58.4 
61.9 
62.4 
63.0 
69.5 
92.4 
74.8 
66.7 
87.4 
92.8 
99.0 
98.6 
88.3 
87.4 

Bushels. 

629,409,000 
624,134,000 
659,618,000 
701,735,000 
751,515,000 
523,621,000 
738,394,000 
661,035,000 
638,854,850 
662,036,928 
824,443,537 
707,346,404 
698,767,809 
730,906,643 
796,177,713 
809,125,989 
736,808,724 
987,842,712 
784,094,199 
894,595,552 
953,216,197 
964,904,522 
754,443,000 
807,156,000 
1,007,129,000 
1,007,129,000 
1,186,341,000 
922,298,000 

Cents. 
28.5 

1886 

29.8 

1887 _     _- 

30.4 

1888 

27.8 

1889 

22.9 

1890    

42.4 

1891       ._         

31.5 

1892     __. 

31.7 

1893       

29.4 

1894 

32.4 

1895 

19.9 

1S96__     

18.7 

1897 

1898 

1899    

21.2 
25.5 
24.9 

1900  __.  . 

25.8 

1901 

39.9 

1902 

30.7 

1903  _  .          

34.1 

1904 

1905 

31.3 
29.1 

1906-.     .     

31.7 

1907 

1908 

44.3 

47.2 

1909 

40.5 

1909 

40.2 

1910    

34.4 

1911 

45.0 

The  American  people  will  sustain  with  practical  unanimity  the 
action  taken  by  President  Taft  in  notifying  the  Russian  Govern- 
ment that  the  treaty  of  1832  will  be  abrogated. — New  York  "World" 
(Dem.). 

The  way  to  help  labor  is  to  provide  it  with  steady  work  and 
good  wages,  and  then  to  have  those  good  wages  always  paid  in 
good  money. — Major  McKinley,  to  delegation  of  workmen,  August 
24,    1890. 

Our  political  campaigns  must  be  conducted  upon  the  high  plane 
of  principle,  in  which  the  fullest  discussion  of  policies  shall  be 
encouraged,  but  in  which  misrepresentation  and  abuse  shall  have 
no  part. — Postmaster-General  Cortelyou,  at  the  annual  banquet 
of  the  Lincoln  Republican  Club,  Grand  Rapids,  Mich.,  February 
12,    1906. 

The  Wilson  bill  was  enacted  into  law.  The  proof  of  the 
pudding  is  in  the  eating.  There  were  three  million  men 
working  in  the  productive  industries  and  on  their  pro- 
ducts that  were  thrown  out  of  employment.  They,  learn- 
ing through  their  stomachs  as  to  the  effects  of  it,  helped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  andmountains  will  fall  upon  you  again,  I  hope, 
in    1912,   and   I   know   in    1914   and    1916.— Ex-Speaker    Cannon. 

We  shall  continue  our  American  system  of  protection  developed 
and  perfected  by  the  Republican  Party.  We  shall  continue  to 
raise  a  large  portion  of  our  revenues  and  at  the  same  time  protect 
our  labor  and  industries  by  adequate  and  equitable  duties  on  com- 
peting imports.  We  shall  continue  to  maintain  the  highest  wage 
scale  on  earth  and  keep  our  standard  of  living  the  best  of  all 
nations  through  the  home  market  that  is,  and  I  believe  always 
will   be,  the  envy  of  the  civilized  world. — Hon.  James   S.   Sherman. 

Under  our  policy  of  free  trade  we  have  lost  that  commercial 
and  industrial  superiority  we  acquired  under  the  policy  of  strict 
protection.  Our  policy  of  direct  taxation  bears  heavily  upon  our 
industries  and  reacts  on  the  working  classes  in  reduction  of  wages 
and  employment.  Our  agriculture  has  been  ruined  and  our  indus- 
tries are  struggling  hard  for  existence.  Other  nations,  under  a 
policy  of  strict  protection,  are  beating  us  in  the  race  of  competi- 
tion, not  only  in  neutral,  but  in  our  own  markets. — Sir  Guilford 
L.    Molesworth   on   Free    Trade   in    England. 


;<)4 


STAT1  .STICA L  STATKAI ENTS. 


Cotton  production  and  manufacturing  in  the  United  States,  also 

import's  and  exports  of  cotton  manufactures. 

[From  the  Statistical  Abstract  of  the  United  States.] 


1884. 
1885. 
1889. 
1887_ 
1888_ 
1889. 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
189S. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 
1908. 
1909. 
1910. 
1911. 


Total 
com- 
mer- 
cial 
crop 


Taken  for  home  con- 
sumption 


By 

North- 
ern 
mills 


By 

South- 
ern 
mills 


Total 


In  thousands  of  bales 


5,713 

1,537 

340 

1,877 

5,706 

1,437 

316 

1,753 

6,575 

1,781 

381 

2,162 

6,499 

1,687 

401 

2,088 

7,01f 

1,805 

456 

2,261 

6,939 

1,790 

480 

2,270 

7,297 

1,780 

545 

2,325 

8,674 

2,027 

613 

2,610 

9,018 

2,172 

684 

2,856 

6,664 

i,we 

723 

2,375 

7,532 

1,580 

711 

2,291 

9,837 

2,019 

852 

2.871 

7,147 

1,605 

900 

2,505 

8,706 

1,793 

999 

2,792 

11,216 

2,211 

1,254 

3,455 

11,2.56 

2,217 

1,415 

3,632 

9,422 

2,047 

1,597 

3,644 

10,339 

1,964 

1,583 

3,547 

10,768 

2,036 

2,017 

4,083 

10,674 

1,966 

1,958 

3,924 

10,002 

2,046 

1,889 

3,935 

13,654 

2,292 

2,270 

4,552 

11,234 

2,335 

2,292 

4.627 

13,540 

2,510 

2,495 

5.005 

11,441 

1,885 

2,079 

3,964 

13,817 

2,688 

2,555 

5,2*3 

10,513 

2,012 

2,214 

4,2.56 

12,075 

1,994 

2,307 

4,301 

Raw 

cotton 

imported 


7,019,492 

5,115,680 

5,072,334 

3, 924,. 531 

5,497,592 

7,973,039 

8,606,010 

20,908,817 

28, 663, 769 

43,367,952 

27,705,949 

49,332,022 

55,350,520 

51,898,926 

52,660,363 

50,153,158 

67,398,521 

46,631,283 

98,715,680 

74,874,425 

48,810,590 

60,508,548 

70,963,633 

104,791,784 

71,072,855 

86,518.024 

86,037,691 

113,768,313 


Exports 
of  manu- 
factures 
of  cotton 


11,885,211 
11.836.591 
13,959,934 
14,929,312 
13,013,189 
10,212,614 
9,999,277 
13,601,857 
13,295,277 
11,809,355 
14,340,886 
13,789,810 
16,837,396 
21,037,678 
17,024,092 
23,536,914 
21,003,087 
20,272,418 
.32,108,362 
32.216.301 
22,403.713 
49,666.080 
53,944.033 
82,305,412 
25,177,758 
31,878,566 
33,897,097 
40,851,918 


Imports 
oi  manu- 
factures 
of  cotton 


29,074, CE6 
27.197,211 
29,709,266 
28,910,353 
28,917,799 
26.805,942 
29,918,055 
29,712,624 
28,323,811 
33,560,293 
22,315,517 
33,193,625 
32,137,501 
34,429.863 
27,2(7,300 
32,054,434 
41,296,239 
40,246,935 
44,460,126 
52,4*2,75.5 
49,524,246 
48,919,936 
63.043,322 
73,704,636 
68,379,781 
63,231.963 
68.0-i2.7Sl 
66,996,551 


The  theory  of  free  trade  between  nations  Is  as  fallaelons,  im- 
practicable and  utterly  absurd  as  is  that  of  free  love  between 
families. — Hon.    B.   F.   Jones. 

Not  open  mints  for  the  unlimited  coinage  of  the  silver  of  the 
world,  but  open  mills  for  the  full  and  unrestricted  labor  of  the 
American  workingmen. — Major  MeKinley's  letter  of  acceptance. 

Abating  none  of  our  interest  in  the  home  market,  let  us  move 
out  to  new  fields  steadily  and  increase  the  sale  for  our  products 
in  foreign  markets. — President  McKlnley,  to  Commercial  Club, 
Cincinnati,   Ohio,   October  30,   1897. 

I  believe  it  Is  a  good  deal  better  to  open  the  mills  of  the 
TJnited  States  to  the  labor  of  America  than  to  open  the  mints  of 
the  United  States  to  the  silver  of  the  world. — Major  MeKinley,  to 
his  comrades  of  the  Twenty-third  Ohio  Regiment,  at  Canton, 
August    12,    1806. 

Any  unjust  discrimination  In  the  terms  upon  which  transporta- 
tion of  freight  or  passengers  is  u Horded  an  individual  or  a  locality 
paralyzes  and  withers  the  business  of  the  individual  or  the  locality 
exactly  as  the  binding  of  the  arteries  and  veins  leading  to  a 
member  of  the  human  body  destroys  its  life. — Hon.  Win.  H.  Taft, 
at   Columbus,   Ohio. 

Instead  of  making  a  panics  the  national  policy  of  ending  the 
lawlessness  of  corporations  in  Interstate  commerce,  and  of  taking 
away  their  power  of  issuing,  without  supervision,  **tock*  ai.d  bond*, 
will  produce  a  change  in  their  management  and  remove  one  fruit- 
ful cause  for  loss  of  public  confidence. — Hon.  Wm.  H.  Taft,  to 
Merchants'    and    Manufacturers'    Association,    Boston,    Mums. 

But  the  most  gratifying  feature  of  this  picture  of  banking  and 
financial  conditions  in  our  country  Is  the  fnri  that  deposits  in 
savings  hanks — those  institutions  for  the  safe-keeping  of  the 
earnings  of  worktngnien  and  widows  and  orrhans  nnd  children  of 
the  country — have  increased  from  9580,000,000  In  1S70  to  $3,500,- 
000,000,  in  100S.  What  say  you  business  men  of  the  fi  ture  of  a 
country  whose  workiugmen  and  working  women  and  children 
have  three  and  a  half  billion  dollars  laid  aside  for  a  "rainy  day." 
— O.  P.   Austin. 


STATISTICAL  STATEMENTS. 


305 


Production  and  average  prices  of  middling  cotton,  and  prices  of 
the  staple  manufactures  of  cotton,  in  the  New  York  market 
each  year,  from  1880  to  1910. 

[From  the  Statistical  Abstract.] 


Calendar   Year. 


500- lb. 

Bales. 
6.605,7.50 

1881 i     5,466,048 

188? j     6,»4&,756 

1883 5.713,200 


1834. 
1885. 


1S87. 
1888. 
18S9. 
1890. 
1891. 
1892. 


5.682,000 
6,575,691 
6,506,087 
7,046,833 


7.472,511 
8.652,597 
9,035,379 
6,700,365 

1893 !     7,493,000 

1894 9,901,281 


1*95 

1896 

1897 


1900 

1901 

1902 


7,161.094 
8,532.706 

10,897,857 
11,139,206 

9,507,786 
10,245,602 

9,748,546 
10.784,473 


1903__ I  10,015,721 


1904 

1905 

19^6 

1907 

1908 

1909 

1910 

1911 _. 


13,697,310 
10.725,602 
13,305.265 
11,325.882 
13.432,131 
10,386,209 
11,965,962 


bo 

a 

H* 

a> 

13 

B 
CO     * 

T3 

"2  « 

C  A 

£>> 

T3   (H 

IN 

«  a 

s 

c» 

Cents 

Cents 

11.51 

8.51 

12.03 

8.51 

11.56 

8.45 

11.88 

8.32 

10.88 

7.28 

10.45 

6.75 

9.28 

6.75 

10.21 

7.15 

10.03 

7.95 

10.65 

7.00 

11.07 

7.00 

8.60 

6.83 

7.71 

6.50 

8.56 

5.90 

6.94 

5.11 

7.44 

5.74 

7.93 

5.45 

7.00 

4.73 

5.94 

4.20 

6.88 

5.28 

9.25 

6.05 

8.75 

5.54 

9.00 

5.48 

11.18 

6.25 

11.75 

7.13 

9.80 

7.00 

11.50 

7.25 

12.10 

7.62 

10.62 
12T68 

6.75 
7.37 

15.11 

7.87 

13.01 

7.93 

-a 

V  S3 


2  a 


Cents 
8.51 
8.06 
8.  "5 
7.11 


6.25 
6.58 
6.75 
6.75 
6.75 
6.41 
5.60 
5.72 
5.07 
5.69 
5.48 
4.75 
4.10 
5.13 
5.95 
5.48 
5.52 
6.37 
7.31 
7.90 
7.37 
7.62 
7.15 
7.50 
8.00 
8.06 


Cents 

12.74 

12.74 

12.95 

IK.  93 

10.46 

10.37 

10.65 

10.88 

10.94 

10.50 

10.90 

10.64 

10.25 

9.75 

9.50 

9.85 

9.50 

9.25 

8.00 

9.50 

10.75 

10.25 

10.50 

10.75 

10.50 

9.00 

10.93 

13.00 

11.54 

11.45 

12.00 

11.10 


"5- 

cB  >> 

£  a 


Cents 
7.41 
7.00 
6.50 
6.00 
6.00 
6.00 
6.00 
6.00 
6.50 
6.50 
6.00 
6.00 
6.25 
5.25 
4.90 
5.25 
4.66 
4.70 
3.96 
4.25 
5.00 
4.62 
5.00 
5.00 
5.00 
4.75 
5.12 
6.00 
5.37 
5.08 
5.62 
5.24 


a  *-< 

_-  a 


*S 


Cents 
4.51 
3.95 
3.76 
3.60 
3.36 
3.12 
3.31 
3.33 
3.81 
3.81 
3.34 
2.95 
3.39 
3.30 
2.75 
2.86 
2.60 
2.48 
2.06 
2.69 
3.21 
2.84 
3.11 
3.25 
3.44 
3.13 
3.63 
4.62 
3.50 
3.67 
3.87 
3.54 


a  Years  ending  August  31.     Compiled  by  Mr.  A.  B.  Shepperson,  of  New  York. 

b  Including  1881   and   since,    the  price   of  standard  drillings  are  net;  raw  cotton 

prices  are  also  net  for  the  entire  period. 


We  !*h«ll  always  need  protective  duties  as  long  as  our  people 
Insist  upon  a  higher  standard  of  wages  and  scale  of  living  than 
prevail    abroad. — Jas.   M.    Swauk. 

The  influence  of  a  free  press  must  not  be  Impaired,  nor  must 
the  great  body  of  American  newspapers— among  the  noblest 
agencies  of  enlightenment  and  civilisation— be  judged  by  a  few 
who  have  prostituted  their  high  calling  to  ignoble  uses.— Hon. 
George    B.    Cortelyou,    at    Urbana,    111.,   June    7,    1005. 

We  want  no  slave  labor.  Two  million  men  with  their  blood 
wiped  away  slavery  forever.  We  want  no  labor,  either  white  or 
black,  in  a  virtual  state  of  serfdom.  Labor  must  be  free,  with 
all  the  prerogatives  which  pertain  to  freedom. — Hon.  C.  W.  Fair- 
banks,  at   Kansas   City,   Mo.,   September  1,   1002. 


It  is  easy  and  it  often  seems  expedient  to  yield  to  the  outcry 
of  the  hour;  but  what  the  thoughtful  people  of  America  demand 
of  an  Official  is  that  he  shall  set  his  face  like  flint  against  it  If 
his  conscience  or  his  experience  convinces  him  that  it  is  a  mis- 
taken cry. — 'Hon.  George  B.  Cortelyou,  at  Urbana,  111.,  June  7,  1005. 

The  complaints  that  the  courts  are  made  for  tlie  rich  and  not 
for  the  poor  has  ifo  foundation,  in  fact,  in  the  attitude  of  thej 
courts  upon  the  merits  of  any  controversy  which  may  come  before 
them,  for  the  judges  of  this  country  are  as  free  from  prejudice 
in  this  respect  as  it  is  possible  to  be. — Hon.  Win.  H.  Taft,  to  the 
Civic    Forum,   New    York    City. 


306 


STATISTICAL  STATEMENTS. 


Report  of  the  United  States  Government  on  sheep  raising  from 
1878  to  1898,  inclusive,  and  reports  of  the  Department  of 
Agriculture. 


Year. 


The  Morrill  tariff: 

1878.. 

1879 


1881 

1882 

The  tariff  of  1883: 

1883 

1884 

1885 


1887 

]888 

1889 

The  McKinley  tariff: 


1891 

1892 
The  Wilson'tariff. 
1893 


free  trade  in  wool. 


1895. 


The  Dingley  tariff: 
1897— 


1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907. 

1908 

1909"  (Census  "oi'April"  18th) "~ 
The  Payne  tariff: 

1910 

1911 


Number 
of  sheep. 


38,123,800 
40, 765, £00 
43,576,899 
45,016,224 
49,237,291 

50,6/6,626 
50,360,243 
48,322,331 
44,759,314 
43,544,755 
42,599,079 
44,336,072 

43,431,136 
44,938,365 
47,273,553 

45,048,017 
42,294,064 
38,298,783 
36,818,643 

37,656,960 
39,114,453 
41,883.065 
59,756,718 
62,039,091 
63,964,876 
51,630,144 
45,170,423 
50,631,619 
53,240,282 
53,631,000 
56,084,000 
52,447,861 

53,633,000 
52,362,000 


Average 

price 
per  head. 


$2.07 
2.21 
2.39 
2.37 
2.53 

2.37 
2.14 
1.91 
2.01 
2.05 
2.13 
2.27 

2.50 
2.58 
2.66 

1.98 
1.58 
1.70 
1.82 

2.46 
2.75 
2.93 
2.98 
2.65 
2.63 
2.59 
2.82 
3.54 
3.84 
3.88 
3.43 
4.08 

3.91 
3.46 


Total 
Value. 


$79,023,984 

104,070,759 
106,594,954 
124,365,835 

119,902,706 
107,960,650 
92,443,867 
89,872,839 
89,279,926 
90,640,369 
100,659,761 

108,397,447 
116,121,290 
125,909,264 

89,186,110 
66,685,767 
65,167,735 
67,020,942 

92,721,133 
107,697,530 
122,665,913 
178,072,476 
164,446,001 
168,315,750 
133,530,009 
127,331,850 
179,056,144 
204,210,129 
211,736,000 
192,632,000 
(a) 

209,535,000 
181,170,000 


a  The  Bureau  of  Statistics,  Department  of  Agriculture,  estimated  the  value 
of  sheep  per  head  on  January  1,  1910,  at  $4.08. 


You  cannot  help  the  farmer  by  coining  more  silver;  he  can  only 
be  helped  by  more  consumers  for  his  products. — Major  McKinley, 
to   delegation   of   farmers,   August   24,   1896. 

The  man  or  party  that  would  seek  to  array  labor  against 
capital  and  capital  against  labor  is  the  enemy  of  both.— Major 
McKinley,   at   Canton,    September   18,   1896. 

It  is  true,  as  Peter  Cooper  well  said:  "No  goods  purchased 
abroad  are  cheap  that  take  the  place  of  our  own  labor  and  our 
own  raw  material."— H.  K.  Thurber,  in  the  "American  Economist." 

The  Republican  party  will  continue  to  be  a  protectionist  party 
and  the  American  people  a  protectionist  people.  And  that  pro- 
tection must  apply  to  every  section,  every  industry  and  every 
class. — Hon.    James    S.    Sherman. 

The  success  of  the  United  States  in  material  development  is 
the  most  illustrious  of  modern  times.  It  is  my  deliberate  judg- 
ment that  the  prosperity  of  America  is  due  mainly  to  its  system 
of   protective   laws. — Prince   Bismarck. 

The  rich  manifestations  of  our  commercial  power,  our  military 
and  naval  strength,  great  and  splendid  as  they  are,  are  not  to  be 
counted  when  compared  with  the  moral  and  intellectual  grandeur 
of  our  people.— Hon.  C.  W.  Fairbanks,  at  Baldwin,  Kims.,  June  7. 
1901. 


I  do  not  apologize  for  my  position  touching  the  protective? 
policy.  The  Wilson  bill  was  enacted  into  law.  Some  of  us  recalled 
what  that  bill  did,  or  was  the  most  natural  factor  in  doing.  It 
closed  and  bankrupted  the  entire  industries  of  the  country.— Ex- 
Speaker  Cannon. 


STATISTICAL  STATEMENTS. 


307 


The  textile  industries  of  the  United  States  at  decennial  periods, 

1850  to  1910. 

[Compiled  from  Census  Report.] 


Num- 
ber 

t-, 

&   OS    fl 

fl  +*  <v 

s  m  3 

fl  «  H 

Capital. 

of 
wage 

Wages. 

Cost  of 

materials. 

Value  of 
products. 

OS 

earn- 
ers. 

Wool    manu- 

facture (a) 

1850 

1,760 

$32,516,366 

47,763 

$29,246,696 

$49,636,881 

1860 

1,673 

42,849,932 

59,522 

$13,361,602      46,649,365 

80,734.606 

1870 

3,456 

132,382,319 

119,859 

40,357,235!  134,154,615 

217,668,826 

1880 

2,689 

150,091,869 

161,557 

47,389,087 

164,371,551 

267,252,913 

1890 

2,489 

296,494,481 

213,859 

70,917,894 

203,095,572 

337,768,524 

1900 

2,335 

392,040,353 

242,495 

82,292,444 

232,230,986 

392,473,050 

1905 

2,292 

477,525,222 

283,691 

102,333,548 

319,154,878 

517,492,142 

1910 

2,498 

669,847,000 

331,304 

132,703,000 

432,682,000 

707,310,000 

Cotton 

manufac- 

1850 

1,094 

74,500,931 

92,286 

34,835,056 

61,869,184 

1860 

1,091 

98,585,269 

122,028 

"23^940408 

57,285,534 

115,681,774 

1870 

956 

140,706,291 

135,835 

39,044,132!  111,736,936 

177,489,730 

1880 

756 

208,280,346 

174,659 

42, 040, 510 !  102,206,347 

192,090,110 

1890 

905 

354,020,842 

218,376 

66,024,538    154,912,979 

267,981,724 

1900 

1,055 

467,240,157 

302,861 

86, 689, 752 1  176,551,527 

339,200,320 

1905 

1,154 

613,110,655 

315,874 

96,205,796    286,255,303 

450,467,704 

1910 

1,324 

822,238,000 

378,880 

132,859,000 

371,009,000 

628,392,000 

Silk     manu- 

facture   _. 

1850 

67 

678 ^ 300 

1,743 

1,093,860 

1,809,476 

1860 

139 

2,926,980 

5,435 

~~~1~650~224 

3,901,777 

6,607,771 

1870 

86 

6,231,130 

6,649 

1,942,286 

7,817,559 

12,210,662 

1880 

382 

19,125,300 

31,337 

9,146,705 

22,467,701 

41,033,045 

1890 

472 

51,007,537 

49,382 

17,762,441 

51,004,425 

87,298,454 

1900 

483 

81,082,201 

65,416 

20,982,194 

62,406,665 

107,256,258 

1905 

624 

109,556,621 

79,601 

26,767,943 

75,861,188 

133,288,072 

1910 

852 

152,158,000 

99,037 

38,570,000 

107,767,000 

196,912,000 

Dyeing     and 

fl  n  i  shing 

textiles     _ 

1850 

104 

4,818,350 

5,105 

11,540,347 

15,454,430 

1860 

124 

5,718,671 

7,097 

~~~2~66l~52§ 

5,005,435 

11,716,463 

1870 

292 

18,374,503 

13,066 

5,221,538 

99,539,992 

113,017,537 

1880 

191 

26,223,981 

16,698 

6,474,364 

13,664,295 

32,297,420 

1890 

248 

38,450,800 

19,601 

8,911,720      12,385,220 

28,900,460 

1900 

298 

60,643,104 

29,776 

12,726,316|     17,958,137 

44,963,331 

1905 

360 

88,708,576 

35,563 

15,469,205 

19,621,253 

50,8fS,545 

1910 

426 

114,093,000 

44,046 

21,227,000 

35,261,000 

83,556,000 

Flax,     hemp 

and     jute_ 

1890 

162 

27,731,649 

15,519 

4,872,389 

26,148,344 

37,313,021 

190« 

141 

41,991,762 

20,903 

6,331,741 

32,197,885 

47,601,607 

1905 

133 

54,423,531 

24,508 

8,580,785 

44,890,546 

62,939,329 

(c) 
Combined 
textiles    _- 

1910 

164 

76,020,000 

25,820 

9,133,000 

40,915,000 

61,020,000 

1850 

3,025 

112,513,947 

146,877 

76,715,959 

128,769,971 

1860 

'  3,027 

150,080,852 

194,082 

"lo,35S~462 

112,842,111 

214,740,614 

1870 

i  4,790 

297,694,243 

274,943 

86,565,191 

353,249,102 

520,386,764 

1880 

!  4,018 

412,721,496 

384,251 

105,050,666 

302,709,894 

532,673,488 

1890 

4.276 

767,705,310 

517,237 

i  168,488,982 

447,546,540 

759,262,283 

1900 

1  4,312 

1,042,997,577 

661,451 

1  209,022,447 

521,345,200 

931,494,566 

1905 1  4,563 

1,343,324,605 

739,239 

1  249,357,277 

745,783,168 

1,215,036,792 

(c) 

19101  5,264 

1,834,356,000 

879,087 

I  333,592,000 

987,634,000 

1,677,190,000 

(a)  Includes  hosiery  and  knit  goods,    (b)  Includes  cotton  small  wares, 
(c)  The  figures  embrace  establishments   making   fishing  nets  not  previously 
included. 


I  do  not  apologize  for  my  position  touching  the  protective 
policy.  The  Wilson  hill  was  enacted  into  law.  Some  of  us 
recalled  what  that  hill  did,  or  was  the  most  natural  factor 
in  doing.  It  closed  and  bankrupted  the  entire  industries 
of    the    country. — Ex-Speaker    Cannon. 

The  dollar  paid  to  the  farmer,  the  wage-earner,  and  the  pen- 
sioner must  continue  forever  equal  in  purchasing  and  debt-paying 
power  to  the  dollar  paid  to  any  government  creditor. — Maj.  McKin- 
ley  to  Notification  Committee,  1896. 

The  difficulty  with  the  Democratic  Party  and  the  reason  why  the 
American  people  thus  far  have  manifested  their  distrust  of  it  is 
because  it  has  no  policy  which  the  country  can  depend  upon.  Its 
whole  stock  in  trade  is  that  of  irresponsible  criticism  and  obstruc- 
tion, but  when  charged  with  the  responsibility  for  doing  anything 
it  utterly  fails. — Hon.  Wm.  H.  Taft,  at  Greensboro,  N.  C. 


308 


STATISTICAL  STATEMENTS. 


Production  of  cane  and  oeet  sugar  in  the  principal  producing 
countries  of  the  world  for  the  sugar  year  1910-11* 


Countries. 

Cane  sugar 
production. 
Gross  tons. 

Countries. 

Beet  sugar 
produc- 
tion. 
Gross  tons. 

1,229,100 
1,483,451 
506,096 
287,00) 
217,757 
229,584 
300,000 
4,158,895 

Germany 

2,529,385 
1,517,631 

Hawaiian  Islaads  

Brazil  _._ 

France   i 

703,110 

2,081,575 

275,575 

Mauritius  

Australia    

Holland 

211,307 

Louisiana    

All  other 

570,834 

All  other — 

Total           

8,411,883 

7,889,417 

Total.. 

*  Figures  for  caue  sugar  production  taken  from  Willett  &  Gray's  Sugar  Trade 
Journal,  March  28,  1912;  figures  for  beet  sugar  production  taken  from  Die 
Deutsche  Zuckerindustrie. 


Annual  expenditures  of  the  principal  nations  of  the  world, 

showing  relative  growth  since  1890. 
» 
[From  official  reports  of  the  respective  countries.] 


tn 

Franoe 
(Years  end- 

Italy 
(Years 

Russia 
(Years  end- 

Germany 
(Years 

United 

Kingdom 

( Years 

ending 

March  31) 

United 
States  (c) 
( lears 
ending 
June  30) 

| 

■  Decem- 

ending 

ing  Decem- 

ending 

•* 

ber  31) 

June  30) 

ber  31) 

March  31) 

Dollars 

Dollars 

Dollars 

Dollars 

Dollars 

Dollars 

1891. — 

628,827,008 

357,522,356 

596,861,356 

378,859,277 

326,951,939 

355,372,685 

1892 

652,408,549 

346,645,639 

549,222,382 

356,620,795 

437,633,508 

315,023,331 

1898- — 

666,027,675 

335,643,577 

537,691,667 

358,790,355 

439,811,714 

383,477,954 

1891 

671,63-5,212 

369,044,948 

605,291,231 

366,963,965 

444,325,300 

367,525.2-0 

1895- 

662,765,952 

348,743,946 

795,388,426 

386,149,407 

457,053,549 

353,195,298 

1896 

664,857,114 

355,387,625 

767,410,468 

379,572,920 

475,770,243 

352.179,446 

1897— 

680,138,588 

336,856,554 

769,718,085 

387,674,011 

493,836,210 

365,774,160 

1898 

680,844,255 

334,436,951 

912,688,680 

415,568,491 

500,938,015 

443,338,583 

1899— 

692,758,246 

334,380,560 

919,332,840 

441,658,409 

526,313,123 

605,072,180 

1900—. 

723,163,103 

336,344,509 

972,946,310 

466,620,682 

650,760,094 

487,713,792 

1901—. 

724,887,518 

342,219,821 

965,242,385 

522,886,214 

893,451,353 

509,967,353 

1902— 

713,970,225 

364,739,527 

1,116,095,473 

553,221,885 

951,608,850 

471,190,838 

1903.— 

694,265,063 

361,753,279 

1,085,552,440 

552,295,493 

897,789,955 

50x^,098.007 

1904 

702,335,904 

358,298,730 

1,409,914,024 

561,038,066 

714,677,368 

532,237,821 

1905 

699,219,377 

367,244,773 

1,650,447,749 

492,195,257 

690,831,293 

563,360,094 

1906— . 

715,874,065 

482,235,816 

1,654,539,181 

522,445,272 

731,986.077 

549,405,425 

1907 

a739,928,284 

415,758,805 

1,330,043,366 

569,414,833 

728,211,692 

551,705,129 

1908—. 

754,6S4,688 

435,933,124 

1,368,191,644 

668,748,346 

738,793,555 

621,102,391 

1909 

773,008,361 

474,824,755 

1,342,889,094 

662,293,548 

741,130,940 

662,324,445 

1910 

807,778,819 

485,018,190 

1,337,280,022 

777,443,791 

768-',  637, 449 

659. 705.391 

1911 

846,587,201 

524,780,118 

bl,3S7,075,920 

1*579,199,902 

837,016,913 

654,137,998 

1912 

0469,467,096 

bl, 532, 254, 832 

b696,100,404 

Arraying  labor  against  capital  is  a  public  calamity  and  an 
irreparable  injury  to  both. — Major  McKlnley,  to  Commercial 
Traveling   Men's    Republican    Club,    September   241,    1806. 

I  do  not  apologise  for  my  position  touching  the  protective 
policy.  The  Wilson  hill  was  enacted  into  law.  Some  of  us 
recalled  what  that  bill  did,  or  was  the  most  natural  factor 
in  doing.  It  closed  and  bankrupted  the  entire  industries 
of  the  country.— Ex-Speaker  Cannon. 
■ 

Remembering  those  Republican  promises  and  ihelr  fulfillment 
in  the  years  since,  calling  to  mind  the  unfulfilled  Democratic 
promises  and  the  bitter  years  of  1893-1 SOU,  what  will  you  gain  by- 
voting  the  Democratic  ticket.— Representative  Chas.  Dick,  of  Ohio, 
in   Congress,  January  5,  1004. 

The  Wilson  hill  was  enacted  into  law.  The  proof  of  the 
pudding  is  in  the  eating.  There  -were  three  million  men 
working  in  the  productive  industries  and  on  their  pro- 
ducts that  -were  thrown  out  of  employment.  They,  learn- 
ing through  their  stomachs  as  to  the  effects  of  it,  heKped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  and  mountains  will  fall  upon  you  again,  I  hope, 
In    1912,   and    I    know   in    1914   and    191C— Ex-Speaker   Caifnon. 


STATISTICAL  STATEMENTS. 


309 


Total  expenditures  and  per  capita  expenditures  of  the  principal 

countries  of  the  world,  in  the  latest  year  for  which    figures 

are  available. 

[Figur.es  are  chiefly  for  1911.] 


Countries 


Argentina  

Australian   Commonwealth 

Belgium  

Canada   

Cuba  

Prance  

Germany  

Italy   

Japan  

Netherlands 

Portugal  

Russia    

Spain    

Sweden  

United  Kingdom 

United   States    


Population 


6,989,000 
4,456,000 
7,517,000 
7,082,000 
2,159,000 
39,602,000 
64,926,003 
34,687,000 
50,752,000 
5,858,000 
5,423,000 
160,748,000 
19,503,000 
5,522,000 
45,868,000 
93,983,000 


Expenditure 


$137, 
36. 

127 ; 
79, 
40, 

846, 


85, 

81. 

1,532 

217 

61 

837. 

g964, 


394,000 
496,000 
026,000 
412,000 
593,000 
.587,000 
100,000 
467,000 
314,000 
930,000 
131,000 
256,000 
745,000 
080,000 
017,000 
085,555 


Per  capita 
expenditure 


a  Appropriations  passed, 
b  Budget  estimates. 

c  Ordinary  disbursements,  exclusive    of  premiums,  principal  or  public  debt, 
and  disbursements  for  postal  service  paid  from  revenue  thereof. 
g  Gross  disbursements.     Per  capita  on  ordinary  disbursements,   $6.96. 


Protection  creates  a  home  market,  without  which  the  culti- 
vators of  land  in  America  would  he  but  little  better  off  than  our 
aborigine**. — Hen.    J.    S.    Morrill. 

The  policy  of  expansion  is  what  distinguishes  the  administra- 
tion of  MeKinley  and  adds  another  to  the  list  of  patriotic  victories 
of  the  Republican  Party.  By  this  policy  the  United  States  has 
become   a   world   power. — Hon.   Wm.   H.   Taft,   at    Kansas    City,   Mo. 

As  a  party  shows  itself  homogeneous,  able  to  grasp  the  truth 
with  respect  to  new  issues,  able  to  discard  unimportant  differences 
of  opinion,  sensitive  with  respect  to  the  successful  maintenance 
of  government,  and  highly  charged  with  the  responsibility  of  its 
obligation  to  the  people  at  large,  it  establishes  its  claim  to  the 
confidence  of  the  public  and  to  its  continuance  in  political  power. 
— Hou.  Wm.   H.  Taft,   at   Kansas   City,   Mo. 

We  stand  with  Abraham  Lincoln,  who  said,  in  his  ffrst  in- 
augural: ,4A  majority  held  in  restraint  by  constitutional  checks 
and  limitations  and  always  changing  easily,  with  deliberate 
changes  of  popular  opinion  and  sentiment,  is  the  only  true  sover- 
eign of  a  free  people.  Who  ever  rejects  it  does  of  necessity  fly  to 
anarchy  or  despotism. " — Senator  Root,  to  Republican  National  Con- 
vention, 1912. 

Only  twice  in  all  that  remarkable  history  of  forty-eight  years 
have  we  lost  the  confidence  of  the  people  of  the  United  States  to 
the  point  of  their  turning  over  the  government  to  a  Democratic 
executive.  I  venture  to  say  that  neither  in  this  nor  in  any  other 
country  can  be  disclosed  such  a  remarkable  record  of  arduous 
deeds  done  as  in  that  history  of  a  half  century  of  the  Republican 
Party. — Hon.    Wm.    H.   Taft,    at    Kansas    City,    Mo. 

The  Democrats  are  a  party  having  no  solidarity,  uniting  ele- 
ments that  are  as  unmixable  as  oil  and  water,  and  when  they 
come  to  make  a  government,  should  they  ever  be  elected  to  power, 
the  administration  would  become  as  nerveless  as  a  man  stricken 
with  paralysis,  because  the  radical  difference  between  the  elements 
necessary  to  make  up  the  party  would  be  so  great  as  to  produce 
perfect  stagnation  In  legislative  provision  for  the  emergencies 
which  might  arise.  The  Democratic  Party  te-day,  as  organised, 
is  nothing  but  organized  Incapacity.  Neither  element  of  the  party 
would  have  a  sense  of  responsibility  strong  enough  to  overcome 
its  antagonism  to  the  principles  upheld  by  the  other  faction,  were 
It  to  come  Into  power.— Hon.  Wm.   H.  Taft,  at  Montpelier,  Vt. 

But  the  most  gratifying  feature  of  this  picture  of  banking 
and  financial  conditions  in  our  country  is  the  fact  that 
deposits  in  savings  banks — those  institutions  for  the  safe- 
keeping of  the  earnings  of  workingmen  and  widows  and 
orphans  and  children  of  the  country — have  Increased  from 
$550,000,000  In  1S70  to  $4,212,000,000,  in  1011.  What  say  you 
business  men,  of  the  future  of  a  country  wliose  working- 
men  and  working  women  and  children  have  four  billion 
dollars   laid  aside   for  a   "rainy   day." — O.   P.   Austin. 


310  STATISTICAL  STATEMENTS. 

United  States  Government  finance,  per  capita. 


Year 


1871.. 

1872.. 
1873.. 
1874.. 
1875- 
1876.. 
1877- 
1878.. 
1879.. 
1880.. 
1881- 
1882- 


1884. 
1885. 
1886. 
1887. 
1888- 
1889. 
1890. 
1891. 
1892_ 
1893. 
1894. 
1895. 


1897.. 


1900- 
1901.. 
1902.. 
1903- 
1904.. 
1905_. 
1906.. 
1907.. 
1908.. 
1909.. 
1910.. 
1911- 
1912.. 


Population 
June  1 


Amou'tl 

of 
money 
in  the 
United 
States 
July  1 


555,000 
596,000 
677,000 
796,000 
951,000 
137,000 
3.53,000 
598,000 
866,000 
155,783 
316,000 
495,000 
693,000 
911,000 
148,000 
404,000 
680,000 
974,000 
289,000 
947,714 
844,000 
,086,000 
349,000 
632,000 
,934,000 
,254,000 
,592,000 
947,000 
,318,000 
994,575 
,612,569 
,230,563 
,848,557 
466,551 
,081,545 
,702,533 
,320,539 
,938,527 
,556,521 
,174,515 
,792,509 
,410,503 


Government  finance,  per  capita. 


Dolls. 
18.75 
18.79 
18.58 
18.83 
18.16 
17.52 
16.46 
16.59 
21.15 
23.64 
26.30 
26.85 
27.42 
27.08 
27.38 
27.20 
27.84 
28.20 
27.06 
26.91 
26.23 
26.92 
24.07 
26.70 
26.39 
25.62 
26.63 
28.13 
29.47 
30.66 
31.94 
32.40 
33.31 
34.24 
31.63 
36.26 
36.20 
38.62 
38,31 
37.84 
37.84 
38.16 


Money  I   ^ 
«?*"    ,Treas- 


Year  ending  June  30 


Dolls. 
18.17 
18.27 
18.09 
18.13 
17.16 
16.12 
15.58 
15.32 
16.75 
19.41 
21.71 
22.37 
22.93 
22.65 
23.03 
21.78 
22.45 
22.88 
22.52 
22.82 
23.45 
24.60 
24.06 
24.56 
23.24 
21.44 
22.92 
25.19 
25.62 
26.93 
27.98 
28.43 
29.42 
30.77 

a31.08 
32.32 

a32.22 
34.72 
31,93 

a34.33 
34.20 
34.26 


Dolls. 
56.81 
52.96 
50.52 
49.17 
47.53 
45.66 
43.56 
41.01 
40.85 
38.27 
35.46 
31.91 
28.66 
26.20 
24.50 
22.34 
20.03 
17.72 
15.92 
14.22 
13.34 
12.93 
12.64 
13  ;30 
13.08 
13.60 
13.78 
14.08 
15.55 
14.58 
13.46 
12.24 
11.44 
11.73 
11.77 
11.25 
10.06 
10.55 
11.31 
11.35 
10.83 
10.77 


Inter- 
est on 
public 
debt 


Dolls. 

2.83 

2.56 

2.35 

2.31 

2.20 

2.11 

2.01 

1.99 

1.71 

1.59 

1.46 

1.09 

.96 

.87 

.84 

.79 

.71 

.65 

.53 

.47 

.37 

.35 

.35 

.38 

.42 

.49 

.48 

.47 

.54 

.44 


.24 


Net 
reve- 
nue, 


Dolls. 
9.69 
9.22 
8.01 
7.13 
6.55 
6.52 
6.07 
5.42 
5.60 
6.65 
7.00 
7.68 
7.41 
6.36 
5.76 
5.86 
6.33 
6.32 
6.31 
6.43 
6.14 
5.44 
5.81 
4.40 
4.54 
4.65 
4.85 
5.55 
6.93 
7.43 
7. .56 
7.11 
6.93 
6.59 
6.54 
7.02 
7.70 
6.87 
6.79 
7.48 
7.46 
7.23 


Net 
ex- 
penses 


Dolls. 
7.16 
6.66 
6.84 
7.04 
6.25 
5.87 
5.21 
4.98 
5.46 
5.28 
5.06 
4.92 
4.94 
4.45 
4.63 
4.22 
4.56 
4.32 
4.60 
4.75 
5.56 
5.29 
5.77 
5.43 
5.16 
5.01 
5.10 
6.07 
8.14 
6.39 
6.56 
5.96 
6.26 
6.50 
6.77 
6.49 
6.41 
7.10 
7.45 
7.30 
6.96 
6.85 


a  As  a  result  of  special  investigation  by  the  Director  of  the  Mint  a  reduction 
of  $135,000,000  was  made  in  the  estimate  of  gold  coin  in  circulation  on  July  1, 
1907,  as  compared  with  the  basis  of  previous  years,  and  on  September  1,  1910, 
a  reduction  of  $9,700,000  was  made  in  the  estimate  of  silver  coin. 


The  price  of  wheat  Is  fixed  by  the  low  of  supply  and  demand, 
which  is  eternal;  gold  has  not  made  long  crops  or  short  crops, 
high  prices  or  low  prices. — Mnj.  McKinley  to  Homestead  working- 
iDgmen,    September   12,   189G. 

Protection  furnishes  an  opportunity  for  every  person  to  find 
the  employment  best  adapted  to  his  or  her  genius  and  capacity 
that  will  secure  the  largest  income  or  the  greatest  happiness.-— 
Hon.  J.   S.  Morrill,   in  the  "American   Economist." 

They  tell  us  that  a  protective  tariff  was  only  designed  for  infant 
industries,  that  we  have  outgrown  that  infancy  and  are  no  longer 
in  need  of  the  duties  that  enabled  us  to  get  them  started.  W« 
have  grown,  it  is  true.  Our  great  industrial  coneeriis  nre  monsters 
now,  but  let  me  tell  you,  as  the  hoy  said  who  waited  till  he  had 
grown  up  before  tackling  a  youthful  opponent,  the  other  fellow 
has    grown    up    too. — Hon.    James    S.    Sherman. 


The  Wilson  bill  was  enacted  into  law.  The  proof  of  the 
pudding  is  in  the  eating.  Tlioro  were  three  million  men 
working  in  the  productive  industries  and  on  their  pro- 
ducts that  were  thrown  out  of  employment.  They,  learn- 
ing through  their  stomachs  as  <o  the  effects  of  it,  helped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  and  mountuins  will  fall  upon  yon  again,  I  hope, 
In    1912,   and   I   know   in    1914   and    1910.— Ex-Speaker   Cannon, 


STATISTICAL  STATEMENTS. 


311 


Commercial  failures  and  average  of  liabilities,  1880  to  1911. 
[From  Dun's  Review,  New  York.] 


Calendar  Year. 


1880. 
1881. 
1882_ 
18S3_ 
1884_ 
1885_ 
1886. 
1887. 
1888. 
1889.. 
1890. 
1891. 
1892. 
1893* 
1894* 
1895* 
1896* 
1897. 
1898. 
1899. 
1900.. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907_ 
1908. 
1909.. 
1910. 
1911. 


Total  for  the  Year. 


Number 
of  failures. 


4,735 
5,582 
6,738 
9,184 
10,968 
10,637 
9,834 
9,634 
10,679 
10,882 
10,907 
12,273 
10,344 
15,242 
13,885 
13,197 
15,088 
13,351 
12,186 
9,337 
10,774 
11,002 
11,615 
12,069 
12,199 
11,520 
10,682 
11,725 
15,690 
12,924 
12,652 
13,441 


Number  of 
business  con- 
concerns. 


746,823 

781, 639 

822,256 

863,993 

904,759 

919,990 

969,841 

994,281 

1,046,662 

1,051,140 

1,110,590 

1,142,951 

1,172,705 

1,193,113 

1,114,174 

1,209,282 

1,151,579 

1,058,521 

1,105,830 

1,147,595 

1,174,300 

1,219,242 

1,253,172 

1,281,481 

1,320,172 

1,356,217 

1,391,587 

1,417,077 

1,425,000 

1,468,812 

1,514,997 

1,525,024 


Per  ct. 
of  fail- 
ures. 


0.63 
.71 

.82 

1.06 

1.21 

1.16 

1.01 

.90 

1.02 

1.04 

.98 

1.07 

.88 

1.28 

1.25 

1.09 

1.31 

1.26 

1.10 

.81 

.92 

.90 

.93 

.94 

.92 

.85 

.77 

.82 

1.10 

.88 

.83 


Amount  of 
liabilities. 


$65,752,000 
81,155,932 
101,547,564 
172,874,172 
226,343,427 
124,220,321 
114,644,119 
167,560,944 
123,829,973 
148,784,337 
189,856,964 
189,86S,638 
114,044,167 
346,779,889 
172,992,856 
173,196,060 
226,096,834 
154,332,071 
130,662,899 
90,879,889 
138,495,673 
113,092,376 
117,476,769 
155,444,185 
144,202,311 
102,676,172 
119,201,515 
197,385,225 
222,315,684 
154,603,465 
201,757,097 
191,061,665 


Average 
liabilities. 


$13,886 
14,530 
15,070 
18,823 
20,632 
11,678 
11,651 
17,392 
11,595 
13,672 
17,406 
15,471 
11,025 
22,751 
12,458 
13,124 
14,985 
11,559 
10.722 

9,733 
12,854 
10,279 
10,137 
12,879 
11,820 

8,913 
11,159 
16,834 
14,169 
11,963 
15,947 
14,215 


democratic   and   low   tariff   period. 


Clearing -house  returns  of  the  United  States. 
[From  the  Statistical  Abstract  of  the  United  States.] 


Year. 

New  York  clear- 
ing house. 

Clearing  houses 

of  the 
United  States. 

1886 

1887    - 

$33,374,682,216 
34*872,848,786 
30,863,686,609 
34,796,465,529 
37,660,686,572 
34,053,698,770 
36,279,905,236 
34,421,379,870 
24,230,145,368 

$48,211,643,771 
52,126,704,488 

1888 

1889               

48,750,886,813 
53,501,411,510 

1890_                                       _     

58,845,279,505 

1891 

1892 

57,298,737,938 
60,883,572,438 

1893 

58,880,682,455 

1894- _                                                            -     _ 

45,028,496,746 

1895 

28,264,379,126 
29,350,894,884 
31,337,760,948 
39,853,413,948 
57,368,230,771 
51,964,588,564 
77,020,672,494 
74,753,189,436 
70,833,655,940 
59,672,796,804 
91,879,318,369 

103,754,100,091 
95,315,421,238 
73,630,971,913 
99,257,662,400 

102,553,959,069 
92,420,120,092 

50,975,155,046 

1896 

51,935,651,733 

1897 

54,179,545,030 

189S 

65,924,820,769 

1899 

88,828,672,533 

1900 

84,582,450,081 

1901 

114,819,792,086 

1902 

116,021,618,003 

1903 __ 

113,963,298,973 

1904 

102,356,435,047 

1905 

140,592,087,616 

1906 

1907 

157,681,259,999 
154,662,515,258 

1908 

126,238,694,398 

1909 

158,877,192,100 

1910 _         

168,986,664,000 

1911 . 

159,373,450,000 

The  Republican  Party  was  born  because  of  a  principle,  and  I* 
lias  lived  and  jjjrowu  because  of  principles  too  sound  to  be  over- 
thrown, too  deep   to  be  effaced. — Hon.  James   S.   Sherman. 


312 


STATISTICAL  STATEMENTS. 


Individual  deposits  in  banks  of  all  kinds  in  the  various  8tatest 

1892,  1S96,  1903  and  1911. 

[Prom  Official  Reports  of  tne  Controller  of  the  Currency.] 


States. 

1892. 

1896. 

1903. 

1908. 

1911. 

Maine    

$65,850,798 

$75,804,424 

$112,447,981 

$146,923,084 

$166,162,397 

New  Hamp.   _ 

80,435,557 

71,921,727 

78,453,488 

98,539,134 

111,826,836 

Vermont 

33,748,904 

40,572,077 

56,386,990 

75,330,076 

90,640,124 

Mass _ 

616,598,531 

705,759,418 

938,627,298 

1,142,646.976 

1,356,6^8,047 

Rrode  Island. 

99,066.388 

110,535,846 

155,644,733 

181,779,638 

208,967,789 

Connecticut    - 

165,415  581 

188,712,003 

264,131,827 

341,880,703 

389,240,700 

New    York    __ 

1,417,5E6.006 

1, 694, 236, 106 

2,861,024,291 

3,560,652,264 

4,864,873,583 

New    Jersey  __ 

98,891  294 

115,583,033 

254,960,170 

372,139,970 

477,659,351 

Pennsylvania 

423,548,016 

#59,041, 848 

1,011,947,132 

1,233,298,865 

1,500,658,980 

Delaware    _, 

10,121.401 

7,919,958 

19,592,430 

26,218,589 

30,775,771 

Maryland    

83,219,217 

87,354,355 

144,708,7i2 

188,313,206 

239,290,618 

Dist.    Col.    „ 

15,670.372 

18,677,413 

37,916,326 

47,266,608 

63,679,728 

Virginia    

29,693.509 

28,243,822 

59,993,002 

99,431,201 

129,836,556 

West   Virginia 

11,037,899 

17,745,571 

50,387,589 

82,766,903 

106,151,373 

N.    Carolina  _ 

8,461.372 

9,722,451 

28,224,670 

49. 139/73 

71,580,116 

S.    Carolina- 

9,849,188 

9,890,679 

16,584,452 

39,442,358 

59,510,702 

Georgia     

15,363,576 

10,952,349 

43,053,919 

72,440.279 

109,286,165 

Florida     

5,740,494 

5.531.365 

16,535,101 

31,245,570 

53,815,349 

Alabama 

7,661,424 

6,856,065 

19,963,480 

55,005,862 

69,723,683 

Mississippi    .. 

7,093,530 

8,908.660 

29,174,325 

44,916,385 

68,258,509 

Louisiana     — 

26, 30%  565 

25,306,751 

63,450,271 

80,583,607 

112,071,581 

Texas    

34,120,225 

31,747,215 

80,389,641 

134,383,734 

220,540,412 

Arkansas  

4,563,594 

3,555,383 

14,458,572 

22,566,866 

48,586,338 

Kentucky     

49,603,578 

41,502,038 

68,501,184 

110,941,947 

127,716,835 

Tennessee 

24,543,584 

21,722,670 

62,183,036 

90,951,328 

106,208,004 

Ohio     

175,952,224 

174,954,981 

448,120,819 

644,428,446 

713,077,549 

Indiana 

54,206,771 

52,386,403 

141,601,752 

229,741^12 

292,687,185 

Illinois    

226,801.889 

213.798,711 

522,889,978 

770,013,364 

997,387,065 

Michigan 

107,704,951 

103,670,827 

218,432,300 

293,333.222 

395,016,979 

Wisconsin    ___ 

79,738,823 

68.863,503 

156.140,971 

.    209,018,351 

270,204,906 

Minnesota     __ 

76,795,498 

68,494,642 

185,564,105 

211,052.80? 

292,218,879 

Iowa  

85,460,606 

78,439,707 

211,033,378 

302,368,831 

370,940,096 

Missouri     

117,478,165 

117,150,075 

298,747,005 

343.4'^6.561 

427. 9?8. 429 

N.  Dakota 

8,278,548 

7,032,369 

22,147,222 

41,997,532 

57,305,608 

S.     Dakota- 

7,551,266 

7,216.612 

27,801,725 

54,538,002 

75,151,195 

Nebraska     ___ 

43.770,311 

30,865,894 

80,565,404 

132,278,928 

159,151,858 

Kansas    

38,514,219 

80.529,487 

84,055,110 
32,023,515 

132,412,731 

154.933.703 

Montana    

16.515,264 

16,806,929 

45,953,338 

53,886,820 

Wyoming 

Colorado     

3.167,147 

2,650,866 

7,821,629 

13,422,433 

17,456,170 

33.827,434 

29,966.835 

69,739,278 

101,035,363 

114.547,712 

New    Mexico- 

3,104,956 

2,311,296 

7,249,032 

12,909,901 

17,599,053 

Oklahoma 

723.968 

755,519 

18,677,080 
53,242,953 

57,828,018 

91,937,293 

Washington   _ 

17,807,584 

9,228,848 

127,205,165, 
76.467.767 

155,264,895 

Oregon    

12.647,373 

9,262  021 

26,039,463 

101,136,323 

California 

198,024,954 

202,874,270 

406,532,343 

454,399,192 

711,327,144 

Idaho    

2,006.760 

1,960.292 

7,849.030 

24,271,24© 

30,073,697 

Utah    

9,213.285 

6,366.103 

33,526.202 

38,862,675 

44,833,966 

Nevada  

412.320 

579,731 

4,107.492 

8,858,602 

14,035.498 

Arizona  

758,212 

1,548.074 

8,458,306 

13,368,009 

20,170,950 

Alaska    

893,913 

5,306,906, 

4,467,691 

Totals 

4,665,023,350 

4,945,315,414 

9,520,429,254 

12,764,002,420 

15,866,425,206 

Aggregate,  United  States  only,  $9,530,429,252. 

Annual  increase  in  individual  deposits  

Annual  increase  in  individual  deposits,  1896-1903,  $657,000,000. 


The  civilized  world  substantially  protects  Itself,  thus  forcing: 
ns  to  protect  ourselves. — Hon.  D.  B.  Henderson,  in  the  "American 
Economist." 

The  hum  of  industry  has  drowned  the  voice  of  calamity,  and 
the  voice  of  despair  is  no  longer  heard  In  the  United  States,  and 
the  orators  without  occupation  here  are  now  looking;  to  the 
Philippines  for  comfort.  As  we  oppqsed  them  when  they  were 
standing;  ag-ainst  Industrial  prog~ress  at  home,  we  oppose  them 
now  as  they  are  standing;  ag*ainst  national  duty  in  our  island 
possession   in   the   Pacific— -President   McKinley. 


The  avowed  policy  of  the  National  administration  of  these  two 
Presidents  has  been  and  is  to  govern  the  island.*,  having*  reg*ard 
to  the  Interest  and  welfare  of  the  Filipino  people,  and  by  the 
spread  of  grenernl  primary-  and  Industrial  education  and  by  practice 
In  partial  political  control  to  fit  the  people  themselves  to  maintain 
a  stable  and  well-ordered  government  affording*  equality  of  rig-lit 
and  opportunity  to  all  citizens.— Hon.  Wm.  H.  lain,  in  special 
report   to  the   President 


STATISTICAL  STATEMENTS. 


313 


Number  of  saving*  banks  in  the  United  States,  number  of  de- 
positors, amount  of  savings  deposits,  average  amount  due  each 
depositor  in  the  years  18(10  to  1911,  and  average  per  capita  in 
the   United  States  in   the   years   given. 

[Compiled  in  the  office  of  the  Comptroller  of  the  Currency.] 


1861. 
1862. 
1863. 
1864. 
1865. 
1866. 
1867. 
1868. 
1869. 
1870. 
18.1. 
H72. 
1873. 
1874. 
1875. 
1876 
1877. 
1878. 
1879. 
1880. 
1881- 
1882. 
1833. 
1884. 
1885. 
1886. 
1887. 
1838. 
1839. 
1890- 
1891. 
1892. 
1893. 
1894. 
1895. 
1896 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1900. 
1907. 
1908. 
1909. 
1910. 
1911. 


Numbei      Number 
oi       J  of  depos 
bank*    !     itors. 


278 
185 
289 
•293 
305 
317 
336 
371 
400 
476 
517 
577 
647 
669 
693 
771 
781 
675 
663 
639 
629 
629 
629 
630 

me 

646 

638 

6  it 

8)1 

819 

921 

1.011 

1,059 

1,030 

1,024 

1,017 

983 

980 

979 

987 

1,002 

1,097 

1,076 

1,078 

1,157 

1,237 

1,319 

1,415 

1,453 

1.703 

1,7-59 

1,884 


693,870 
694,487 

787,943 
887,04  6 
976,025 
98J,8l4 
1,067,061 
1,188,262 
1,310.144 
1.466.684 
1,630,816 
1.902, 047 
1,992,925 
2,185.832 
2,-93,401 
2,359  864 
2,368,630 
2,395,314 
2,400.785 
2,268,707 
2,335,582 
2,528,749 
2,710,354 
2,876,438 
3,015,151 
3,071,495 
3,158,950 
3.418,013 
8,8:38,291 
4,021,523 
4,258,893 
4,533,217 
4,781,605 
4,830,599 
4,777,687 
4,875,519 
5,065,494 
5,201,132 
5,385,746 
5.687,818 
6,107,083 
6,358,723 
6.666,672 
7,035,228 
7,305,443 
7,696,229 
8,027,192 
8,588,811 
8,705,848 
8,831,863 
9,142,908 
9,794,647 


Beposits. 


$149, 

ue 

109. 

206 

236, 

242, 

282. 

327, 

392, 

457 

549 

650, 

735 

802, 

864 

924 

941, 

866. 

879 

802, 

819, 

891, 

966 

1,024 

1,073 

1,095 

1,141 

1,235 

1,364 

1,425 

1,524 

1,623 

1,712 

1,785 

1,747 

1.810 

1,907 

1,939 

2,065 

2,230 

2,449 

2,597 

2,750 

2,935 

3,060 

3,261 

3,482 

3,690 

3,660 

3,713 

4,670 

4,212 


,277,504 
729,882 

434.540 
235,202 
5 80, 401 
619,332 
455,794 
,009,452 
781,813 
,675,050 
,874,3.58 
,745,442 
,016,805 
,363,609 
,556,902 
,037,304 
,350,255 
,218,306 
.897,425 
,490,-98 
,106,973 
,961,142 
,797,081 
,856.787 
,294,955 
,172,147 
,530,578 
,247,371 
,196,550 
,230,349 
,844,506 
,079,749 
,769,026 
,150,957 
,961,289 
,597,023 
,156,277 
,376,035 
,631.298 
,366,954 
,547,885 
,094,580 
,177,290 
,204,845 
,178,611 
,236,119 
,137,198 
,078,945 
,553,945 
,405,710 
,486.246 
,583,598 


\veragt 
due 

each  de- 
positor. 


$215.13 
zll.27 
215.03 
232.48 
242.08 
247.35 
264.70 
283.63 
299,80 
312.04 
337.17 
842.13 
363.82 
367.07 
376.98 
391.56 
397.42 
361.63 
366.50 
353.72 
350.71 
352.73 
356.70 
356.29 
355.96 
356.56 
361.36 
361.39 
355.41 
354.40 
358.03 
358.04 
358.20 
369.55 
365.86 
371.36 
376.50 
372.88 
383.54 
392.13 
401.10 
408.30 
412.53 
417.21 
418.89 
423.74 
433.79 
429.64 
420.47 
420.45 
445.20 
430.09 


Average 
per  capi- 
ta in  the 
United 
States 


$4.75 
4.58 
5.18 
6.18 
6.94 
6.98 
7.96 
9.03 
10.62 
12.12 
14.36 
16.45 
18.11 
19.25 
20.20 
21.25 
20.86 
18.69 
18.49 
16.42 
16.33 
17.38 
18.42 
19.09 
19.55 
19.51 
19.89 
21.05 
22.75 
23.25 
24.35 
25.29 
26.11 
26.63 
25.53 
25.88 
26.68 
26.56 
27.67 
29.24 
31.78 
33.45 
34.89 
36.52 
37.52 
39.17 
41.13 
42.87 
41.84 
41.75 
45.05 
44.82 


Protection  steadily  enlarges  the  home  market  for  farm  products. 
— Hon.    L.    R.    Casey. 

Protection  alone  insures  American  labor  against  European 
pauper  wages. — Former  Senator  Casey,  in  the  "American  Econ- 
omist." 

Every  one  knows  that  the  average  American  consumer  pays 
more  than  the  average  British  consumer.  Yet  the  British  con- 
sumer,  in  spite  of  that  advantage,  is  by  no  means  so  well  off  as 
the   American  consumer. — The  London  "Daily  Telegraph." 


In  the  first  place,  it  is  said  that  the  policy  of  the  administration 
has  been  directed  for  the  last  four  years  against  organised  capital, 
and  that  it  has  thereby  frightened  investors.  1  deny  it.  The, 
course  of  the  administration  has  been  directed  against  such  organ- 
ized capital  as  was  violating  the  statutes  of  the  United  Staten — 
and  no  other.  It  had  every  consideration  and  desire  to  aid  and 
assist  organized  capital  which  was  engaged  in  legitimate  business. 
— Hon.  Wm.  H.  Taft,  to  Merchants  and  Manufacturers'  Association, 
Boston,   Mass. 


314 


STATISTICAL  STATEMENTS. 


Depositors,  amount  of  deposits  and  average  deposit  in  all  savings 
banks,  and  average  deposit  per  inhabitant  in  the  principal 
countries  of  the  world,  according  to  latest  available  informa- 
tion, chiefly  1911. 

[From  the  Statistical  Abstract  of  the  United  States.] 


Countries. 

Number  of 
depositors. 

Deposits. 

Average 
deposit. 

Average 
deposit  per 
inhabitant. 

Austria 

3,996,548 
2,808,549 
1,166,607 

13,734,398 

20,616,699 
1,895,303 
7,421,235 
1,921,527 
956.986 
7,691,315 
334,724 
2,118,223 

13,659,636 

1,915,795 

184,359 

1,378,916 

19,013,548 
9,794,647 
6,527,404 

Dollars. 

1,094,961,497 
186,110,990 
174,182,302 

1,040,230,578 

3,729,964,322 
464,923,633 
786,921,337 
102,493,116 
128,040,751 
736,424,971 
42,996,054 
229,151,240 

1,076,265,509 

334,513,540 

57,359,255 

51,478,416 

148,549,729 

4,212,583,598 
576,170,301 

Dollars. 
273.98 

66.29 
149.28 

75.74 
180.92 
245.30 
106.04 

53.34 
133.80 

95.75 
128.45 
108.19 

78.79 
174.61 
312.82 

37.33 

7.81 

430.09 

88.27 

Dollars. 

38  62 

Belgium  (a) 

24  77 

Denmark  (b) 

62.76 

France 

26.48 

Germany  

58.17 

Hungary 

22.47 

Italy  

22.76 

Netherlands  

17.34 

Norway    

Russia    (c) 

54.03 
4.69 

Finland    _ 

14.27 

41.49 

United  Kingdom    (d) 

Australasia    

23.81 
133.08 

Canada    (e) 

8.10 

British   India   

.21 

Japan  

2.91 

United  States   (g) 

All  other 

45.10 

Total 

117,136,419 

15,173,391,139 

129.54 

15.93 

a  Data  for  the  State-controlled  Caisse  Generale  d'Epargne.  Includes  savings 
deposits  with  post-offices.  In  addition,  there  are  four  municipal  and  five  private 
savings  banks,  which  on  December  31,  1909,  had  45,933  depositors,  and  deposits 
to  the  amount  of  $11,169,589. 

b  Exclusive  of  1809  deposits  of  $173,011  in  savings  banks  in  Faroe  Islands, 
and  of  data  for  savings  departments  of  ordinary  banks,  which  comprised  155,160 
accounts  credited  with  $31,370,748  on  March  31,  1910. 

c  Includes  39,883  depositors  in  school  savings  depositories,  credited  with 
$103,000.  The  above  total  is  exclusive  of  $151,058,255  worth  of  securities  held  by 
the  savings  banks  to  the  credit  of  depositors. 

d  Exclusive  of  Government  stock  held  for  depositors,  which  at  the  end  of 
the  year  amounted  to  $112,668,566  in  the  postal  savings  banks  and  to  $12,567,629 
in  the  trustees'  savings  banks. 

e  Exclusive  of  deposits  and  depositors  in  the  special  private  savings  banks, 
amounting  on  June  30,  1911,  to  $36,152,216.  These  totals  do  not  include  the 
savings  deposits  in  the  chartered  banks  ("deposits  payable  after  notice  or  on  a 
fixed  day"),  which  on  June  30,  1911,  were  $564,867,554,  and  on  December  31,  1905, 
$338,411,275. 

g  Excludes  Illinois  State  banks  having  savings  departments. 


Our  Government  should  be  as  exacting  from  foreigners  as  from 
Americans.  Make  them  pay  duty  while  we  pay  taxes. — Hon.  P.  C. 
Cheney. 

The  present  business  system  of  the  country  rests  on  the  pro- 
tective tariff,  and  any  attempt  to  change  it  to  a  free-trade  basis 
will  certainly  lead  to  disaster. — Hon.  VVm.  H.  Tnft,  at  Columbus, 
Ohio. 

The  tide  of  prosperity  may  ebb  and  flow,  but  the  great  ■waves 
of  industrial  wealth  will  continue  to  grow  in  volume  with  ever- 
increasing  comfort  and  happiness  to  our  contented  people,  who 
will  soon  number  <100,000,000.  And  because  of  our  intelligent  and 
skillful  labor,  made  so  because  of  good  wages  and  good  living,  we 
shall  make  better  fabrics  and  build  stronger  structures — that  in 
spite  of  their  higher  cost  in  the  beginning  will  be  cheaper  in  the 
end  and  will  be  wanted  by  the  people  In  every  corner  of  the  earth. 
So  that  we  shall  capture  the  markets  of  the  -world  in  greater  vol- 
ume without  ever  sacrificing  our  home  market,  the  foundation  of 
our   National   wealth   and   progress. — Hon.   James    S.   Sherman. 


The  attitude  of  the  government  toward  combinations  of  capital 
for  the  reduction  in  the  cost  of  production  should  be  exactly  the 
same  as  toward  the  combinations  of  labor  for  the  purpose  of? 
bettering  the  conditions  of  the  wage-worker  and  of  increasing 
his  share  of  the  joint  profit  of  capital  and  labor.  They  are  both 
to  be  encouraged  in  every  way  so  long  as  they  conduct  themselves 
within   the   law. — Hon.  Win,   H.   Taft,   at   Columbus,   Ohio. 


STATI STICAL  STATEMENTS. 


315 


Average  ami  mil  freight  rates  from  1H70  to   1911. 
[From  Statistical  Abstract.] 


Freight  rates  on 
wheat  per  bushel 

Freight  rates  on  can- 
ned goods,  per  cwt  , 
from     Pacific     coast 
to  New  York. 

Year 

Chicago 

to  New 

York,  by 

rail 

Buffalo 

to  New 

York,  by 

canal 

Less 
than  car- 
loads 

In  car- 
loads 

1870 _ 

Cents. 
33.3 
31.0 
33.5 
33.2 
28.7 
21,1 
16.5 
20.3 
17.7 
17.3 
19.9 
14.4 
14.6 
16.5 
13.125 
11.0 
16.5 
15.74 
14.5 
15.0 
14.31 
15.0 
14.23 
14.7 
12.88 
12.17 
12.0 
12.32 
11.55 
11.13 
9.98 
9.92 
10.60 
11.33 
11.11 
10.20 
10.50 
11.30 
11.70 
11.70 
9.60 
9.69 

Cents. 
11.2 
12.6 
13. 
11.4 
10.0 
7.9 
6.6 
7.4 
6.0 
6.8 
6.5 
4.7 
5.4 
4.9 
4.2 
3.8 
5.0 
4.5 
3.4 
4.8 
3.8 
3.5 
3.5 
4.6 
3.2 
2.2 
3.7 
2.8 
2.8 
3.0 
2.5 
3.5 
3.8 
4.0 
3.2 
3.9 
4.2 
5.0 
5.0 
5.0 
5.0 
5.0 

$3.66 
3.76 
3.74 
3.G9 
3.78 
3.(6 
3.77 
4.06 
4.17 
4.20 
4.20 
2.54 
1.50 
1.50 
1.50 
1.50 
1.18 
1.55 
1.89 
2.30 
2.30 
2.30 
2.30 
2.30 
2.30 
2.30 
1.91 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.50 
1.50 
1.50 

$3.66 

1871 __     

3.76 

1872.     _    

3.74 

1873            

3.69 

1874       ... 

3.78 

1ST") . 

3.66 

187B 

3.77 

1877        

4.06 

1878 

4.17 

1879 

1880 

4.20 
4.20 

18S1    _  _ 

2.54 

18^2:     

1.50 

1883 

1.50 

1884 . 

1.41 

1855 

1.25 

1S88_      _     • 

1.01 

1887 

1.20 

1888 

1.13 

1889 

1.06 

1890 :__. 

1.00 

1891.  _ 

1.09 

1892 

1.05 

1S93 : .... 

1.00 

1894 

1.00 

1895 

1  00 

1896.     

1897 

.76 

1898 

.75 

1899. 

75 

1900 

75 

1901 

75 

1902 ... 

75 

1903 

.75 

190!   

75 

1905 

75 

1908 

.75 
.75 
75 

1907 

1908 

1909 

85 

1910 ... 

.85 
.85 

The  policy  of  Washington  is  the  policy  of  the  Republican 
Party.— Senator  Cullom. 

Luxuries  to  the  European  laborer  are  necessities  to  the  Ameri- 
can.— Senator  Frye,   in  the   "American  Economist." 

We  have  lower  interest  and  higher  wages,  more  money  and 
fewer  mortgages. — President  McKinley. 

I  am  a  protectionist  because  I  think  by  that  policy  the  workmen 
of  America  will  be  well  paid  and  not  underpaid. — Hon.  George  F. 
Hoar. 

The  people  have  no  patience  with  those  who  would  violate  the 
plighted  faith  of  the  Nation  and  stamp  its  obligations  with  dis- 
honor.— Hon.  Win.  McKinley  to  delegation  of  farmers,  at  Canton, 
September    22,    189C. 

The  railways  can  blame  no  one  but  themselves  If  the  revelation 
of  the  flagrant  violations  of  law  and  of  their  unjust  administration 
of  a  public  trust  have  led  to  an  outburst  of  popular  indignation 
and  have  brought  on  temporary  excess.— -Hon.  VV m.  H.  Taft,  at 
Columbus,  Ohio. 


A  tariff  for  revenue  only  resulted  In  cheaper  wool,  cheaper 
bread,  cheaper  everything;  there  was  no  doubt  about  that;  but  did 
cheapness  produce  happiness,  as  they  said  it  -would?  No;  it  pro- 
duced misery,  just  as  we  said  it  would. — Hon.  M.  N.  Johnson,  in 
Congress,    March    24,    181)7. 


316 


STATISTICAL  STATEMENTS. 


Number  and  mileage  of  railroads  placed  under  receiverships  and 

sold  under  foreclosure  during  the  calendar  years  1816  to  1901. 

[From  the  Railway  Age,  Chicago.] 


Calendar 
year. 


Placed  under  receivership. 


1876. 
1877. 
1878. 
1879- 
18S0_ 
1881. 
1882. 
1883. 
1884. 
1885. 
1886- 
1887. 
1888. 
1889. 
1890. 
1891. 
1892. 
1893. 
1894. 


1896. . 
1897-. 
1898.. 
1899.. 
1900- 
1901.. 
1902.. 
1903.. 
1904.. 
1905.. 
1906., 
1907- 
1908.. 
1909.. 
1910.. 
1911.. 


Total 


dumber 
of  roads 


724 


Miles. 


6,662 

3,637 

2,o20 

1,102 

885 

110 

912 

1,990 

11,038 

8,386 

1,799 

1,046 

3,270 

3,803 

2,963 

2,159 

10,508 

29,340 

7,025 

4,089 

5,441 

1,537 

2,069 

1,019 

1,165 

73 

278 

229 

744 

3,593 

204 

317 

8,009 


735 


131,922 


Stocks  and 
bonds. 


Sold  under  foreclosure. 


$467 
220 
92 


108 

714 

385 
70 
90 

186 
99 

105 
84 

357 
,781 
.395 

369 

275 
92 

138 
52 
78 
1 
5, 
18 
36 

176, 
55, 
13, 

596. 
78, 
51, 

210, 


.000,000 
,294,000 
,385,000 
,S67,OO0 
,265,000 
,742,000 
,074,000 
,470,000 
,755,000 
,460,000 
,346,000 
,318,000 
,814,000 
,664,000 
,007,000 
,479,000 
,692,000 
,046,000 
,791,000 
,075,000 
,597.000 
,909,000 
,701,000 
,285,000 
,234,000 
,627,0^0 
,835,000 
,823.000 
,060,000 
,321,000 
,042,000 
,585,000 
359,000 
,095,000 
,427,500 
,606,882 


Number 
of  roads. 


Miles. 


7,632,560,382 


976 


3,840 

3,875 

3,906 

4,909 

3,775 

2,617 

867 

1,354 

710 

3,156 

7,687 

5,478 

1,596 

2,930 

3,825 

3,223 

1,922 

1,613 

5,643 

12,831 

13,730 

6.675 

6,054 

4,294 

3,477 

1,139 

693 

555 

524 

679 

S62 

114 

138 

2,629 

1,100 

1,386 


119,206 


Stocks  and 
bonds. 


$217 

198 

311 

243 

263 

137 

65 

47 

23 

278 

374 

328 

64 

137 

182 

169 

95 

79 

318 

761 

1,150 

517 

252 

267 

190 


20 
10 
13 
2 
260 
H 
40 


,848,000 
,984,000 
,631,000 
,288,000 
,882,000 
,9z3,000 
,426,000 
,100,000 
,504,000 
,394,000 
,109,000 
,181,000 
,555,000 
,815,000 
,495,000 
,069,000 
,898,000 
,924,000 
,999,000 
,791,000 
,377,000 
,680,000 
,910,000 
,534,000 
,374,000 
,808,000 
,788,000 
,885,000 
,266,000 
,307,000 
,400,000 
,777,000 
,547,000 
,033,000 
,660,109 
,741,453 


7,280,903,562 


Defense  against  Injurious  importations  is  as  necessary  and  justi- 
fiable  as   is   an   army   and    navy. — Hon.   B.   P.   Jones. 

Cheap  labor  is  not  the  sole  end  we  seek  in  the  United  States. 
.  .  .  We  desire  not  only  well-paid  labor,  but  want  that  labor 
steadily  employed. — Hon.  C.  W.  Fairbanks,  at  Kansas  City,  Mo., 
September   1,    1802. 

The  only  anti-trust  low  on  the  Federal  Statute  books  bears  the 
name  of  a  Republican  senator.  The  law  creating  an  Interstate 
Commerce  Commission  bears  the  name  of  another  Republican 
senator,  and  all  the  law  is  being  enforced  by  a  Republican  Presi- 
dent.— Hon.  E.  L.  Hamilton,  in  Congress,  April  14,  1004. 

There  is,  therefore,  nothing  new  in  these  propositions  as  to 
legislation  by  direct  vote,  and  if  we  look  at  the  scheme  for  the 
recall  of  judges  we  shall  see  that  not  only  has  control  of  tltj 
courts  by  the  sovereign  authority  been  familiar  at  all  stages  of 
history,  but  that  the  actuul  practice  of  judicial  recall  was  at- 
tempted in  France  during  the  revolution  of  1S48.  The  provisional 
government  made  the  judges  removable  at  pleasure.  The  result 
of  those  experiments  in  France  was  the  plebiscite  and  the  Third 
Napoleon.  Representative  government  and  liberty  faded  away 
together   and   the   executive   became   all   powerful. — Senator    Lodge. 

While  I  fully  recognize  the  fact  that  the  Fifteenth  Amendment 
has  not  accomplished  all  that  it  was  intended  to  accomplish,  and 
that  for  a  time  it  seemed  to  be  a  dead  letter,  I  am  coi-f  dent  that 
in  the  eml  It  will  prove  to  be  a  buwark  equally  beneficial  with 
that  of  the  Thirteenth  and  Fourteenth  Amendments  to  an  un- 
fortunate and  down-trodden,  struggling  race,  to  whom,  in  view 
of  the  circumstances  under  which  they  were  brought  to  this 
country  and  the  conditions  in  bondage  in  which  they  were  con- 
tinued for  more  than  two  centnries,  we  owe  every  obligation  of 
care  and  protection.  That  which  has  been  done  for  the  benefit 
of  the  negro  race  Is  the  work  of  the  Republican  party.  It  In  one 
of  those  great  Issues  presented  by  the  exigencies  of  the  war  which 
the  party  had  the  firmness  and  courage  to  meet. — Hou.  Win.  il. 
Taft,  at   Kansas   City,  Mo. 


STATISTICA L  STATEMENTS. 


317 


Production  of  (/old  and  silver  in   the  world  since  the  discovery- 

of  Am  erica. a 

[Source:  1493  to  1885,  table  of  averages  compiled  by  Dr.  Adolph  Soetbeer;  other 
figures  represent  estimates  of  the  Director  of  the  Mint.] 


Gold. 

Silver 

Period. 

Total  for  period. 

Annual 

average  for 

period. 

!     Annual 
Total  for  period,   average  for 
period. 

Value. 

Value. 

Coining  value. b 

Coining 
value. 

1493-1600 

Dollars.                  Dollars.                  Dollars. 
501,640,000  l                4,645,000               949.17a  ftftft 

Dollars. 

8.7S0.ftftn 

1601-1700 

606,:;i5,ooo               d'.nm.non 

1,547,731,000         15,477,000 

2,370,809,000         23,708,000 

1,360,237,000  1       27,205,0'X) 

372,261,000  i       37,226,000 

507,175,000  !      50,718,000 

853,929,000  !       85,393,000 

1,257,248,200  j     125,724,800 

177,352,300  i     177,352,300 

198,014,400  i     198,014,400 

213,944,400        9ia.oii.40ft 

1701-1800.— 

1,262,805,000 

787,463,000 

1,382,931.000 

1,263,015,000 
1,067,559,000 
1,075,050,500 

12,6:8,000 

15,749,000 
133,^98,000 

1801-1«50 

1851-1860 

1861-1870 

1871-1880 

126,302,000 

106,756,000 

1881-1890 

107,505,100 
130,650,000 

1>91 

130,650,000 

1892        

146,651,500 
157,494,800 
181,175,600 
198,763,600 
202,251,600 

146,651,500 
157,494,800 
181,175,600 
198,763,600 
209.9^1.600 

1893 

1894 

1895 

212,829,600 
216,566,900 
203,069,200 

212,829,600 
216,566,900 
90S  (lfi9 .  900 

1896 

1897     

236,073,700  ;            236,073,700 
286,879,700              286,879,700 
306,724,100              306,724,100 
254,576,300              254, 576, 300 
260,992,900  i             260,992,900 
296,787,090  ;            296,737,600 
327,702,200  ;            327,702,200 
347.377,200  !            347,377,200 
380 , 288 , 700               380 . 288 . 700 

207,413,000  !     207,413,000 
218,576,800  '\     218,576,800 
217,648,200        917.AW.2lin 

1898     

1899 

19  0 

224,441,200 
223,691,300 
210,441,900 
216,810  300 

224,441,200 

1901 

223,691,300 

1 902 

210,441,900 

19^3 

21fi.810.a0ft 

1904 

212,292,900       212.292,900 

1905 

222,794,500       222,794,500 

1906 

402,503,000 

402,503,000 

213,403,800  1     213,403,800 

1907 

412,966,600 
442,476,900 
454,145,700 
454,703,900 
460,000,000 

412,966,600 

238,166,600       238,166,600 

1903 

442,476,900 

262,634,500        262.634.500 

1900 

454,145,700 
454,703,900 
461,000,000 

272,101,400 
288,167,300 
291,000,000 

222,101,400 
288,167,300 

1910..     .       

1911  (estimated).. 

291,000,000 

Total 

14,246,225,600 

14,066,170,900 

a  For  .production  of  the  United  States,  see  Tables  Nos.  118  and  119. 
b  Commercial  values  for  single  years  may  be  ascertained  by  multiplying  fine 
ounces  by  annual  average  prices  of  silver  as  shown  in  Table  No.  261. 


The  3.000,000  of  men  .who  went  out  of  employment  with  the 
revision  of  the  tariff  by  the  Democratic  party  found  employment 
In  the  enactment  of  the  Dingley  law  by  the  Republican  Party, 
and  a  million  and  a  half  have  been  added  to  those  who  have 
employment  in  the  industries  of  the  country. — Hon.  P.  P.  Camp- 
bell,  in   Congress,  April   1,   1904. 

Anything  that  makes  capital  idle,  or  which  reduces  or  destroys 
it,  must  reduce  both  wages  and  the  opportunity  to  earn  wages.  It 
only  requires  the  effects  of  a  panic  through  which  we  are  passing, 
or  through  which  we  passed  in  1803  or  1873,  to  show  how  closely 
united  in  a  common  interest  we  all  are  in  modern  society.  We 
are  in  the  same  boat,  and  financial  and  business  storms  which 
affect  one  are  certain  to  affect  all  others. — Hon.  Wm.  H.  Taft, 
before  the   Cooper   In  ion,  New  York   City. 

The  Wilson  hill  was  enacted  into  law.  Tlie  proof  of  the 
pudding  is  in  the  eating.  There  were  three  million  men 
working  in  the  productive  industries  and  on  their  pro- 
ducts that  were  thrown  out  of  employment.  They,  learn- 
ing through  their  stomachs  as  to  the  effects  of  it,  helped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  and  mountains  will  fall  upon  you  again,  I  hope, 
in    1912,    and   I   know   in    1914   and    191(>.-Ex-Speaker    Cannon. 

The  administration  of  exact  justice  by  courts  without  fear  or 
favor,  unmoved  by  the  influence  of  the  wealthy  or  by  the  threats 
of  the  demagogue,  is  the  highest  ideal  that  a  government  of  the 
people  can  strive  for,  and  any  means  by  which  a  suitor,  however 
unpopular  or  poor,  is  deprived  of  enjoying  this  is  to  be  condemned. 
It  is  important,  however,  that  appeals  to  judicial  remedies  should 
be  limited  in  such  a  way  that  parties  will  not  use  them  merely 
to  delay  and  so  clog  efficient  and  just  executive  or  legislative 
action. — Hon.    Wm.    H.    Taft,    at    Columbus,    Ohio. 


318 


STATISTICAL  STATEMENTS. 


Production  of  gold  and  silver  by  principal  countries    in  1910. 

[Includes  all  countries  havng  a  product  of  more  than  $1,000,000  of  either  gold 

or  silver.] 


Gold 

Value 

Silver 

Country 

Coining 
value 

Commercial 
value 

North  America* 

United  States  - _. 

$96,269,100 
24,910,600 
10,205,800 

175,189,900 
65,470,600 

35,579,600 

2,172,600 

62,900 

29,600 

$73,875,2.59 

92,279,194 

42,497,631 

1,340,974 

27,837,230 

181,827 
1,992,156 
7,236,558 

605,823 
5.36S.798 
1,071,871 

8,391,321 
1,119,797 

$30,854,500 

Mexico  

38,511,000 

Canada   

Africa 

17,749,400 

560,100 

11, 634,. 00 

75,900 

Europe 

Russia 

Austria-Hungary    

Germany  

832, 000 
3,022,400 

Italy   

253,000 

Spain 

2,242,300 
447  700 

Greece  

South  America: 

Bolivia ) 

Chile  { 

Colombia 

463,600 

3,370,000 
1,951,700 
1,192,700 
2,005,800 
514,500 
4,657,400 

3,8'5,400 
3,658  100 
4,399,100 
10,718,400 
1,416,800 

3,504,700 
467,700 

Brazil    

Guiana   (British)    

Guiana   (French)   

Peru 

12,-^68,313 
2,620,619 

6,007.156 

5,165,700 

Central   America 

1,094,500 
2,508,900 

Asia: 

Japan _ 

Korea   

British    India    

East  Indies   (British   

213,132 

57,887 

89  090 
21,100 

Note.— The  gold  production  of  the  world  in  1911  was  estimated  at  $460,000,000. 


Principles  are  more  enduring  than  men,  more  lasting"  than  fac- 
tions.— Hon.  James  S.  Sherman. 

Protection  brings  together  diversified  industries  which  never 
fail  to  vastly  increase  the  personal  intelligence,  industry  and  wage 
earnings  of  the  people. — Hon.  Justin   S.  Morrill. 

We  must  regard  and  have  an  interest  in  what  our  neighbors 
are  doing,  and  when  we  can  assist  them,  we  cannot  pass  by  on 
the  other  side  as  the  Levite  did,  but  we  must  take  them  up  as 
the  Good  Samaritan  did  and  bind  up  their  wounds  and  prepare 
to  send  them  on  their  way  rejoicing. — Hon*  Wm.  H.  Taft,  at  Cleve- 
land, Ohio. 

Instead  of  making  a  panic,  the  national  policy  of  ending  the 
lawlessness  of  corporations  In  Interstate  commerce,  and  of  taking 
away  their  power  of  issuing,  without  supervision,  stocks  and 
bonds,  will  produce  a  change  in  their  management  and  remove 
one  fruitful  cause  for  loss  of  public  confidence. — Hon.  Wm.  H. 
Taft,  to   Merchants   and  Manufacturers'   Association,   Boston,   Mass. 


Liberty  and  honor' do  not  measure  all  that  the  party  has  stood 
for  and  stands  for  to-day.  There  is  another  great  underlying 
policy  which  the  Republican  Party  adopted  at  its  birth  and  has 
developed  since  as  has  none  of  the  great  powers  of  Christendom. 
I  refer  to  the  policy  of  progress,  which  has  made  our  country 
the  greatest,  our  nation  the  strongest,  and  our  people  the  wealth- 
iest and  happiest  of  all  the  peoples  of  the  world. — Hon.  James 
S.   Sherman. 

Many  of  our  great  Industries,  including  the  silk  industry*  the 
pottery  Industry,  the  carpet  Industry,  and  the  steel-rail  industry, 
had  only  a  nominal  existence  until  adequately  protective  duties 
were  imposed  on  competing  foreign  products.— -James  M.  Swank, 
in    the    "American    Economist." 

Those  foreign  countries  which  have  adopted  protection  have, 
In  the  elements  by  which  you  have  been  accustomed  to  test  the 
prosperity  of  a  nation,  Improved  in  a  greater  ratio  and  more  rap- 
Idlv  than  we  have  ourselves;  and  I  have  also  to  point  out  that  this 
tendency,  which  has  become  so  manifest  in  recent  years,  is  likely, 
as  every  sensible  man  of  business  knows,  to  be  accentuated  as 
time  goes  on. — Hon.  Jos.  Chamberlain,  at  Liverpool,  October  27, 
1003. 


STATISTICAL  STATEMENTS. 


319 


Value  of  gold  coin  and  bullion  imported  into  and  exported  from 
the  United  States,  fiscal  years  since  1850. 


Year  ending 
June  30— 

Imports 

Exports 

Excess  of 

imports  over 

exports 

Excess  of 

exports  over 

imports 

1850 

$1,776,706 

3,569,090 

3,658,059 

2,427,356 

3,031,964 

1,092,802 

990,305 

6,654,636 

11,566,068 

2,125,397 

2,508,786 

42,291,930 

13,907,011 

5,530,538 

11,176,769 

6,498,228 

8,196,261 

17,024,866 

8,737,448 

14,132,568 

12,056,950 

6,883,561 

8,717,458 

8,682,447 

19,. 503 ,137 

13,696,793 

7,992,709 

26,2  46,234 

13,3:30,215 

5,624,948 

80,758,396 

100,031,259 

34,377,054 

17,734,149 

22,831,317 

26,091,696 

20,743,349 

42,910,601 

43,934,317 

10,284,858 

12,943,342 

18,232,567 

49,699,454 

21,174,381 

72,449,119 

36,384,760 

33, 525,  <>r, 

85,014,780 

120,:!91,6-4 

88,954,603 

44,573,184 

66,051,187 

52,021,254 

.     44,982,027 

99,05-5, 358 

53,648,961 

96,221,730 

114,510,249 

148,337,321 

44,003,989 

43,339,905 

73,607,013 

48,936,500 

$4,560,627 

22,836,913 

40,073,979 

25,442,858 

40,470,260 

55,109,215 

.    45,000,977 

65,232,653 

50,002,804 

61,108,053 

58,446,039 

27,423,973 

35,439,903 

62,162,838 

100,661,634 

58,381,033 

71,197,309 

39,026,627 

72,396,344 

36,003,498 

33,635,962 

66,686,208 

49,548,760 

44,856,715 

34,042,420 

66,980,977 

31,177.050 

26,590,374 

9,204,455 

4,587,614 

3,639,025 

2,565,132 

32,587,880 

11,000,888 

41,081,957 

8,477,892 

42,952,191 

9,701,187 

18,376,234 

59,952,285 

17,274,491 

86,362,654 

50,195,327 

108,680,844 

76,978,061 

66,468,481 

112,409,947 

**1   580 

37 ',  522,086 
48,266,759 
53,185,177 
48,568,950 
47,090,595 
81,459,986 
92,594,024 
38,573,591 
51,399,176 
72,432,924 
91,531,818 
118,563,215 
22,509,653 
57,328,348 

$2,783,921 

1851 

19,267,823 

36,415,920 

28,015,502 

1854 

37,438,296 

1855 

54,016,413 

1856 

44,010,672 

1857 

58,578,017 

1858 

38,436,736 

1859 

58,982,656 

1860 

55,937,253 

1861 

$14,867,957 

1862 

21,532,892 

1853 

56,632,300 

1864 

89,484,865 

1865_ 



51,882,805 

1866 

63,004,048 

1867 

22,001,761 

1868 

_ 

64,658,901 

1869 

21,870,930 

1870 

21,579,012 

1871 

59,802,647 

1872 

40,831,302 

1873 

36,174,268 

1874 

14,539,283 

1875 

53,284,184 

1S76 

23,184,341 

1877 

344,140 

1878 

4,125,760 
1,037,334 
77,119,371 
97,466,127 
1,789,174 
6,133,261 

1879 

1880 

1881 

1882 

1883 

1884     

18,250,640 

1885 

18,213,804 

1886    _ 

22,208,842 

1S87 

33,209,414 
25,558,083 

1SS8 

1889 

49,667,427 

1890_„ 

4,331,149 

1891. __ 

68,130,087 

1S92_._ 

495,873 

1893. __ 

87,508,463 

1894 

4,528,942 

189") 

30,083,721 

1896 

78,884,882 

1897 

44,653,200 
104,985,283 
51,432,517 

1898 

1899 

1900. _. 

3,693,575 

1901 

12,866,010 
3,452,304 

1902 

1903 

2,108,568 

1904 

17,595,387 

1905 

38,945,063 

190(3    

57,648,139 
63,111,073 
75,904,397 

1907 

1908 

1909 

47,527,829 

1910 

75,223,310 

1911 

51,097,360 

1912 

8,391,848 

What  the  capitalist,  who  is  the  employer  of  labor,  must  face  is 
that  the  organization  of  labor — the  labor  union — is  .a  permanent 
condition  in  the  industrial  world.  It  has  come  to  stay. — Hon.  Win. 
H.  Taft,  at  Cooper  Union,  New  York  City. 

The  futility  of  the  investigation  of  the  "Steel  Trust"  by  the 
Stanley  Committee,  which  will  have  cost  in  direct  expense,  nearly 
#40.000  and  indirectly  an  unascertainable  amount,  Is  practically 
demonstrated  before  any  report  is  ready.  A  similar  result  is  to 
be  expected  of  several  other  investigations  undertaken  in  the  last 
year  by  the  House  of  Representatives  through  either  regular  or 
special  committees,  for  the  simple  reason  that  their  purpose  has 
not  been  to  ascertain  facts  and  place  them  in  their  proper  rela- 
tion, in  order  to  establish  the  truth  and  serve  as  a  guide  to  sound 
public  action,  but  to  gain  some  party  advantage  by  one-sided  con- 
clusions. Investigation  of  matters  which  may  call  for  changes 
in  legislation  or  in  administration  of  the  law  must  be  conducted 
in  a  judicial  and  not  a  partisan  way  if  they  are  to  be  of  real  use.— 
New  York  "Journal  of  Commerce,"  Democrat. 


320 


STATISTICAL  STATEMENTS. 


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STATISTICAL  STATEMENTS. 


Chief  manufacturing  industries,  showing  sums  paid  in   wages 
and  number  of  employees. 

/Source:  Reports  of  the  Bureau  of  the  Census,  Department  of  Commerce  ana 
Labor.  The  figures  for  some  industries  do  not  represent  the  total  production, 
because  important  establishments  that  manufacture  the  same  class  of  products 
may  be  included  in  other  industries.  Primary  horsepower  includes  power  gen- 
erated in  manufacturing  establishments  plus  electric  and  other  power  rented 
from  outside  sources;  it  does  not  include  electric  power  generated  by  primary 
units  of  the  establishments  reporting.  In  the  statistics  of  power  for  1899  there 
is  a  difference  of  $154,723  horsepower  between  the  total  and  the  sum  of  the  figures 
for  the  various  industries.  This  is  due  to  the  impossibility  of  making  a  correct 
revision  of  the  figures  for  each  industry  for  comparison  with  1904  and  1909.  A 
minus  sign  (— )  denotes  decrease.] 


Industry. 

Cen 
sus 

<um- 
>er  of 
estab- 

Capital 
express- 
ed in 

Wage 

earners 

(aver- 

Wages. 

Cost  of 
mate- 
rials. 

Value  of 
prod- 
ducts. 

year. 

lish- 

thous- 

age 

ments  . 

ands. 

num- 
ber). 

Expressed  in  thousands. 

Dollars. 

Dollars. 

Dollars. 

Dollars. 

Agricultural    implements 

1909 

64C 

256,281 

50,551 

28,609 

60,307 

146.329 

1904 

648 

196,741 

47,394 

25,003 

48,281 

112,007 

1899 

715 

157,708 

46,582 

22,451 

43,945 

101,207 

Boots     and     shoes,     in- 

1909 

1,918 

222,324 

198,297 

98,463 

332,738 

512,798 

v  eluding  cut  stock  and 

1904 

1,895 

136,802 

160,294 

73,072 

225,288 

357,688 

findings. 

1899 

2,253 

110,363 

151,231 

61,924 

191,456 

290,047 

Bread  and  other  bakery 

1909 

23,926 

212,910 

100,216 

59.351 

238,034 

396.865 

products. 

1904 

18,226 

122,353 

81,278 

43,172 

155,989 

269,583 

1899 

14,836 

80,902 

60,192 

27,864 

95,052 

175,369 

Carriages    and    wagons 

1909 

5,492 

175,474 

69,928 

37,595 

81,951 

159,893 

and  materials. 

1904 

5,588 

152,345 

77,882 

38,363 

77,528 

155,869 

1899 

6,792 

128,962 

73,812 

.     33,565 

66,772 

138,262 

Cars    and   general   shop 

1909 

1,145 

238,317 

282,174 

181,344 

199,413 

405,601 

construction    and    re- 

1904 

1,140 

146,886 

236,870 

142,153 

151,105 

309,775 

pairs    by    steam-rail- 

1899 

1,292 

119,473 

173,595 

96,007 

109,472 

218,114 

road  companies. 

Cars    and    general   shop 

1909 

541 

38,899 

22,418 

14,486 

15,168 

31,963 

construction     and     re- 

1904 

86 

12,906 

11,052 

7,013 

5,463 

13,437 

pairs     by      street-rail- 

1899 

108 

10,782 

7,025 

4,405 

4,837 

9,371 

road  companies. 

C»rs,      steam-railroad, 

1909 

110 

139,805 

43,086 

27,135 

78,758 

123,780 

Rot    including    opera- 

1904 

78 

88,179 

34,058 

20,248 

75,657 

111,175 

tion*        oi        railroad 

1899 

66 

88,324 

33,453 

16,987 

61,743 

90,510 

ccrapaniea. 

Cars,        street-railroad, 

1909 

14 

14,168 

3,583 

2,177 

4,260 

7,810 

not     including     opera- 

1904 

14 

12,976 

4,730 

2,840 

5,341 

10,844 

tions  of  railroad 

1899 

20 

7,615 

3,585 

1,951 

3,967 

7,305 

companies. 

Chemicals    

1909 

349 

155,144 

23,714 

14,085 

64,122 

117,689 

1904 

275 

96,621 

19,806 

10,790 

42,063 

75,222 

1899 

433 

89,069 

19,020 

9,898 

34,546 

62,637 

Clothing,   men's,   includ- 

1909 

6,354 

275,320 

239,696 

106,277 

297,515 

568,077 

ing  shirts. 

1904 

5,145 

176,557 

173,689 

68,459 

211,433      406,768 

1899 

6,419 

140,191 

157,549 

56,391 

168.169      328,839 

Clothing,   women's  

1909 

4,558 

129,301 

153,743 

78,568 

208. 78c 

384,752 

1904 

3,351 

73,948 

115,705 

51,180 

130,720 

247,662 

C^,f\T\  "f  Of*t  inn  Attt 

1899 

2,701 

48,432 
68,326 
43,125 

83,739 
44,638 
36,239 

32,586 
15,615 
11,699 

84,705 
81,151 
48,810 

159,340 

-  134,796 
87,087 

vyv/nitL.  uuin,i  y          __ —«—._- 

1909 
1904 

1,944 
1,348 

1899 

962 

26,319 

26,866 

8,020 

35,354 

60,644 

Cordage       and      twine, 

1909 

164 

76,020 

1,314 

9,133 

40.915 

61,020 

jute  and  linen  goods. 

1904 

145 

56,467 

1,050 

8,824 

46.031 

64,664 

1899 

160 

43,153 

682 

6,554 

83,004 

49,078 

Cotton     goods,     includ- 

1909 

1,324 

822,258 

8,514 

132,859 

371,009      628,392 

ing        cotton        small 

1904 

1,154 

613,111 

6.981 

96,206 

286,255      450.468 

wares . 

1899 

1,055 

467,240 

4,902 

86,690 

176,552 

339,200 

Electrical         machinery, 

1909 

1,009 

267,844 

87,256 

49,381 

108.566 

221,309 

apparatus,     and     sup- 

1904 

784 

174,066 

60,466 

31,842 

66,837 

140,809 

supplies. 

1899 

581 

83,660 

42,013 

20,579 

49,458 

92,434 

Flour-mill      and       grist- 

1909 

11,691 

849,152 

39,453 

21,464 

767,576 

883.584 

mill  products. 

1904 

10,051 

265,117 

39,110 

19,822 

619,971 

713,033 

1899 

9,476 

189,281 

82,226 

16,285 

428,117 

501,396 

Foundry    and    machine- 

1909 

13,253 

1,514,332 

74,623 

321,521 

540,011 

1,228.475 

shop  products. 

1904 

10,765 

1,034,135 

49,406 

246.573 

867,412 

880.514 

1899 

11,046 

790,741 

34,286 

219,870 

363,036 

798,454 

Furnishing  goods,  men's 

1909 

908 

49,009 

38,482 

15,093 

49,125 

87,710 

1904 

545 

28,044 

27,185 

8,760 

,      26.565 

49.032 

1899 

454 

20,576 

30,322 

9,730 

j      23,670 

44,346 

Furniture      and     refrig- 

1909 

3,155 

227,134 

128,452 

65,618 

i     108,775 

239. 8S6 

erators. 

1904 

2,593 

158,986 

114,165 

51,788 

i      76,892 

177,795 

1899 

1,909 

109,267 

90.591 

1      36,920 

57,406 

130,634 

STATISTICAL  STATEMENTS. 


325 


Industry. 

Cen- 
sus 
year. 

ber  of 
-uinx 

estab- 
lish- 

Capital 
express- 
ed in 
thous- 

Wage I 

earners 

(aver-  j 

age    j 

Wages. 

1 
Cost  of  Value  of 
mate-       prod- 
rials,        ucts. 

ments. 

ands. 

num-    ' 
ber). 

Express 

ed  in  thousands. 

Glass   

1909 
1904 
1899 

363 
399 
355 

129,288 
89,389 
61,424 

68,911 
63,969 
52,812 

39,300 
37,288 
27,085 

32,119 
26,146 
16,731 

92,095 

79,608 
56,540 

Hosiery  and  knit  goods    1909 

1  1904 

1899 

1,374 
1,144 

1,006 

163,641 
106,943 
82,066 

129,275 
104,092 
83,691 

44,740 
31,615 
24,434 

110,241 
76,789 
51,195 

200,143 

137,076 

95,831 

Iron     and     steel,     blast 
furnaces. 

1909 
1904 
1899 

2C8 
190 
223 

487,581 
236,146 
143,159 

38,429 
35,078 
39,241 

24,607 
18,935 
18,484 

320,638 
178,942 
131,504 

391,429 

231,823 
206,757 

Iron     and     steel,     steel 
works        and        rolling 
mills. 

1909 
1904 
1899 

446 
415 
445 

1,004,735 
700,182 
430,232 

20,639 
14,330 
7,454 

163,201 
122,492 
102,336 

657,501 
441,204 
390,895 

985,723 
673,965 
597,212 

Jewelry     

1909 
1904 
1899 

1,537 

1,023 

851 

63.811 
39,679 

27,872 

4,799 
2,603 
1,806 

18,358 
12,593 
10,644 

36,675 
24,177 
22,235 

80,350 
58,226 
46,129 

Leather,      tanned,      cur- 
ried and  finished. 

1909 
1904 

1899 

919 
1,049 
1,306 

332,727 
242,584 
173.977 

62,202 
57,239 
52,109 

32,103 

27,049 
22,591 

248,279 
191,179 
155,000 

327,874 
252,621 
204,038 

Liquors,    distilled    

1909 
1994 
1899 

613 

805 
965 

72,450 
50,101 

6,430 
5,355 
3,750 

3,074 
2,657 
1,733 

35,977 
25,626 
15,145 

204,699 
181,270 

32,540 

96,794 

Liquors,   malt  

1909 
1904 
1899 

1,414 
1,530 
1,507 

671,158 
515,630 
413,767 

54,579 
48,137 
39,459 

41,206 
34.541 
25,776 

96,596 
74,907 
51,598 

374,730 

298,346 

236,915 

Lumber       and       timber 
products. 

1999 
1904 
1899 

40,671 
25,153 
28,133 

1,176,675 
733,708 
541,595 

41,145 
30,038 
20,940 

318,739 
245,834 
188,395 

508,118  1,156,129 
360, 325 i     884,267 
364,964j     760,992 

Lumber       and       timber 
'products. 

1909 
1904 
1899 

40.671 
25,153 
28,133 

1,176,675 
733,708 
541,595 

784,989 
593,342 

318,739 
245,834 
188,395 

508,118 
360,325 
364,961 

1,156,129 

884,267 
760,992 

Marble       and       stone 
work. 

1909 
1904 
1899 

4,964 

2.608 
2,952 

114.842 
79,170 
52,982 

77,275 
57,866 

42,546 
31,899 
22,843 

37,397 
26,569 
21,546 

113,093 
84,844 
63,667 

Paper  and  wood  pulp_. 

1909 
1904 
1899 

777 
761 
763 

409,348 
277,444 
167,508 

75,978 
65,964 
49,616 

40,805 
82,019 
20,746 

165,442 
111,252 

70,530 

267,657 
188,716 
127,326 

Patent     medicines      and 
compounds    and    drug- 
gists' preparations. 

1909 
1904 
1899 

3,642 

2,777 
2,154 

99,942 
75,607" 
56,173 

22,895 
20.472 
19,028 

9,897 
7,913 
6,910 

50,376 
89,494 
31,950 

141,942 
117,436 
88,791 

Petroleum,   refining  

1909 
1904 
1899 

147 
98 
67 

181,916 
136,281 
95,328 

13,929 
16,770 
12,199 

9,830 
9,989 
6,717 

199,273 
139,387 
102,859 

236,998 
175,005 
123,929 

Printing   and   publishing 

1909 

1904 
1899 

31,445 

27,793 
23,814 

588,346 
432,854 
333,003 

258,434 
219,087 
195,260 

164,628 

127,196 
99,816 

201,775 
142,514 
103,654 

737,876 
552,473 
395,187 

Rubber  goods,   not  else- 
where specified. 

1909 
1904 
1899 

227 
224 
261 

98,507 
46,298 
39,302 

26,521 
21,184 
20,404 

14,120 
9,412 
8.082 

82,192 
38,912 
33,482 

128,436 
62,996 
52,622 

Silk     and     silk     goods, 
including  throwster. 

1909 

1904 
1899 

S52 
624 
483 

152,158 
109,557 
81,082 

99,037 
79,601 
65,416 

38,570 

26,768 
20,982 

107,767 
75,861 
62,407 

196,912 
133,288 
107,256 

Slaughtering    and    meat 
packing. 

1909 
1904 

1S99 

1,641 
1,221 

1,080 

383,249 
240,419 
190,209 

89,728 
75,399 
69,264 

51,645 

41,067 
33,846 

1,201,828 
811,426 
685,310 

j  ,370,568 
922,038 
788,368 

Smelting     and    refining, 
copper. 

1909 
1904 
1899 

•      38 
40 
47 

111,443 

76,825 
53,063 

15,628 
12,752 
11,324 

13,396 
10,827 
8,529 

333,532 
196,737 
122,174 

378,806 
240,780 
165,132 

Smelting     and     refining, 
lead. 

1909 
1004 
1899 

28 
32 
39 

132,310 
63,823 
72,149 

7,424 
7,573 
8,319 

5,431 
5,375 
5,089 

151,963 
168,958 
144,195 

167,406 
185,827 
175,466 

Soap    

1909 
1904 
1899 

420 
436 
558 

71,951      12,999 
54.816      11,044 
38,068       9,487 

6,2^7 
4,763 
3,755 

72.179 
43,626 
33,143 

111,358 
68,275 
53,231 

Sugar      and      molasses, 
not       including       beet 
sugar. 

1909 

1904 
1899 

233 
344 

657 

153,167      13,526 
165,468      13,549 
184,033      14,120 

7.484 
7,576 
6,918 

247,583 
244,758 
221,385 

279,249 

277,285 
239,711 

Tobacco   manufactures 

1909 
1904 
1899 

15,8?2 

16,827 
14,959 

245,660 
323,982 
111,517 

166,810 
159,406 
132,526 

69.355 
62.639 
47,975 

177.186 
126,086 
92,867 

416,695 
331,111 
263,713 

Wire    

1909 
1904 
1899 

56 
25 

29 

60,157 

14.899 

4,242 

18,084 

4.737 
1,603 

10,316 

2,859 
860 

60.543 

30.063 

7,014 

84,486 
37,914 
9,421 

Woolen,     worsted,     and 
felt    goods,    and    wool 
hats. 

1909 

1904 
1899 

985 
1,074 
1,281 

430,579 

;     314.081 

265,730 

168.722 
146.755 
130,697 

72,427 
57,073 
46,812 

282. 878 
204 .  61 3 
153,930 

435.979 
319.348 
248,798 

326 


STATISTICAL  STATEMENTS. 


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Think  of  it,  yon  producers  and  manufacturers  and  merchants 
and  traders  and  bankers  and  transporters,  think  of  It!  The  mar- 
ket of  our  own  country,  the  home  market,  In  which  you  can  trans- 
port your  goods  from  the  door  of  the  foctory  to  the  door  of  the 
consumer,  without  breaking:  bulk  a  single  time,  Is  equal  to  the  entire 
International  commerce  of  the  world. — O.  P.  Austin,  at  Rochester. 


The  course  of  the  Republican  party,  since  Its  organization  in 
1850,  and  its  real  assumption  of  control  in  1861,  down  to  the  pres- 
ent day,  is  remarkable  for  the  foresight  and  ability  of  its  leaders, 
for  the  discipline  and  solidarity  of  its  members,  for  its  efficiency 
and  deep  sense  of  responsibility  for  the  preservation  ami  ipeeeaa 
ful  maintenance  of  the  government,  and  for  the  greatest  resource- 
fulness in  meeting  the  various  trying  and  ditlleult  insnes  which 
a  history  of  now  a  full  half-century  have  presented  for  solution. 
— Hon.   Win.   H.   Taft,  at  Kansas   City,  Mo. 


STATISTICAL  STATEMENTS. 


327 


Prices  of  Principal  Agriculture  Products  on  the  Farm  Decem- 
ber 1,  1892,  to  December  1,  1911. 

[From  report  of  Department  of  Agriculture.] 
Farm  prices  of  wheat  per  bushel. 


State  or  Territory. 

1892 

1896 

1900 

1908 

1909 

1910 

1911 

Maine 

$1.02 

$0.84 

$0.90 

$1.04 

$1.10 

$1.02 

$1.10 

1.00 
.96 

.87 
.85 

1.00 
.93 

""is" 

.92 

.78 
.82 
.77 

.99 

1.20 

1.03 

.99 

New   York   

.99 

1.11 

.96 

.9") 

New  Jersey  

.83 

.89 

.74 

1.01 

1.09 

.98 

.96 

.81 
.75 

.83 

.87 

.72 
.70 

.99 
1.00 

1.09 
1.04 

.92 
.90 

.92 

Delaware 

.90 

Maryland  

,74 

.88 

.71 

.98 

1.10 

.92 

.91 

.76 
.75 

.80 
.78 

.72 

.77 

1.01 
1.03 

1.15 
1.13 

.97 
1.02 

.96 

West  Virginia  

1.02 

North  Carolina  

.89 

.83 

.82 

1.07 

1.27 

1.10 

1.02 

South  Carolina   

.93 

.89 

1.01 

1.30 

1.46 

1.26 

1.83 

Georgia __    

.90 

,68 

,89 

.78 

.95 
.71 

1.21 
.99 

1.45 
1.12 

1.30 
.90 

1.14 

Ohio __    _ 

.91 

Indiana 

.64 

.80 

.70 

.98 

1.10 

.87 

.89 

Illinois 

.63 

.74 

.64 

.97 

1.04 

.88 

.89 

Michigan 

.67 

.84 

.69 

.97 

1.12 

.89 

.88 

Wisconsin 

.62 

.70 

.64 

.92 

.96 

.92 

.90 

Minnesota   

.61 

.63 

M 

.94 

.96 

.94 

.92 

Iowa  

.60 

.62 

.59 

.88 

.93 

.85 

.88 

Missouri    

.58 

.70 

.63 

.93 

1.05 

.87 

.88 

.52 

.64 

.58 

.92 

.92 

.90 

.89 

South  Dakota     

.51 

.62 

.58 

.92 

.90 

.89 

.91 

.50 
.52 

.58 
.63 

.53 

.55 

.84 
.88 

.89 

.96 

.80 

.84 

.87 

Kansas 

.91 

Kentucky   

.67 

.76 

.69 

.98 

1.11 

.93 

.92 

Tennessee    ~  __    

.68 
.93 

.74 
.85 

.79 
.80 

.99 

1.07 

1.15 
1.30 

.98 
1.13 

.96 

l.:0 

Mississippi  

.90 

.82 

.84 

1.03 

1.21 

1.16 

1.00 

Texas  

.75 

.75 

.64 

.98 

1.18 

.98 

1.00 

Oklahoma     

.68 
.71 
.66 

.53 
.65 
.61 

.88 
.95 
.86 

1.01 
1.10 

.87 

.87 
.94 
.86 

.32 

Arkansas   

.80 
.69 

.90 

Montana 

.77 

Wyoming  , 

.66 

.62 

.76 

.85 

.99 

.95 

.94 

Colorado    

.58 
.80 

.61 
.66 

.59 
.68 

.88 
.94 

.93 
1.17 

.82 
1.00 

.84 

New  Mexico 

1.00 

Arizona  

.78 

.80 

.79 

1.20 

1.39 

1.20 

.95 

Utah  ., 

.62 

.68 

.55 

.85 

.90 

.84 

.70 

Nevada    

.75 

.69 

.70 

1.13 

1.04 

1.09 

.95 

Idaho 

.60 

.65 

.46 

.74 

.87 

.72 

.66 

Washington   . _ 

.58 

.74 

.SI 

.82 

.93 

.78 

.71 

Oregon 

.64 

.72 

.55 

.84 

.93 

.84 

.75 

California   

.68 

.83 

.58 

1.02 

1.11 

.94 

.83 

General  average 

.624 

.726 

.619 

92.8 

98.6 

88.3 

87.4 

This  brings  me  to  the  question  of  arbitration.  It  goes  without 
saying  that  where  an  adjustment  cannot  be  reached  by  negotia- 
tion, it  Is  far  better  for  the  community  at  large  that  he  differences 
be  settled  by  submission  to  an  impartial  tribunal  and  agreement 
to  abide  its  judgment  than  to  resort  to  a  trial  of  resistance  and 
endurance  by  lockouts  and  strikes. — Hon.  Wm.  H.  Taft,  at  Cooper 
Union,  New  York  City. 

The  administration  of  exact  justice  by  courts  without  fear  or 
favor,  unmoved  by  the  influence  of  the  wealthy  or  by  the  threats 
of  the  demagogue,  is  the  highest  ideal  that  a  government  of  the 
people  can  strive  for,  and  any  means  by  which  a  suitor,  however 
unpopular  or  poor,  is  deprived  of  enjoying  this  is  to  be  condemned. 
It  is  important,  however,  that  appeals  to  judicial  remedies  should 
be  limited  in  such  a  way  that  parties  will  not  use  them  merely 
to  delay  and  so  clog  efficient  and  just  executive  or  legislative) 
action. — Hon.  Wm.    H.   Taft,   at    Columbus,    Ohio. 

Efficient  regulation  is  the  very  antidote  and  preventive  of 
socialism  and  government  ownership.  The  railroads,  until  now, 
have  been  permitted  to  wield  without  any  real  control  the  enor- 
mously important  franchise  of  furnishing  transportation  to  the 
entire  country.  In  certain  respects  they  have  done  a  marvelous 
work  and  have  afforded  transportation  at  a  cheaper  rate  per  ton, 
per  mile,  and  per  passenger,  than  in  any  country  in  the  world. 
They  have,  however,  many  of  them,  shamefully  violated  the  trust 
obligation  they  have  been  under  to  the  public  of  furnishing  equal 
facilities  at  the  same  price  to  all  shippers.  They  have  been 
weighed  in  the  balance  and  found  wanting.  The  remedy  for  the 
evils  must  be  radical  to  be  effective.  If  It  Is  not  so,  then  we  may 
certainly  expect  that  the  movement  toward  government  owner- 
ship will  become  a  formidable  one  that  cannot-  be  stayed. — Hon, 
Win.    II.   Taft,   at   Columbus,   Ohio. 


128 


STATISTICAL  STATEMENTS. 


Farm  values,  corn  per  bushel. 


State  or  Territory. 

1892 

1896 

1900 

1908 

1910 

1910 

1911 

Maine     ._ , 

New  Hampshire 

Cts. 
tiT 
65 
64 
62 
63 
62 
60 
58 
57 
44 
45 
53 
56 
54 
5T 
56 
60 
42 
40 
37 
46 
3S 
37 
32 
36 
40 
33 
28 
31 
40 
43 
52 
51 
50 
45 

Cts. 

47 
45 
38 
46 
49 
42 
38 
36 
33 
25 
32 
32 
34 
37 
46 
43 
53 
21 
19 
18 
24 
22 
19 
14 
20 
25 
18 
13 
18 
25 
28 
45 
44 
45 
41 

Cts. 
55 
55 
50 
54 
67 
55 
47 
45 
45 
38 
41 
49 
50 
57 
64 

5; 

60 
34 
32 

82 
37 
33 
29 
27 
32 
42 
29 
31 
32 
40 
49 
58 
58 
50 
47 

Ots. 
84 
79 
78 
81 
90 
80 
80 
69 
73 
59 
62 
71 
77 
79 
91 
82 
82 
63 
60 
57 
64 
61 
55 
52 
57 
60 
50 
51 
55 
65 
64 
83 
83 
70 
.   59 

Cts. 
80 
76 
73 
81 
97 
75 
74 
71 
70 
58 
65 
74 
74 
85 
90 
86 
83 
56 
50 
52 
61 
60 
49 
49 
59 
55 
50 
50 
54 
62 
70 
85 
81 
69 
76 

Cts. 
71 
69 
66 
•70 
83 
63 
63 
60 
59 
52 
58 
65 
68 
76 
82 
78 
85 
46 
40 
38 
53 
52 
45 
36 
44 
58 
40 
36 
45 
53 
56 
71 
63 
55 
63 

Cts. 
90 
82 
80 

83 

Rhode    Island    

Connecticut     

New   York    

New   Jersey   

Pennsylvania    

Delaware     

Maryland    _. 

95 
83 
77 
71 
68 
61 
63 

73 

77 

82 

91 

83 

Florida    

Ohio     

87 

58 

Indiana 

54 

Illinois . -_ 

55 

Michigan -         _  - 

65 

Wisconsin ._ 

60 

Minnesota 

53 

58 

60 

North  Dakota   __    

60 

53 

Nebraska    

55 

63 

Kentucky     . 

.  63 

61 

Alabama 

78 

72 

Louisiana     . 

Texas    

70 
80 

26 
43 
59 

60 
48 
64 

51 
66 

90 
76 
71 
80 
1.05 
72 
70 
76 
77 
88 

55 
72 
86 
78 
70 
90 
1.00 
87 
87 
86 
80 
91 

51 
58 
95 
66 
60 
90 

1.10 
84 

1.00 
75 
80 
80 

70 

Arkansas _  — 

47 
70 
61 
40 

72 

37 
60 
78 
36 
55 

72 

Montana 

Wyoming _. 

80 
76 

78 

New  Mexico 

84 

Arizona 

97 

Utah    

58 

51 

63 

81 
90 

Washington     

60 
56 

55 

57 
56 
53 

59 

57 
61 

79 

Oregon    

80 
90 

General  average  

39.4 

21.5 

35.7 

60.6 

57.9 

48.0 

61.8 

Under  existing:  conditions  the  blindest  course  that  an  employer 
of  labor  can  pursue  is  to  decline  to  recognize  labor  unions  as  the 
controlling  influence  in  the  labor  market  and  to  insist  upon  dealing 
only  with  his  particular  employes. — Hon.  Wm.  H.  Tuft,  at  Cooper 
Union,   New   York   City. 

I  do  not  know  any  place  which  thrills  one's  bosom  with  patriotic 
ecstasy  as  the  sepulchre  of  the  unknown  dead  In  Arlington  Ceme- 
tery. The  thought  of  the  heroism  and  sacrifice  of  those  who, 
without  a  murmur  and  without  even  hope  of  personal  creilit  or 
glory,  gave  up  all  to  maintain  a  sacred  cause,  makes  all  motives 
of  personal  advancement  of  ambition  seem  small  and  sordid.— 
Hon.  Wm.   H.   Taft,   at   Riverside   Park,  New  York   City. 

• 

If  I  am  elected  President,  I  shall  urge  upon  Congress,  with  every 
hope  of  success,  that  a  law  be  passed  requiring  a  filing  in  a  Fed- 
eral office  of  a  statement  of  the  contributions  received  by  com- 
mittees and  candidates  in  elections  for  members  of  Congress  and 
in  such  other  elections  as  are  constitutionally  within  the  control 
of  Congress. — From  Hon.  Wm:  H.  Taft's  speech  accepting  presi- 
dential  nomination. 


Anything  that  makes  capital  idle,  or  which  reduces  or  destroys 
it,  must  reduce  both  wages  and  the  opportunity  to  earn  wages. 
It  only  requires  the  effects  of  a  panic  through  which  we  are 
passing,  or  through  which  we  passed  in  INftM  to  lS7:i,  to  nIkiw  how 
closely  united  in  a  common  interest  we  all  are  in  modern  society. 
We  are  in  the  same  boat,  and  financial  and  business  storms  which 
affect  one  are  certain  to  affect  all  others.— Hon.  Wm.  11.  Taft,  at 
Cooper   Union,  New   York   City. 


STATISTIC  A T,  STATEM  E  NTS . 


329 


Annual  average  of  wholesale  prices  during  calendar  years. 

[The  figures  presented  in  this  table  are  the  annual  average  wholesale  price 
of  each  article  in  the  year  named.  They  are  based,  for  the  earlier  years,  upon 
the  Aldrich  table*,  and  in  the  later  years  upon  the  quotations  of  the  Labor 
Bureau  of  the  Department  of  Commerce  and  Labor.  The  annual  averages 
are  the  result  of  the  combination  of  a  large  number  of  quotations  made  at 
various  periods  during  the  years  in  question.*-] 


Articles 


1900. 


1903. 


1908. 


Food,    etc. : 

Butter,  creamery  extra lb- 
Coffee,  Rio,  fair  and  No.  7- —lb- 
Flour,    wheat   bbl_ 

Flour,   rye  bbl_ 

Fruit: 
Apples,    evaporated   lb- 
Currants    lb- 
Raisins,    California,    London 

layers box. 

Lard,    prime  lb- 
Moat: 
Beef,   fresh,  native  sides lb- 
Salt,   extra  mess  bb!_ 

Ham  lb- 
Pork,   salt,   mess bbL 

Baeon lb- 
Molasses,    New  Orleans, 

prime gal- 
Rice  lb- 
Salt     bbl_ 

Spices: 
Nutmegs lb- 
Pepper lb- 
Starch,   pure lb- 
Sugar: 

96°   centrifugal   lb. 

Refined,  granulated lb- 
Tallow  lb- 
Farm  products: 
Wheat,   cash  bush- 
Wheat,     No.      2,     re  I     win- 
ter   ., bush- 
Wheat,       contract      grades, 

cash bush- 
Corn,  No.  2,  cash bush- 
Oats,   cash  bush- 
Rye,  No.  2,  cash bush- 
Barley,  by  sample bush. 

Flaxseed,  No.  1  bush- 
Cattle: 

Steers,  choice  to  extra 100  lbs. 

Steers,  good  to  choice 100  lbs_ 

Hogs: 

Heavy 100  lbs. 

Light  1U0  lbs- 
Sheep  : 

Native   a 100  lbs. 

Western  b  loo  lbs. 

Hides,     green,     salted,     pack- 
ers' heavy  native  steers lb- 
Hay,    timothy,    No.    1 ton- 
Hops,       New       York       State, 

choice lb.' 

Cotton,  upland,  middling lb- 
Wool: 
Ohio,   Medium  fleece, 

scoured lb- 
Ohio,    fine   fleeced,    scoured lb- 
Cloths   and  clothing: 

Bags,  2-bush.,  Amoskeag each- 
Boots  and  shoes: 

Men's   brogans    pnir_ 

Men's  split  boots  doz  pairs. 

Womens  solid  grain  shoes__ pair. 

Calico,   Cocheco  prints  c yd_ 

Carpets: 

Ingrain,   2-ply,    Lowell yd_ 

Wilton,   five-frame  Bigelow yd_ 

Cotton      thread,      6-cord,      200 

yards,  J.  &  P.  Coats spool- 
Denims,  Amoskeag ycL 

Drillings,    Stark  A    yd. 

Ginghams,    Amoskeag   yd. 


Dollars 

0.2276 

.1793 

5.1856 

3.3646 

.1136 
.0178 

2.3604 
.0633 

.0688 

6.9593 

.0996 

12.1502 


.3512 
.0305 
.7921 

.6317 
.1151 
.0546 

.0546 

.06165 


.8933 
.983 

.8933 

.3950 
.3106 
.5147 
.5062 


4.8697 
4.1375 


3.9534 

3.9260 


4.52S4 
4.6644 


.0933 


.2621 
.11089 


.6113 
.7156 

.1594 

1.0500 

17.000 

.0650 

.6180 

1.9200 

.0315 
.1175 
.0640 
.0625 


Dollars 

0.2245 

.0822 

3.8-123 

3.4250 

.0615 

.0720 

1.5208 


.0804 

9.7538 

.1025 

12.5072 

.0752 

.4775 

.0548 

1.0010 


.1291 
.0500 

.04572 
.05332 
.0485 

.7040 

.804 

.7040 
.3811 
.2271 

.5177 
.4815 


5.7827 
5.3938 


5.0815 
5.1135 


4.1238 

4.5207 


.1194 
11.5673 


.1483 

.09606 


.5296 
.6504 

.1575 

.9375 

18.000 

.9042 

.4920 
1.8720 

.08*2 

.1073 
.0542 
.0515 


Dollars 

0.2348 

.0559 

4.3303 

3.1479 

.0611 
.0478 

1.4458 
.0877 

.0784 

9.0673 

.1271 

16.6514 

.0959 

.3546 
.0536 
.6140 

.2877 
.1289 
.0507 

.03720 

.01641 
.0510 

.78955 

.853 

.7895 
.4606 
.3541 
.5156 
.5194 
1.0471 

5.5678 
5.0615 

6.0572 
6.0541 

3.7101 


.1169 
12.4279 


.11235 


.4658 
.6546 

.1458 

.9250 

18.500 

.0504 

.5136 

2.0080 

.0372 
.1127 
.0581 
.0550 


Dollars 

0.2711 

.08218 

5.4183 

4.7375 


1.8100 


.0934 
13.1837 

.1125 
15.9736 

.0901 

.3550 

.0624 

.7854 


.0715 
.0575 

.04064 
.01940 
.0551 


1.0488 


.6843 
.5095 
.7825 
.7336 
1.2019 

6.8163 
5.9976 

5.7986 
5.6346 

4.9505 
4.8115 

.1336 
12.3365 

.1188 
.10403 


.7163 

.1879 

1.1354 


.0519 

.5540 
2.2160 

.0408 
.1160 
.0718 
.0548 


a  After  l0o"7   "Wether's,    good  to   fan<*y."     b  After   1907  "Wether's  plain   to 
choice." 

o  After  1903  "American  Standard,"  64  by  64. 


330 


STATISTICAL  STATEMENTS. 

Annual  average  of  wholesale  prices — Continued. 


Articles 

1890. 

1900. 

1903. 

1908. 

1910. 

Dollars 

Dollars 

Dollars 

Dollars 

Dollars 

Print       eloths,       28-ineh,       64 

by  64  yd„ 

.0334 

.0308 

.0321 

.0334 

.03S2 

Shirtings,    bleached,    4-4    Fruit 

of    loom    yd— 

Shirtings,    bleached,    4-4   Lons- 

.08-45 

.0753 

.0767 

.0913 

.0917 

daJe  — , T yd— 

.0845 

.0731 

.0755 

.0873 

.0892 

Tickings,     Amoskeag,     A.     0. 

-    --r.    -    yd.. 

.1200 

.1084 

.1104 

.1125 

.1285 

Women's  drees  goods: 

Cotton     warp     alapaca,      22 

In.  Hamilton  _ _ „ yd— 

.0735 

.0711 

.0690 

(c) 

(c) 

Cotton        warp        cashmere, 

22  in.  Atlantic  F yd- 

.1813 

.1642 

.1679 

.2107 

.2279 

Cotton    warp    cashmere,     27 

In.  Hamilton  d _yd__ 

.0980 

.0832 

.0894 

.1911 

.1911 

Cashmere,      all      wool,     At- 

lantic  J   e   yd— 

.3479 

.3459 

.3320 

.3185 

.3675 

Fuel  and  lighting: 

Coal,  anthracite  stove ton- 

3:7108 

3.9451 

4.8245 

4.8226 

4.8178 

bituminous ton- 

2.9875 

2.9083 

4.1375 

3.0792 

3.0467 

Metals  and  Implements-: 

N&Ils,  cut 100  lbs- 

2.2875 

2.2500 

2.1958 

1.9'00 

1.8138 

Wire  100  lbs- 

2.9046 

2.6333 

2.0750 

2.10.0 

1.8875 

Barbed  wire: 

galvanized 100  lbs— 

3.5665 

3.3912 

2.7375 

2,6217 

2.1325 

Pig  iron,  No.  1  foundry. ..ton- 

18.4083 

19.9800 

19.9158 

17.7000 

17.3617 

Steel  rails ton- 

31.7792 

32.2875 

28.0000 

28.0000 

28.0000 

Bar        iron,        best        refined 

(Philadelphia)  lb- 

.0205 

.0196 

.0200 

.0170 

.0185 

Copper,  sheet lb- 

.2275 

.2067 

.1917 

.W92 

.1803 

Quicksilver  lb- 

.7300 

.6769 

.6342 

.6100 

.6492 

Lead,  pig lb- 

.0440 

.0445 

.0128 

.0422 

.0448 

Lead  pipe 100  lbs.. 

5.4000 

5.1208 

5:1958 

4.7400 

5.0608 

Saws,    hand,    Disston's doz_. 

12.400 

12.600 

12.630 

12.95 

12.95 

Shovels,   Ames'  No.   2 doz„ 

7.8700 

9.1200 

8.0200 

7.8217 

7.7383 

Spelter  (Western)  lb- 

.0554 

.0442 

.0558 

.0475 

.0563 

Lumber  and  building  materials: 

White  oak,  plain  M.  feet- 
Pine  boards,  white M.  feet- 

37,8750 

40.8333 

44.8333 

49,2917 

54.2500 

44.0833 

57.5000 

80.0000 

(e) 

(O 

Shingles,  white  pine M— 

3.8417 

4.0000 

a3.650O 

(e) 
W 

(c) 

Doors,   pine  each— 

1.3750 

1.5900 

1.7292 

(c) 

Lime,  common bbl„ 

.9792 

.6833 

.7875 

1.0450 

1.0150 

Brick,  common  domestic M— 

6.5325 

5.2500 

5.9063 

5.1012 

5.71S8 

Cement,  Rosendale bbl„ 

1.0542 

1.0167 

.8893 

.95 

.9458 

Rope,  Manila,  7-16-inch  f lb- 

.1494 

.1320 

b  .1146 

.1015 

.0879 

Putty  lb- 

.0175 

.0190 

.0110 

.0120 

0115 

Carbonate  of  lead  in  oil lb— 

.0638 

.0625 

.0615 

.0650 

.0892 

Turpentine,  spirits  of gal- 

.4080 

.4771 

.5715 

.4533 

.6829 

Shingles,   cypress,   r M— 

Drugs   and  chemicals: 

3.35 

2.85 

2.5067 

3.5375 

3.4917 

Alcohol  gal- 

2.0717 

2.3867 

2.3958 

2.^367 

2.5525 

Brimstone,   crude  ton.. 

21.1453 

21.1458 

22.3333 

21.7917 

22.0000 

Glycerin,   refined  lb- 

.1767 

.1*15 

.1446 

.1492 

.21*2 

Linseed  oil,  domestic,  raw gal- 

.6158 

.6202 

.4167 

.4375 

.8467 

Opium,  natural  (cases) lb- 

2.6208 

3.2000 

3.0*13 

4.7146 

5.370S 

Quinine   OZ— 

.3275 

.3325 

.25*5 

.1567 

.110) 

Sulphuric  acid lb- 

.0088 

.0120 

.0127 

.0102 

.0100 

Furniture: 

Chairs,  bedroom,  maple doz„ 

7.000 

8.000 

7.917 

9.117 

9.000 

Chairs,  kitchen doz__ 

4.2000 

5.2080 

5.0000 

6.0000 

5.5000 

Tables,  kitchen     doz.. 

15.000 

15.600 

15.600 

18.00 

20.00 

Glassware: 

Tumblers,  1-3  pint doz__ 

.1800 

.1800 

.1767 

.1325 

.1200 

Palls,    wooden   doz__ 

1.5917 

1.4917 

1.5875 

2.1000 

1.9000 

Tubs,  wooden  .__ nest  of  3— 

1.6500 

1.4417 

1.4500 

1.65 

1.6125 

Miscellaneous: 

.8379 

.9817 

.9054 

.8708 

1.9075 

a  Michigan  white  pine  16  inches  long,  XXXX. 

d  After   1903   "36  In.    Hamilton." 

e  After  1907  "8-9  twill,  35-inch  Atlantic  mills." 

f  After  1907  "base  sizes." 

Z  Prices  at  Southern  mills. 


b  7-16  inch.      o  Not  stated. 


The  farmer  of  the  West  has  learned  and  the  farmer  of  the 
South  ought  to  learn  that  when  the  factory  is  closed  he  not  only 
horses  customers  for  his  products,  hut  also  meets  additional  coma 
pHiiors  in  his  production.  The  worklngman,  losing  his  employ* 
incut  in  the  faettftfy,  softies  tipon  a  truck  farm  and  bccOmc*  ft 
producer  of  the  products  he  formerly  houglit  from  the  farmed. 
The  prosperity  of  the  farmer  depends  upon  the  prosperity  of  those 
who  buy  his  products. — Hon.  P.  P.  Campbell,  in  Congress,  April  1, 
11)04. 


STATISTICAL  STATEMENTS. 


331 


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STATISTICAL  STATEMENTS. 


333 


TJADE   BALANCES    UNDER   PROTECTION    AND    LOW    TARIFF,    RESPECTIVELY, 

1790-1912. 

Years  in  which  low  tariffs  and  protective  tariffs,  respectively, 
have  been  in  operation  in  the  United  States,  shotting  the  excess 
of  imports  or  exports  in  each  year  and  the  total  excess  of  im- 
ports or  exports  under  each  system. 

[Compiled  from  official  statements  of  the  Bureau  ol  Statistics.] 


Low  tariffs. 

Fiscal  year. 

Protective  tariffs. 

Fiscal   year. 

Excess  ol 
imports. 

Excess  of 
exports. 

Excess  of 
imports. 

Excess  of 
exports. 

1790 

$2,794,844 

10,187,959 

10,746,902 

4,990,428 

1,556,275 

21,766,396 

22,861,539 

24,084,096 

7,224,289 

403,626 

20,280,998 

18,342,998 

4,376,189 

8,866,633 

7,300,926 

25,033,979 

27,873,037 

30,156,850 

34^559,040 

7",  196, 767 

18,642,030 

"r..    ■    ■      '■' 

1813 

$5,851,017 

1791 

1814 

1815 

1816 

1825 

$6,037,559 
60,483,521 
65,182,948 

1792 

1793 _ 



1794 

549,023 

1795 

1826 

1827 

5,202,722 

1796 

2,977,009 

1797-     _ 

1828 

1829 

1830 

16,998,873 

1798 

1799 

345,736 
8,949,779 

1800 

1801 

1802 

1803- 

1831 

1832 

1833 

1843 

23,589,527 
13,601,159 
13,519,211 

i6~392~225 

1804 _ 

1844 

3,141,226 

1805 

1834 

1846* 

1862 

1863 

1864 

1865 

1866 

71,440,211 
41,650,409 

39~371~308~ 
157,609,295 

1806 

1807 

1808 

1809 _ 

1,313,824 

1810_        

72,716,277 
85,952,544 

101,254,955 
75,483,541 

131,388,682 
43,186,640 
77,403,506 

182,417,461 

119,656,288 

""l9^562J725 " 

1811 

$7,916,832 

1812 

1817 

38,502,764 
11,578,431 
28,468,867 
16,9S2,479 
4,758,331 

1867 

1868 

1869 

1870 

1871 

1872 

1873 

1874 

1875 



1818 



1819 _ 

1820 

1821 

75,489 

1822 

18,521,594 
4,155,328 
3,197,067 
6,349,485 
21,548,493 
52,240,450 
19,029,676 

1823 

1824 



18,876,698 

1834 

1876 

1877 

1878 

1879    _ 

79,643,481 

1835 

151,152,094 

1836 

257,814,234 

1837 

264,661,666 

1838 

9,008,282 

1880 

1881  _ 



107,683,912 

1839 

44,245,283 

259,712,718 

1840 

25,410,226 

1882      

25,902,683 

1841 

11,140,073 

1883 

1884 

1885 

1S86-     

100,658,488 

1842  ..     

3,802,924 

72,815,91« 

1846 

4,165,408 

164,602.42a 

I847___ 

34,317,249 

44,088,694 

1848 

10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54,604,582 

38~43i~290~ 
20,040,062 
69,756,709 

1887 

1888 

1889 

1890 

2,730,297 

23,863,443 

1849 

1850    _. 

:s::z::::z: 

1851 

68,518,275 

1852 

1891 

1892 



39,564,614 

1853 

202,875,686 

1854 __ 

1893 

18,735,728 

1855 __ 

1894 

1898 

237,145,950 

1856 



615,432,676 

1857 

1899 

1900 



529,874,813 

1858 

8,672,620 

544,541,898 

1859 

1901 

664,H92,826 

1S60 

1861 

1902 

1903 



478,398,453 
394,422,442 

1895 . 

75,568,200 
102,882,264 
286,263,144 

1904 

469,739,900 

1898      

1905 

1906 

1907 

1908 

1909 

-------- 

401,048,505 

1897 

517,302,054 

446,429,653 
666,431,554 
351,090,880 

1910 

1911 



188,037,290 
522,094,094 

1912 



550,967,475 

Total 

1,068,872,171 

553,917,230 

Total 

1,371,397,654 

9,583,565,420 

EXCESS     OF    IMPORTS    UNDER    LOW    TARIFF,     AND    EXCESS    OF    EXPORTS 
UNDER  PROTECTION. 

Net  excess  of  imports  under  low  tariffs $514,954,941 

Net  excess  of  exports  under  protective  tariffs 8,212,167,766 

Net  excess  of  exports  over  imports  from  1789  to  March  1,  1897. 383,028,497 

Net  excess  of  exports  over  imports  from  March  1,  1897,   to  March 

1,  1912 7,847,022 ,349 


334 


STATISTICAL  STATEMENTS. 


Years' iii  which  low  tariffs  and  protective  tariffs,  respectively, 
have  been  in   operation  in  the  United  States,  showing  the 
excess  of  expenditures  or  receipts  of  the  Government  in  each 
year. 
[Compiled  from  official  statements  of  the  Treasury  Department.] 


Low  tariffs 


Fiscal  year 


1791- 
179-2- 
1793_ 
1794. 
179PL 
1298. 
1797. 
179S. 
1799. 

imo_ 

1801. 

urn. 
i803_ 

1801. 
1805. 
1806. 
1>07_ 
1808. 
1869- 
1810- 
1811. 
1812. 
1817. 
1818. 
1819. 
1820. 
1821. 
1822. 


1824.... 
1834___. 
1835_ __. 


1837 

1838 

12,289,061 
7,562,152 

1839 

1840 

1841 

1842 

4,834,402 
9,621,657 
5,158,689 

18t6<half  year) 

1847 

28,453,331 
11,919,521 
12,778,001 

1848 

1849 

1850 

1851 

1852 

1853 

1854 

1855 

1856 

1857_ _ 



1858^ 

27,327,126 
16,216,492 
7,146,276 
25,173,914 
42,895,223 
25,203,246 
18,052,455 

:  i  i  i  i  : 

!  !  !  :  1  1 

i  i  i  i  i  i 

llllli 

Deficit 


$4,599,900 


845,917 
1,195,0C6 


1,71;, 004 


2,507,273 


44,685 
1,276,173 


892,489 


Surplus 


$1,312,499 
~"805~993" 


2,586,879 

2,(a>0,151 

292,909 

34 /ni" 

3,541,831 
7,019,542 
3,111,811 
3,188,399 
4,546,344 
6.110,753 
8,043,868 
7.999,249 


909,461 
,244,594 


13,108,157 
1,566,543 
3,091,370 


5,231,996 
5,834,036 


3,164,365 
17,857,274 
19,958,632 


4,585,967 


1,219,392 

I    War  pe 
j        riod. 

2,644,506 
4,803,561 
5,456,563 
13,843:043 
18,761,988 
6,719,912 
5,330,349 
1,330,904 


Protective  tariffs 


Fiscal  year 

Deficit 

1813_ 

1814 

1815 

1816 

$17,341,442 
23,539,300 
17,216,744 

1825 __  . 

1826 

1827 



1828 

1S29 

1830 

1831 

1832 



1833 

1843 

1814 

1845 

1846(half  year) 

3,549,091 

1852 i 

117,650,981 
7;06,639,331 
321,553,130 
973,038,131 

1863 

1864— . 

1865 

1866 

1867_ __ 

1868 

1869 

1870 



1871 

1872 

1S73 

1874 

1,297,799 

1875 

1876 

1877 

1878 

1879 

1880 — 

1881 

1882 



1883 

1884 

1885 

1886 . 

1887 

1888 

1889 



1890- 

1891 . 

1892 

189.3  _ 

i    i    i    i 

III! 

MM 

i   i  i  i 

■   i  i  i 
i   i  ■  i 

60,S0V^1 
38,0:7,247 
89,111,560 

1902. 

1903 

1904 

1905 

1P06 

18  J53"335~ 

1907 

190S _. 

1909 

1910 

1911 

'20"0Ur667~ 
.58,734,955 

Surplus 


War  pe- 
riod. 

$16,480,6:0 
5,983,640 
8,222,575 
6,827,198 
8,369,087 
9,643,574 
9,702,00S 
13,289,004 
14,578,500 
10,930,874 

""6^837^148 
7,034,278 
1,214,392 

!    War  pe- 
riod. 

927,208 

116,317,354 

6,095,320 

35,997,658 

102,302,829 

91,270,711 

94,131,534 

36,933,348 


9,397,379 

24,965,503 

39,666,167 

20,482,449 

5,374,253 

68,678,884 

101,130,658 

145,543,811 

132,879,444 

104,393,626 

63,463,775 

93,9.56,589 

103,471,093 

119.612,118 

105,053,443 

105,344,498 

37,239,763 

9,914,454 

2,341,674 


\  War  pe- 
I  riod. 
79,527,080 
77,717,984 
91,287,376 
54,307,852 
7,479,093 


45,312,517 
111.420,531 


15,808,384 

47,234,377 


All  the  prosperity  enjoyed  by  the  American  people— absolutely 
all  the  prosperity,  without  any  reservation  whatever— from  the 
foundation  of  the  United  States  Government  down  to  the  present 
time,  has  been  under  the  reign  of  protective  principles;  and  nil 
the  hard  times  suffered  by  the  American  people  in  the  same  period 
have  been  preceded  either  by  a  heavy  reduction  of  duties  on 
imports  or  by  insufficient  protection,  thus  refuting  all  free-trade 
theories  on  the  subject.  As  I  desire  my  native  land  to  be  on  the 
apex  of  prosperity,  rather  than  under  the  heel  of  hard  times,  I 
am  a  protectionist.— David  H.  Mason,  in  the  "American  Economist." 


STATISTICAL  STATEMENTS. 


335 


Table  No.  1 — Total  value  of  imports  and  exports  into  and  from 
the  United  States  from  Octoder  1,  1189,  to  June  30,  1912,  by 
Presidential  administrations. 


Fiscal 
year. 


790_. 
791- 

792.. 
793- 
794- 
795_. 

797- 

798- 

799-. 

800- 

801_ . 

802_. 

803- 

804- 

.805-. 

806_. 

807_. 

808- 

809- 

810-. 

811- 

812_. 

81 3„ 

814_. 

815.. 

816- 

817- 

818— 

819- 

820.. 

821.. 

822— 

823.. 

824— 

825.. 

826.. 

827.. 

828- 

829.. 

830„ 

831_. 

832__ 

833— 

834- 

835.. 

S36-. 

837— 

838— 

839.. 

840— 

841.. 

842— 

843.. 

844— 

845— 

846— 

847.. 

848- 

849— 

850— 

851— 

852— 

853— 

854— 

855.. 

856- 

857.. 

858- 

859- 

860- 

S61- 

862.  . 

863.. 

864:.. 

866- 
867-. 
868-. 


Merchandise. 


Imports. 


$23,000,000 

29,200,000 

31,500,000 

31,100,000 

34,600,000 

69,756,268 

81,436,164 

75,379,406 

68,551,700 

79,069,148 

91,252,768 

111,363,511 

76,333,333 

64,666,666 

85,000,000 

120,600,000 

129,410,000 

138,500,000 

56,990,000 

59,400,000 

85,400,000 

53,400,000 

77,030,000 

22,005,000 

12,965,000 

113,041,274 

147,103,000 

99,250,000 

121,750,000 

87,125,000 

74,450,000 

54,520,834 

79,871,695 

72,481,371 

72,169,172 

90,189,310 

79,093,511 

71,332,938 

81,020,083 

67,088,915 

62,720,956 

95,885,179 

95,121,762 

101,047,943 

108,609,700 

136,764,295 

176,579,154 

130,472,803 

95,970,288 

156,496,956 

98,258,706 

122,957,544 

96,075,071 

42,433,464 

102,604,606 

113,184,822 

117,914,065 

122,424,349 

148,638,644 

141,206,199 

173,509,526 

210,771,429 

207,440,398 

263,777,265 

297,803,794 

257,808,708 

310,432,310 

384,428,342 

263,338,654 

331.333,341 

353,616,119 

289,310,542 

189,356,677 

243,335,815 

316,447,218 

238,745,580 

434,612,000 

395, 76], 096 

357,436,440 

417,506,379 


Exports. 


$20,205,156 

19,012,041 

20,753,098 

26,109,572 

83,043,725 

47,989,872 

58,674,625 

51,294,710 

61,327,411 

78,665,522 

70,971,780 

93,020,513 

71,957,144 

55,800,033 

77,699,074 

95,566,021 

101,536,963 

108,343,150 

22,430,960 

62,208,233 

66,757,970 

61,316,882 

38,527,236 

27,856,017 

6,927,441 

52,557,753 

81,920,052 

87,071,569 

93,281,183 

70,142,521 

69,691,669 

54,596,323 

61,850,101 

68,326,043 

68,972,105 

90,738,333 

72,890,789 

74,309,947 

64,021,210 

67,434,651 

71,670,735 

72,296,652 

81,520,603 

87,528,732 

102,260,215 

115,215,802 

124,338,704 

111,443,127 

104,978,570 

112,251,673 

123,668,932 

111,817,471 

99,877,995 

82,825,689 

106,745,882 

106,040,111 

109,583,248 

156,741,598 

138,190,515 

140,351,172 

144,375,726 

188,915,259 

166,984,231 

203,489,282 

237,043,764 

218,909,503 

281,219,423 

293,823,760 

272,011,274 

292,902,051 

333,576,057 

219,553,833 

190,670,501 

£03,964,447 

153,837,988 

166,029,803 

348,859,5^ 

294,5d6,14i 

281,952,899 

286,117,697 


Excess  of 
Imports. 


$2,794,884 

10,187,959 

10,746,902 

4,990,428 

1,556,275 

21,766,396 

22,861,529 

24,084,696 

7,224,289 

403,626 

20,280,988 

18,342,998 

4,376,189 

8,866,633 

7,300,926 

25,033,979 

27,873,037 

80,156,850 

84,559,040 

7,196,767 

18,642,030 


88,502,764 


6,037,559 
60,483,521 
65,182,948 
11,578,431 
28,468,867 
16,982,479 

4,758,831 

18752l7594~ 

4,165,828 
8,197,067 


Excess  of 
exports. 


$7,916,832 


5,851,017 


6,202,722 


16,998,873 


23,589,527 
13,601,159 
13,519,211 
6,349,485 
21,548,493 
62,240,450 
19,029,676 


44,245,283 
li"l46"073 


T,144,211 
8,330,817 


10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,963 
60,760,030 
38,899,205 
29,212,887 
64,604,582 


38,431,290 
20,040,062 
69,756,709 


39,371,368 

157,609,295 
72,716,277 
85,952,544 

101,254,955 
75,483,541 

131,388,682 


75,489 


549,023 


2,977,009 


345,736 
8,949,779 


9,008,282 
"25^410^226 


3,802,924 
40,392,225 
3,141,226 


34,317,249 


8,672,620 


1,313,824 


Fiscal 
year 


1790. 
1791. 
1792. 
1793 
1794- 
1795. 
1796. 
1797- 
1798- 
1799- 
1800- 
1801. 
1802. 
1803. 
1804- 
1805. 
1806- 
1807- 
1808. 
1809. 
1810. 
1811. 
1812. 
1813. 
1814- 
1815. 
1816- 
1817- 
1818. 
1819. 
1820. 
1821. 
1822. 
1823. 
1824. 
1825. 
1826- 
1827. 
1828., 
1829. 
1830.. 
1831.. 
1832- 
1833- 
1834- 
1835-. 
1836- 
1837- 
1838- 
1839- . 
1840- 
1841- 
1842.. 
1843- 
1844- 
1845_ . 
1846- 
1847- 
1848- 
1849- 
1850- 
1851.. 
1852.. 
1853- 
1854- 
1855. . 
1856- . 
1857- 
1858- 
1859- 
1860- 
1861- 
1862- 
1863- 
1864- 
1865— 
1866- 
1867— 
1P6S__ 
1869— 


o> 


336 


STATISTICAL  STATEMENTS. 


Table  No.  1 — Total  value  of  imports  and  exports  into  and  from 
the  United  States  from  October  1,  1189,  to  June  SO,  l'JIJ, 
by  Presidential  administrations. — Continued. 


Fiscal 
year 


Merchandise. 


Imports. 


Exports. 


Excess  ol 
imports. 


Excess  of 
exports. 


Fiscal 
year. 


1870. 
1871. 
1872- 
1878. 
1874. 
1875. 
1876. 
1877-. 
1878.. 
1879.. 
1830.. 
18S1_. 
1*82. . 
1883_. 
1884.. 
1885.. 
1886.. 
1887-. 
1888.. 
1889_ . 
1890_. 
1S91-. 
1892. . 
1893- 
1894_  . 
1895__ 
1896.. 
1897_. 
1898. . 


190O_. 

j    1901_. 

^    1902_. 

1903.. 

1904.  . 

1905.. 

i    1906_. 

§  I    1907.. 

i    1908.. 

1909.. 

1910.. 

,    1911.. 

^     I    1912. . 


at       I 

o        I 

II 

■*_•  r 

m 


03  O 


fi 


i{ 


485,958,408 

520,223,684 

626,595,077 

■*  642,136,210 

*  567,4€6,342 

533,006.436 

460,741,190 

451,323,126 

$437,051,532 

445,777,775 

667,954,746 

642,664,628 

724,639,574 

723,180,914 

667,697,693 

577,527,329 

635,436,136 

692,319,768 

723,957,114 

745,131,652 

789,310,409 

844,916,196 

827,402,462 

866,400,922 

654,994,622 

731,969,905 

779,724,674 

764,730,412 

616,049,654 

697,148,489 

849,941,184 

823,172,165 

903,320,948 

1,025,719,237 

991,087,371 

1,117,513,071 

1,226,562,446 

1,434,421,425 

1,194,341,792 

1,311,920,224 

1,556,947,430 

1,527,226,105 

1,653,264,934 


Total 46,292,548,308 


392 

442 

444 

522 

586 

513 

540 

602 

$694 

710 

835 

902 

750 

823 

740 

742 

679, 

716, 

695, 

742, 

857, 

884, 

1,030, 

847, 

892, 

807, 

882, 

1,050, 

1,231, 

1,227, 

1,394, 

1,487, 

1,381, 

1,420, 

1,460 

1,518, 

1,743, 

1,880, 

1,860 

1,663 

1,744 

2,049, 

2,204 


771,768 
820,178 
177,586 
479,922 
283,040 
442,711 
384,671 
,475,220 
,865,766 
,439,441 
,638,658 
,377,346 
,542,257 
,839,402 
,513,609 
,189,755 
,524,830 
,183,211 
,954,507 
,401,375 
,828,684 
,480,810 
,278,148 
,665,194 
,140,572 
,538,165 
,606,938 
,993,556 
,482,330 
,023,302 
,483,082 
764,991 
719,401 
141,679 
827,271 
561,666 
864,500 
851 ,078 
773,346 
011,104 
984,720 
320,199 
322,409 


43,186,640 

77,403,506 

182,417,491 

119,656,288 


18,876,698 


19,562,725 


28,002,607 
2,730,277 


79,643,481 
151,152,904 
$257,814,234 
264,661,666 
167,683,912 
259,712,718 

25,902,633 
100,658,488 

72,815,916 
164,662,426 

44,088,694 

23,863,443 


68,518,275 

39,564,614 

202,875,686 


18,735,728 


237,145,950 
75,568,200 
102,882,264 
286,263,144 
615,432,676 
529,874,813 
544,541,898 
664,592,826 
478,398,453 
394,422,442 
469,739,900 
401,048,595 
517,302,054 
446,429,653 
666,431,554 
351,090,880 
188,037,290 
522,094,094 
551,057,475 


1870.. 
1871- 
1872— 
1873— 
1874— 
1875.. 
1876.. 
1877— 
1878- 

1879.. 

1880. 

1881- 


1884- 

1885. 
18S6. 
1887.. 
1888— 
1889. 
1890— 
1891.. 
1892- 
1893- 
1894- 
1895.. 
1896. _ 
1897— 
1898- 
1899— 
1900— 
1901- 
1902_  _ 
1903— 
1904- 
1905— 
1906— 
1907.. 


1910.. 
1911.. 
1912— 


53,989,851,733 


7,697,303,425 


Total. 


That  higher  wage  level  aimed  at  by  the  fathers  of  the  Republic, 
the  policy  of  protection,  which  they  Inaugurated,  secured,  and  still 
maintain.—- Hon.  Georfge  H.  Ely,  of  Ohio,  in  the  "American  Econ- 
omist." 

I  do  not  apologize  for  my  position  touching  the  protective 
policy.  The  Wilson  hill  was  enacted  into  law.  Some  of  us 
recalled  what  that  hill  did,  or  was  the  most  natural  factor 
in  doing.  It  closed  and  bankrupted  the  entire  industries 
of    the    country. — Ex-Speaker    Cannon. 

There  are  more  than  twenty-five  thousand  local  labor  unions 
in  the  tJnited  States,  with  a  membership  of  more  than  two  millions. 
What  infinite  good  can  be  accomplished  by  this  mighty  army  of 
peace  arid  industry  if  held  true  to  its  opportunity. — Hon.  C.  W.  Pair- 
Fairbanks,   at  Kansas  City,  Mo.,   September  1,  1902. 

By  the  policy  of  fostering  American  industries  the  development 
of  our  manufacturing  interests  have  been  secured;  the  inventive 
genius  of  our  people  has  found  a  field;  American  labor  has  become 
the  best  paid,  and  consequently  our  laborers  are  the  best  housed, 
clothed  and  fed;  and  the  -wonderful  development  and  progress  in 
this  country  in  all  that  makes  a  people  great  have  elicited  the 
admiration  of  the  civilized  world. — Senator  Culloin,  in  the  "Ameri- 
can  Economist." 


Is  there  a  single  measure  promised  in  the  last  platform, 
or  suggested  hy  developments,  that  can  and  would  not  he 
enacted  under  our  time-honored  system  so  soon  as  the 
people  have  reached  anything  approaching  a  mature  con- 
viction as  to  form  and  substance;  and  to  accomplish  such 
..,*«(- »-».  ar«  Trfk  nn  n  i><mm»1c  not  better  dualized  to  select 
men  than  wo  are  to  formulate  measures  t— Hon.  Charles 
Nagel    at   Indianapolis. 


STATISTICAL  STATEMENTS. 


337 


Receipts  and  expenditures  of  the  United  States  Government  from 
1191  to  1912  by  Presidential  terms. 

[From  official  reports  of  the  United  States  Government.] 


gSo 

Year 

ending 

June 

< 

30— 

,       f 

1791 

9 

1792 

£* 

:  1793— 

"S^l 

j 1794 

* 

!  1795—. 

1796 

1797. ... 

1  1 

■s  i 

1798 

1799— 

1800. 

1801. 

1802. 

1803 

1804 

m 

1805 

ti 

1806. 

2. 

1807- 

1808- 

1S09_ 

1810 

1811—. 

a 

o 

1812 

3 

1813 

8 

•1814 

1815 

1816— . 

1817—. 

1818— 

1819 

8 

1820 

9    *S 

1821— 

6     1 

1 1822 

S 

1823— 

1824 

1825. 

II 

1826 

1827 

^      1 

189S 

<J    I 

1829 

1830. 

1831 

a 

1832 

o 

1833 

M    1 

03 

1834 

1835. 

1836- 

53  t!  ^ 

1887- 

1«3* 

1839—. 

>«[ 

1840 

■1841— 

a        1 

11842 

O     tH 

MO 

?«£ 

1843*— 

cs^h 

1844 

W       l 

1845 

f 

1846. 

* 

e} 

1847 

1818 

O  6 

as3 

1849— 

11850 

1851. 

11852 

h^;  I 

!l853 

^    f 

1854. 

il 

11855 

1 1856. 

1 1857 

; 1858 

1859 

1850 

1861 

Total  net 
ordinary 
receipts 


$4,409,951 

3,669,960 

4,652,923 

5,431,905 

6,114,335 

8,420,330 

8,688,781 

7,979,170 

7,546,813 

10,848,749 

12,945,456 

14,995,794 

11,064,098 

11,826,307 

13,560,693 

15,559,931 

16,398,019 

17,060,662 

7,773,473 

9,384,214 

14,422,634 

9,801,133 
14,340,410 
11,181,625 
15,708,459 
47,745,651 

33,366,849 
21,585,171 
21,603,374 
17,840,670 
14,573,380 
20,232,428 
20,540,666 
19,381,213 

21,840,858 
25,260,434 
22,966,364 
24,763,629 
24,827,627 
24,844,117 
28,526,821 
31,867,451 
33,948,426 

21,791,936 
35,430,087 
50,826,796 
24,954,153 
26, 302.. 562 
31,482,750 
19,480,115 
16,860,160 
19,976,197 

8,231,001 
29,320,708 
29,970,106 


26,467,403 
35,698,699 
30,721,077 
43,592,889 
52,555,039 
49,846,816 
61,. 587, 032 
73,800,341 
65,350,575 
74,056,699 
68,965,313 
46,655,366 
52,777,102 
56,054,600 
41,476,299 


Total  net 

ordinary 

expenditures 


$3,097,453 
8,269,870 
3,846,930 
6,297,822 
7,309,601 
5,790,651 
6,003,627 
7,607,586 
9,295,818 

10,813,971 
9,393,500 
7, 976, 252 
7,952,287 
8,637,908 
9,014,349 
9,449,178 
8,354,151 
9,061,413 

10,280,747 
8,474,753 
8,178,040 

20,280,771 
31,681,852 
34,720,925 
32,943,661 
31,196,356 

19,909,892 
20,018,628 
21,512,004 
18,285,535 
15,819,553 
15,000,432 
14,706,630 
20,273,703 

15,857,217 
17,037,850 
16,139,167 
16,394,842 
15,184,054 
15,142,108 
15,237,817 
17,288,950 
23,017,552 

18,627,570 
17,572,813 
30,868,164 
37,243,214 
33,884,715 
26,896,7&3 
24,314,518 
26,074,161 
25,081,189 

11,758,790 
22,483,560 
22,935,828 
26,450,951 

54,384,485 
47,595,999 
43,499,078 
40,948.383 
47,751,478 
44,390,252 
47,743.989 
55,038,355 
58,630,663 
68,726,350 
67,634,409 
73,982,493 
68,993,600 
63,200,875 
66,650,213 


Excess  of 
receipts 


Excess  of 
expendi- 
tures 


$1,312, 


805,993 


,154 
,585 


778 
953 
542 
811 
399 
344 
753 
868 
249 


6,244 


461 
593 


16,480,630 

13,375,977 
1,566,543 
3,091,370 


5,231,996 
5,834,036 


5,983,641 

8,222,575 

6,827,197 

8,368,787 

9,643,573 

9,702,009 

13,289,001 

14,578,501 

10,930,874 

3,164,366 
17,857,274 
19,958,632 


4,585,967 


6,837,148 
7,034,278 
3,249,017 


2,614,506 
4, 803,. 561 
5,455,561 
13.813,043 
18,761,986 
6,719,912 
5,330,349 
1,330,904 


$4,599,910 


865,917 
1,190/466 


1,7' 9, 005 
1,749,005 


2,507,274 


10,479,639 
17,341,442 
23,539  214 

17,235,202!  j  £ 


\t 


444,865 
1,276,173 


892,490 


12,289,061 
7,562,153 


4,834,403 
9, £14, 001 

5,104,992 

3,527,789 


27,917,082 
11,897,3C0 
12,778,001 


27,327,127 
16,216,492 
7,146,276 
25,173,914 


Jfi' 


338 


STATISTICAL  STATEMENTS. 


Receipts  and  expenditures  of  the  United  States  Government  from 
1191  to  1912  by  Presidential  terms — Continued. 


•ah 


1868- 
1869.. 
1870- 
1871. . 
1872_. 
1873.. 
1874- . 
1875.. 
1876- 
1877- 
1878.. 
1879- 
1880- 
1881- 
1882- 
1883- 
1884- 
1885- 
ls86_. 
1887- 
1888- 
1889- 
1890„ 
1891- 
1892_. 
1893„ 
1894- 

1895-. 
1896- 
1897_. 


1910 

1911 

1912 


Total  net 

ordinary 

eceipts 


51,919,231 
112,094,946 
243,412,971 
322,031,158 
519,949,564 
462,846,680 
376,431,454 
357,188,256 
$395,959,834 
374,431.105 
364,691,230 
322,177,674 
299,941,091 
284,020,771 
290,066,585 
281,000,642 
257,446,776 
272,322,137 
333,526,501 
360,782,293 
403,525,250 
398,287,582 
348,519,870 
323,690,706 
336,439,727 
371,403,278 
379,266,075 
387,050,059 
403,080,983 
392,612,447 
351,937,784 
385,819,629 
297,722,019 

313,390,075 
326,976,200 
347,721,705 

405,321,335 
515,960,620 
567,210,852 
587,6S5,338 
562,478,233 
560,396,675 
539,716,914 
544,606,759 
594,717,942 
663,125,660 
601,060,723 
603,589,490 
675,511,715 
701,372,375 
691,140,455 


Total  net 

ordinary 

expenditures 


718 
864 
1,295 
519 
346! 
370 
321 
$293 
283 
270, 
285, 
301, 
274 
265 
241 
236 
266 
264, 
259 
257, 
265, 
244, 
260, 
242, 
267, 
259; 
281, 
297, 
355, 
345, 


570,242 
734,276 
969,101 
099,290 
022,356 
729,326 
339,134 
190,598 
657,005 
160,394 
559,696 
239,325 
238,800 
623,393 
101,085 
334,475 
964,327 
947,884 
847,637 
651,639 
981,440 
408,138 
126,244 
226,935 
483,139 
932,180 
653,959 
996,616 
736,487 
372,685 
023,331 
477,954 
525,280 


356,195,298 
352,179,446 
365,774,160 

443,368,583 
605,072,180 
487,713,792 
509,967,353 
471,190,858 
506,089,022 
532,237,821 
563,360,094 
549,405,425 
551,705,129 
621,102,391 
662,324,445 
659,705,391 
654,137,998 
654,804,625 


Excess  of 
receipts 


927,208 
116,117,354 
6,095,320 
35,997,658 
$102,302,829 
91,270,711 
94,134,534 
36,938,349 


9,397,378 

24,965,500 

39,666,167 

20,482,449 

5,374,253 

68,678,864 

101,130,654 

145,543,810 

132,879,444 

104,393,626 

63,463,771 

93,956,588 

103,471,098 

119,612,116 

105,053,443 

105,344,496 

37,239,762 

9,914,453 

2,341,675 


79,527,060 
77,717,985 
91,287,376 
54,307,653 
7,479,093 


45,312,517 
111,420,531 


15,806,324 
47,234,377 


Excess  of 
expendi- 
tures 


417,650,981 


621,556,121 
973,068,132 


$1,297,799 


69,803,261 

42,805,223 
25,203,246 
18,052,455 

38,047,248- 
89,111,560 


18,753,335 


20,041,668 
58,734,955 


Every  dollar  sent  abroad  to  purchase  poods  that  we  can  produce 
at  home  makes  us  a  dollar  the  poorer.— H.  K.  Thurber,  in  the 
"American  Economist." 

In  spite  of  the  general  comfort,  there  have  been  made  manifest 
by  signs  not  to  be  misunderstood,  a  quickening;  of  the  public 
conscience  and  a  demand  for  the  remedy  of  abuses,  the  out- 
growth of  this  prosperity  and  for  a  higher  standard  of  business 
integrity.  Every  lover  of  his  country  should  have  a  feeling  of 
pride  and  exaltation  in  this  evidence  that  our  society  is  still 
sound  at  the  core. — Hon.  Wm.  H.  Taft,  at  Columbus,  Ohio. 

Government  must  be  honest,  business  dealing  must  be  square 
with  the  principles  of  right  and  justice,  the  things  that  are  pure 
and  clean  and  of  good*  repute  must  be  exalted;  and  underlying  the 
whole  fabric  of  our  institutions  we  must  safeguard  our  schools 
and  keep  pure  and  undefiled,  as  the  very  foundation  of  our  liber- 
ties, the  American  home. — Postmaster-General  Cortelyou  on  Lin- 
coln's Influence  on  American   Life. 


There  is  a  class  of  capitalists  who  look  upon  labor  unions  as 
per  se  vicious,  and  a  class  of  radical  labor  unionists  who  look  upon 
capital  as  labor's  natural  enemy.  I  believe,  however,  that  the 
great  majority  of  each  class  are  gradually  becoming  more  con- 
ciliatory in  their  attitude,  the  one  toward  the  other.  Between 
them  is  a  larger  class,  neither  capital  nor  labor  unionist,  who  are 
w  it  lion*  prejudices,  and  I  hope  I  am  one  of  those.—- Hon.  Wm.  11. 
Taft,  at   Cooper  Union,  New   York   City. 


STATISTICAL  STATEMENTS. 


339 


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Conceding  that  any  of  these  Ideas  may  find  application 
in  local  conditions,  how  will  these  advocates  apply  their 
ideas  to  the  activities  of  the  National  Government?  *  *  * 
Is  it  possible  that,  not  content  with  the  present  agitation, 
opportunity  for  turmoil,  indecision,  and  unrest  shall  be 
multiplied?  Is  it  possible  that  they  contemplate  the  re- 
call of  Federal  officials?  Is  it  to  be  applied  to  Congress- 
men in  their  respective  districts?  Is  it  to  be  applied  to 
Senators,  and  is  it  to  be  applied  to  President? — Secretary 
Nagel    at    Indianapolis. 


840 


STATISTICAL  STATEMENTS. 


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343 


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344 


STATISTICAL  STATEMENTS. 


Financial,  commercial,  and  industrial  conditions  in  the   United 
States,  1892,  1896,  and  1911. 


ITEMS 


Population    

Interest-bearing  debt  dolls- 
Annual  interest  charge dolls.. 

Annual  interest  per  capita cts_. 

Receipts  from  customs dolls.. 

Treasury  receipts,  ordinary— dolls.. 

Gov't  disbursements  (a) dolls.. 

Gold  in  Treasury  dolls.. 

Gold  and  gold  certificates  in 

circulation   dolls.. 

Money  in  circulation dolls.. 

Money     in     circulation,     per 

capita  dolls.. 

Bank  clearings,  New  York— dolls.. 
Bank  clear'ns,  total,  U.  S._ -dolls.. 
Loans     and    discounts,    nat'l 

banks   dolls— 

Havmgs  hank  depositors  (c)  No— 
Savings  bank  deposits  (d).. dolls.. 

Bank  deposits,    total doils.. 

ii      « trial    life    insurance    in 

force  dolls— 

Total     Mfe     insurance     in 

force   dolls.. 

Imports  dolls- 
Imports,  per  capita  (e) dolls.. 

Exports  dolls.- 

Exports,  per  capita  (f) .dolls.. 

Excess    of   exports    over   im- 
ports   dolls- 
Imports  of  mfr  s  materials— dolls. . 

Exports  of  manufactures dolls.. 

Share     mfr's     form     of     ex- 
ports   per  cent- 
Exports   of  meat   and   dairy 

products  dolls- 
Exports    to    Asia    and    Ocean- 
ia     dolls- 
Exports  to  Porto  Rico dolls.. 

Exports  to  Hawaii dolls.. 

Exports   to  Philippine  Isles-dolls.. 
Animals     on     farms,      total 
value dolls- 
Horses   dolls— 

Cattle  dolls.. 

Mules dolls- 
Swine  dolls.. 

Sheep    1 dolls- 
Sheep,  total  in  U.  S. — No— 

Sheep,   av.  val.  per  head dolls— 

Farm  products,  value- 
Corn  dolls- 
Wheat   dolls- 
Oats  dolls- 
Hay  dolls.. 

Potatoes dolls.. 

Wool    production    lbs„ 

Wool  dolls- 
Cotton     production,      500-lb. 

bales   

Beet-sugar  production  tons- 
Mineral  production dolls.. 

Coal   production   tons— 

Pig-iron  production tons— 

Steel  rails  mfd  tons— 

Steel  manufactured tons.. 

Exports  of  iron  and  steel. -dolls.  _ 

Tin  plates  manufactured lbs_. 

Tin  plates  imported  lbs__ 

Pig  tin  imported lbs__ 

Domestic     cotton     used      in 

mfg  bales- 
Silk  imported  for  mfg lbs.. 

Hides  and  skins  imported dolls.. 

Rubber  imported  for  mfg lbs__ 

P.  O.  Dept.,  receipts  of dolls.. 

Telegraph  messages  sent  (k).No... 

Telephone  subscribers  (I) No.. 

Patents  issued No_. 

Failures No._ 

Failures,   liabilities  .dolls.. 

Original  homestead  en  tries.,  acres.  _ 

Railways  in  operation miles— 

Rn'lways,   operating  revenues 
(m) dolls— 


65,083,000 
585,029,330 

22,893,8«3 
35 
177,452,981 
351,937,781 
315,023,331 
114,612,892 

519,662,443 
1,601,347,187 

24.60 
36,279,905,236 
00,883,572,428 

2,127,757,191 

4,781,605 

1,758,329,618 

4,664,934,251 

583,533,745 

4,897,738,088 

827,402,462 

12.36 

1,030,278,148 

15.61 

202,875,686 
188,317,595 
183,076,682 

18.02 

141,240,834 

35,163,117 

2,856,003 

3,781,628 

60,914 

2,461,755,698 
1,007,593,636 
922,127,287 
174,882.070 
241,031,415 
116,121,290 
44,938,365 
2.60 

642,146,630 
322,111,881 
209,253,611 
490,427,798 
103,567,520 
294,000,000 
79,075,777 

6,658,313 

5,356 

622,542,381 

160,115,212 

9,157,000 

1,298,936 

4,927,581 

28,800,930 

42,119,192 

422,176,202 

43,908,652 

2,856,000 

8,831,049 

26,850.218 

39,976,205 

70,930,475 

62,387,298 

216,017 

23,559 

10,314 

114,044,167 

16,808,791 

175,691 

1,171,407,313 


70,251,005 
8 17, 303,;- 90 

34,387,236 
49 
160,021,752 
323,976,200 
352,179,446 
102,491,781 

497,103,183 
1,506,431,966 

21.44 
29,350,891,881 
51,935,651,733 

1,971,612,012 

5,065.494 

1,935,466,468 

4,945,121,424 

888,267,912 

5,942,068,818 
779,724,674 

10.81 
882,606,938 

12.29 

102,882,264 
197,646,852 

258,004,885 


133,377,519 

42,827,258 

2,102,094 

3,985,707 

162,446 

1,727,926,081 
500,140,185 
872,883,961 
103, -201, 457 
186,5  9,745 
65,167,735 
38,298,783 
1.70 

491,006,967 
310,602,539 
132,  85,033 
388,1(5,614 

72,182.350 
272,474,708 

32,529,536 

8,515,640 

29,220 

640,544,221 

171,116,390 

8, 623, 129 

1,300.325 

5,281,689 

41,160,877 

359,2^9,798 

385,138,985 

49,952,957 

2,505.000 

9,363,987 

30.520,177 

36,774,460 

82,199,208 

58,760,444 

281.695 

23,273 

15,088 

226,096.834 

4,830,915 

186,681 

1,073,361,797 


93,792.509 

915,353,190 

21,3i6,673 

a 

314,497,071 

701,372,375 

654,137,994 

f     233,533,255 

bl, 519, 663. 467 
b3, 214, 002, 593 

b3t.50 

92,420,120.093 

159,373,450,0.0 

5,610.838,787 

9,794.647 

4,212,583,593 

15,906,274,710 

3,177,047,874 

16, 4^.  261 ,012 

1,5.7,226,  05 

16.05 

2,049,320,199 

'  21.15 

522,091.094 
511,362,140 
907,519,841 

45.07 

149,389,737 

151,483.241 

g31,671,9"8 

h21, 925,^77 

19,723,113 

5,276,438.000 

2,259,931  r00 

1,647,393  000 

544,359,000 

6*5, 170, PC0 

209, 53  5,  00 

53,633,000 

3.91 

1,565,258,000 
543,063,000 
414,663,000 
694,570  000 
233,778,000 
318,547,901 
66,591,017 

112,0^5.688 

455,511 

J2,003,744,8f9 

j 447, 853. 909 

23,619.517 

3,635  801 

126,094,919 

230.725,352 

11,619,005.000 

95,319.730 

103,439,058 

4, 705,000 

26,666,091 

70.504.9HO 

72,0-16.260 

237,  B! 

77.780,732 

13,5S8,247 

34.084 

13,441 

191,061,665 

17,639,100 

1249,992 

12,750,667,435 


STATISTICAL  STATEMENTS.  345 

Financial,  commcrical,  and  industrial  conditions  in  the   United 
States,  1892,  1896  and  1911— Continued. 


ITEMS 


1892 


1896 


1911 


Railways,  dividends  paid dolls.. 

Railways,  employees  No.— 

Railways,  wge.  and  sal.  pd.dolls.. 

Railways,  freight  carried tons.. 

Railway  passengers  carried  — No— 
Railways,      freight     receipts, 

ton  per  mile cents.. 

Railways     sold     under     fore- 
closure   miles- 
Freight     passing     Sault     Ste 
Marie  canals tons— 

WHOLESALE    PRICES    (ANNUAL 
AVERAGE) 

Wheat per  bush— 

0*rn per  bush- 
Oats  per  bush- 
Flour,  patent barrel- 
Hogs,  heavy 100  lbs— 

Bacon,   short  clear  sides—pound— 

Steers.,  choice  to  extra 100  lbs__ 

Reef,  fresh  native  sides pound- 
Coffee,  Rio  No.  7 pound- 
Sugar,   granulated   pounds.. 

Tea,  Formosa,  fine pound- 
Men's  shoes,  vici  kid pair- 
Men's  shoes,  brogan  pair- 
Serge  suitings,   .yard 

Women's  dress   goods,    cash- 
mere     yard- 
Woo],     Ohio,     X    and     XX, 

scoured pound 

Coal,  anthracite,  stove ton- 
Coal,  bituminous,  at  mine.— ton- 
Petroleum,    refined   gallon.. 

Pig  iron,  foundry  No.  1 ton- 
Wire  nails 100  lbs_. 

Cut  nails ...100  lbs— 

Tin  plates  (n) 100  lbs.. 

Steel  rails ton.. 

Steel  billets -ton.. 

Rope,  manila,  %  inch pound— 


97,614,745 
821,415 
477,181,451 
700,744,184 
560,958,211 


10,647,203 


Dollars 

0.7876 

.4500 

.3042 

4.3466 

5.15.50 

.0787 

5.0909 

.0762 

.1430 

0.7876 

.3008 

2.5000 

1.0375 

.9100 

.3724 

.6119 

4.1532 

.9000 

.0794 

15.7492 

2.1896 

1.7583 

5.3050 

30,0000 

23.6308 

.1148 


87,603,371 
836,620 
468,82  4,531 
753,716,562 
511,772,737 

.806 

13,730 

17,249,418 


Dollars 

0.6413 
.2580 
.1801 

3.7957 

3.3579 
.0194 

4.5957 
.0698 
.1233 
.0-4532 
.2583 

2.2500 
.9938 
.6143 

.1960 

.3940 

3.7942 

.9000 

.1039 

12.9550 

2.9250 

2.7125 

3.4354 

28.0000 

18.8333 

.0664 


1405,771,416 

il, 699, 420 

11,143,725,306 

il,  849, 900 ,101 

1971, 683, 1SW 

i.753 

.1386 

41,653,488 

Dollars 

1.0973 

.5810 

.3856 

5.  4952 

8.9428 

.1332 

7.7712 

.1027 

.0952 

.04959 

.2400 

2.6000 

1.1375 

1.2656 

.3675 


4.8178 

1.4033 

.1079 

17.3617 

1.8875 

1.8438 

3.8<00 

28,0000 

25.3:00 

.0879 


a  "Ordinary  expenses"  include  expenditures  for  War,  Navy,  Indians,  pen- 
sions, payments  for  interest,  and  "Miscellaneous,"  but  do  not  Include  pay- 
ments for  premiums,  principal  of  public  debt,  or  expenditures  for  postal  ser- 
vice paid  from  revenues  thereof. 

b  As  the  result  of  special  investigation  by  the  Director  of  the  Mint  a  reduc- 
tion of  $135,000,000  was  made  in  the  estimate  of  gold  coin  in  circulation  on  July 
1,  1907,  as  compared  with  the  basis  of  previous  years;  and  on  September  1, 
1910,  a  reduction  of  $9,700,000  was  made  in  the  estimate  of  silver  coin. 

c  Prior  to  1911  includes  depositors  in  Illinois  State  banks  having  savings 
departments,  for  number  of  which  see  report  of  the  Comptroller  of  the  cur- 
rency. 

d  Prior  to  1911.  exclusive  of  Illinois  State  banks  having  savings  departments. 

e  Based  on  imports  for  consumption  only. 

f  Based  on  domestic  exports  only.  v 

g  Shipments  to  Porto  Rico. 

h  Shipments  to  Hawaii. 

i  1910 

j  1909. 

k  Western  Union  only. 

1  Includes  statistics  of  American  Telephone  and  Telegraph  Company  and 
operating  companies  associated  with  't. 

m  Prior  to  1911,  "Gross  earnings  from  operation.' 

n  1892  figures  are  for  imported  tin;  those  of  subsequent  years,  of  domestic 
manufacture. 


I  have  always  wondered  why  the  Idea  of  recall  of  judses 
was  not  carried  oat  to  its  logical  consequences.  If  -we,  the 
people,  are  to  have  th.e  right  to  protect  ourselves  in  this 
fashion  against  erring  judges,  why  would  it  not  he  more 
safe  to  compel  a  court,  before  it  renders  its  decision,  to 
announce  to  the  people  what  it  is  ahout  to  do,  in  order 
that  opportunity  may  he  given  to  recall  the  judges  he- 
fore  the  mischief  is  done?  That  would  he  consistent  with 
the  main  idea,  and  -would  ultimately  dispense  with  the 
necessity   for   having   any  courts   at   all.— Hon.    Charles    \agel. 


It  Is  better  for  this  country  to  feed,  clothe  and  house  our  own 
labor  In  this  country  than  to  support  foreign  labor  in  other 
countries    with   our   money. — H.   K.   Thurber. 


346 


STATISTICAL  STATEMENTS. 

The  Electoral  College  in  1912. 


States. 


Alabama 

Arizona  

Arkansas    

California   — 

Colorado 

Connecticut  __. 

Delaware 

Florida    _ 

Georgia  

Idaho   

Illinois  

Indiana  

Iowa   

Kansas 

Kentucky    

Louisiana  

Maine   

Maryland  

Massachusetts 

Michigan 

Minnesota    

Mississippi  

Missouri    

Montana 

Nebraska    

Nevada    


1912 


States. 


1912 


New  Hampshire  _ 4 

New  Jersey  ___ 14 

New  Mexico ■* 

New  York 45 

North  Carolina 12 

North  Dakota  5 

Ohio    24 

Oklahoma    10 

Oregon 6 

Pennsylvania  >, . 38 

Rhode  Island  5 

I  South  Carolina 9 

South  Dakota  5 

i  Tennessee  12 

l  Texas  1:0 

J  Utah  4 

Vermont  4 

Virginia  12 

I  Washington    _ 7 

West  Virginia 8 

Wisconsin    . 13 

Wyoming  3 


Total- 532 


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STATISTICAL  STATEMENTS. 


347 


Party  divisions  in   Congress  since  the  formation  of  the  Republi- 
can Party  in   1866.   . 


Congress. 

Years. 

Senate. 

House. 

• 
Dem. 

Rep. 

Ind. 

Dem. 

Rep. 

Ind. 

35                         

1857-1859 
1859-1861 
al861-1863 
al863-1865 
1865-1867 
1867-1S69 
1869-1871 
1871-1873 
1873-1875 
1875-1877 
1877-1879 
1879-1881 
1881-1883 
1883-1885 
1885-1887 
1887-1889 
1889-1891 
1891-1893 
1893-1895 
1895-1897 
1897-1899 
1899-1901 
1901-1903 
1903-1905 
1905-1907 
1907-1909 
1909-1911 
1911-1913 

39 
38 
10 
9 
11 
11 
11 
17 
20 
29 
39 
44 
38 
36 
34 
37 
37 
39 
44 
39 
34 
26 
29 
32 
32 
29 
32 
42 

20 
26 
31 
36 
41 
42 
58 
57 
47 
43 
36 
32 
37 
e40 
42 
39 
39 
47 
38 
42 
46 
53 
56 
58 
58 
61 
59 
49 

5 
2 
2 
5 

----- 

b2 

bl 

------ 

_      .... 

f3 
f5 
hlO 
111 
n3 

""pi" 
Pi 

131 

101 

42 

75 

40 

49 

78 

103 

02 

168 

151 

148 

138 

198 

204 

168 

159 

236 

220 

104 

il34 

163 

153 

174 

136 

164 

175 

229 

92 
113 
106 
102 
145 
143 
151 
188 
194 
107 
142 
129 
146 
124 
120 
153 
166 

S3 
126 
246 
206 
185 
198 
206 
250 
222 
215 
162 

14 

36  .  .     __     

23 

37 

38 

39 .         

28 
9 

40 

41 

42 

""bf> 

43  __                   

14 

44  . 

45 

46 

47                                   

C16 
CIO 

48_  .                            

cl 

4!)    _       

cl 

50 

4 

61.  _     

18 

53.         

18 

54 

17 

J16 

56 

ky 

57 

58 

59 

m5 
o2 

60 

61 

Pi 

02 

Q2 

Parties  as  constituted  at  the  beginning  of  each  Congress  are  given.     These 
figures  were  liable  to  change  by  contests  for  seats,  etc. 

a  During  the  Civil  War  most  of  the  Southern  States  were  unrepresented  in 
Congress. 

i.»  Liberal  Republicans,  c  Greenb ackers,  d  David  Davis,  Independent,  of 
Illinois. 

e  Two  Virginia  Senators  were  Readjusters,  and  voted  with  the  Republicans. 

f  People's  party,  except  that  in  the  House  of  Representatives  of  the  Fifty- 
fourth  Congress  one  member  is  classed  as  Silver  party. 

g  Three  Senate  seats  were, vacant  (and  continued  so)  and  two  Representative 
seats  were  unfilled  (Rhode  Island  had  not  yet  effected  a  choice)  when  the  session 
began.     Rhode  Island  subsequently  elected  two  Republicans. 

h  Five  Populists,  two  Silver  party,  three  Independents,  i  Including  fifteen 
members  classed  as  Fusionists.  j  Including  three  members  classed  as  Silver 
party.     There  was  one  vacancy. 

k  Six  Populists,  three  Silver  party. 

1  Five  Populists,  one  Silver  party,  two  Independents,  and  three  vacancies, 
m  Three  Populists,  one  Silver  party,  one  Fusion  party,  one  vacancy. 

n  One  Populist,  one  Silver  party,  one  Fusionist,  two  vacancies. 

o  Two  Union  Labor  and  two  vacancies — one  Democratic,  one  Republican. 

p  Vacancy,    q  One  Socialist,  one  Progressive  Republican. 


A  nation  like  that  of  the  United  States,  with  eighty  millions 
of  people,  with  resources  unexampled  4n  the  history  of  the  world, 
with  ideals  as  high  as  those  of  any  nation,  with  the  earnest  desire 
to  spread  the  principles  of  liberty  and  of  popular  government, 
cannot  maintain  a  position  of  isolation  with  respect  to  the  peoples 
of  the  world  when  fate  shall  have  thrust  some  of  those  peoples 
under    our    control. — Hon.    Wm.    H.    Taft,    at    Cleveland,    Ohio. 

The  Republican  party  was  dedicated  to  freedom  forty-four  years 
ago.  It  has  been  the  party  of  liberty  and  emancipation  from 
that  hour;  not  of  profession  but  of  performance. — President  Mc- 
Kinley,    at    Canton,   July   12,   1900. 


I  think  it  never  could  have  entered  the  minds  of  the  men  who 
framed  the  constitution  that  there  could  be  found  in  all  time  men 
who  would  favor  the  recall  of  the  judiciary.  To  me  the  proposition 
is  unthinkable.  No  self-respecting  man  would  accept  judicial  office 
under  such  conditions.  The  recall  of  judges  is  only  equalled  by 
that  twin  devil,  the  recall  of  judicial  decisions.  I'm  a  firm  be- 
liever in  the  people,  in  the  sober  second  thought  of  the  people, 
but  I  have  seen  the  people,  -when  appealed  to  by  some  gifted  and 
attractive  demagogue,  go  wild.  I've  seen  them  vote  for  measures 
which  a  few  years  later  they  wanted  wiped  from  the  statute  books. 
No  American  citizen  has  a  right  to  tolerate  doctrines  so  wild  and 
revolutionary.  It  is  no  more  a  question  of  politics  than  the  pres- 
ervation of  the  Union  was  a  question  of  politics. — Hon.  John  C. 
Spooner. 


348 


STATISTICS  L  STATEMENTS. 


Presidential  vote  an 

i  political  record  by  mates, 

1864  to  1908. 

Party 

recei><ng  electoral  vote  in— 

Votes,  1908. 

'64 

'68 

72 

;?6 

'80 

'84 

'88 

'92 

'96 

1900 

'04 

'08 

Alabama    

11 

* 

R 

R 

D 

D 

D 

D 

D 

D 

T> 

D 

D 

Arkansas    

9 

# 

R 

* 

D 

D 

D 

D 

D 

D 

D 

D 

D 

California   

10 

R 

R 

R 

R 

tD 

R 

R 

tD 

tR 

R 

R 

R 

Colorado    

—  5 

* 

* 

• 

R 

R 

R 

R 

P 

D 

D 

R 

D 

Connecticut    

„_  7 

R 

R 

R 

D 

R 

D 

D 

D 

R 

R 

R 

R 

I>elaware    

3 

D 

D 

R 

D 

D 

D 

D 

D 

R 

R 

R 

R 

Florida   

...  5 

* 

R 

R 

R 

D 

D 

D 

D 

D 

D 

D 

D 

Georgia  

...13 

* 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

Idaho  

...  3 

* 

* 

* 

# 

* 

* 

• 

P 

P 

D 

R 

R 

Illinois 

27 

R 

R 

R 

R 

R 

R 

R 

D 

R 

R 

K 

R 

Indiana  

_._15 

R 

R 

R 

D 

R 

D 

R 

D 

R 

R 

R 

R 

Iowa  

—13 

R 
R 
D 

R 
R 
D 

R 
R 

D 

R 
R 
D 

R 
R 

D 

R 
R 

D 

R 
R 

D 

R 
P 
D 

R 
D 

tR 

R 
R 
D 

R 
R 
D 

R 

Kansas    _    

—10 

R 

Kentucky    

13 

D 

Louisiana 

9 

» 

D 

* 

R 

D 

D 

D 

D 

D 

D 

D 

D 

Maine  

—  6 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

Maryland 

8 

R 

D 

D 

D 

D 

D 

D 

D 

R 

tR 

tD 

«D 

Massachusetts  __ 

—16 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

Michigan    

—14 

R 

R 

R 

R 

R 

R 

R 

IR 

R 

R 

R 

R 

Minnesota   

—11 

R 

R 

R 

R 

R 

It 

R 

R 

R 

R 

R 

R 

Mississippi  

—10 

* 

* 

R 

D 

D 

D 

D 

D 

D 

D 

D 

D 

Missouri    

—18 

R 

R 

D 

D 

D 

D 

D 

D 

D 

P 

R 

D 

Montana 

3 

* 

* 

* 

* 

* 

* 

* 

R 

D 

D 

R 

R 

Nebraska    

...  8 

♦ 

R, 

B 

R 

R 

R 

R 

R 

D 

R 

R 

T> 

Nevada    

—  3 

R 

R 

R 

R 

D 

R 

R 

P 

D 

D 

R 

T> 

New  Hampshire 

—  4 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

New  Jersey 

—12 

D 

D 

R 

D 

D 

D 

D 

D 

R 

R 

R 

R 

New  York   

39 

R 

D 

R 

D 

R 

D 

R 

D 

R 

R 

R 

R 

North   Carolina 

—12 

* 

R 

R 

D 

D 

D 

D 

D 

D 

D 

D 

D 

North  Dakota   _ 

—  4 

* 

* 

# 

* 

* 

* 

* 

tD 

R 

R 

R 

R 

Ohio    

23 

R 

R 

R 

R 

n 

R 

R 

tR 

R 

R 

R 

R 

Oklahoma    

—  7 

* 

]  ♦ 

* 

* 

* 

* 

* 

* 

• 

• 

D 

Oregon  

—  4 
—34 

R 
R 

D 
R 

R 
R 

R 
R 

R 
R 

R 
R 

R 
R 

tR 

R 
R 

R 
R 

R 
R 

R 

Pennsylvania  __. 

R 

R 

Rhode  Island  _„ 

4 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

South   Carolina 

9 

* 

R 

R 

R 

D 

D 

D 

D 

D 

D 

D 

D 

South  Dakota  — 

—  4 

* 

» 

* 

* 

* 

* 

* 

R 

D 

R 

R 

R 

Tennessee  

—12 

# 

R 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

Texas  

—18 

• 

* 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

Utah 

3 

• 

* 

* 

# 

* 

* 

* 

* 

D 

R 

R 

R 

Vermont  

—  4 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

Virginia    

12 

» 

* 

R 

D 

D 

D 

D 

D 

D 

D 

D 

D 

Washington    

—  5 

# 

* 

* 

* 

• 

• 

• 

R 

D 

R 

R 

R 

West  Virginia  __ 

...  7 

R 

R 

R 

D 

D 

D 

D 

D 

R 

R 

R 

R 

Wisconsin 

13 

R 

R 

R 

R 

R 

R 

R 

D 

R 

R 

R 

R 

Wyoming  

3 

* 

* 

• 

» 

• 

* 

* 

R 

D 

R 

R 

R 

*No  vote. 

t  One  electoral  vote  given  to  opposing  party. 
tPive  electoral  votes  given  to  opposing  party, 
a  Two  votes  given  to  opposing  party. 


The  United  States  is  a  continental  nation  and  should  adopt  a 
continental  policy.  Free  trade  is  adapted  only  to  insular  nations, 
and  no  continental  nation  has  adopted  a  free-trade  policy.— Ex- 
President  Hill,  of  the  University  of  Rochester,  now  ambassador  to 
Germany. 

If  by  asserting  complete  Federal  control  over  the  interstate 
railways  of  the  country  we  can  suppress  secret  rebates  and  dis- 
criminations of  other  kinds,  we  shall  have  gone  a  long  'way  in 
the  suppression  of  the  unlawful  trusts. — Hon.  Win.  H.  Tuft,  at 
Columbus,    Ohio. 

The  millions  we  formerly  sent  to  aliens  in  alien  lands  to  pay 
them  for  making  tin  plate  for  us  we  now  pay  to  our  own  country- 
men in  the  United  States;  we  have  the  tin  plate  and  we  have  the 
money  expended  for  tin  plate  besides.— Hon.  Win.  S.  Greene,  in 
Congress,  April  28,  1904. 

The  highest  claim  of  William  McKlnley  for  the  gratitude  of  his 
countrymen  is  that,  in  spite  of  the  abuse  and  contumely  that  was 
heaped  upon  his  head  for  this  policy,  he  placed  our  country  in  the 
forefront  of  nations  as  a  civilizer  and  upllfter  of  unfortunate 
peoples. — Hon.  Win.   H.   Taft,   at   Cleveland,    Ohio. 


Our  appeal  is  not  to  a  false  philosophy  or  vain  theories,  but 
to  the  masses  of  the  American  people,  the  plain,  practical  people 
whom  Lincoln  loved  and  trusted  and  whom  the  Republican  Party 
has  always  faithfully  striven  to  serve.— Maj.  McKinley  to  Notifi- 
cation  Committee,  1896. 


STATISTICAL  STATEMENTS. 


349 


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350 


STATISTICAL  STATEMENTS. 


Receipts  and  expenditures  in  the  United  States. 


Fiscal  years 

Ordinary 
receipts 

Ordinary 
disbursements 

Excess 
receipts 

Excess  of 
disburse- 
ments 

1800 

$10,848,749 
9,384,214 
17,840,670 
24,844,117 
19,480,115 
43,592,889 
52,555,039 
49,846,816 
61,587,032 
73,800,341 
65,350,575 
74,056,699 
68,965,313 
46,655,366 
52,777,108 
56,054,600 
41,476,299 
51,919,261 
112,094,946 
243,412,971 
322,031,158 
519,949,564 
462,846,680 
376,434,545 
357,188,256 
395,959,834 
374,431,105 
364,694,230 
322,177,674 
299,941,091 
284,020,771 
290,066,585 
281,000,642 
257,446,776 
272,322,137 
338,526,501 
360,782,293 
403,525,250 
398,287,582 
348,519,870 
323,690,706 
336,439,727 
371,403,278 
379,266,075 
387,050,059 
403,080,983 
392,612,447 
354,937,784 
385,819,629 
297,722,019 
313,390,075 
326,976,200 
347,721,705 
405,321,335 
515,960,620 
567,240,852 
587,685,338 
562,478,233 
560,396,675 
539,716,914 
544,606,759 
594,717,942 
663,125,660 
601,060,723 
603,589,490 
675,511,715 
701,372,375 

$10,813,971 
8,474,753 
18,285,535 
15,142,108 
24,314,518 
40,948,383 
47,751,478 
44,390,2-52 
47,743,989 
55,038,455 
58,630,663 
68,726,350 
67,634,409 
73,982,493 
68,993,600 
63,200,876 
66,650,213 
469,570,242 
718,734,276 
864,969,101 
1,295,099,290 
519,022,?"^ 
346,729,3.. 
370,339,134 
321,190,508 
293,657,005 
283,160,394 
270,559,696 
285,239,325 
301,238,800 
274,623,393 
265,101,085 
241,334,475 
236,964,327 
266,947,884 
264,847,637 
259,651,639 
257,981,440 
265,408,138 
244,126,244 
260,226,935 
242,483,139 
267,932,180 
250,653,959 
281,996,616 
297,736,487 
355,372,685 
345,023,331 
383,477,954 
367,525,280 
356,195,298. 
352,179,446 
365,774,160 
443,368,583 
605,072,180 
487,713,792 
509,967,353 
471,190,858 
506,089,022 
532,237,821 
563,360,094 
563,360,094 
551,705,129 
621,102,391 
662,324,445 
659,705,391 
654,137,998 

$34,778 
909,461 

1810 

1820 

$444,865 

1830 

9,702,009 

1840 

4,834,403 

1850 

2,644,506 
4,803,531 
5,456,564 
13,843,043 
18,761,886 
6,719,912 
5,330,349 
1,330,904 

1851 

1852 

1853 

1854. 

1855 

1856 

1857 

1858 

27, 327, 127 

1859 __ 



16,216,492 

1860 

7,146,276 

18<>1 . 

25,173,914 

1862 

417,650,981 

1863. _. 

606,639,330 

1864 

621,556,130 

1883 

927~208~~ 

116,117.354 

6.095,320 

35,997,658 

102,302,829 

91,270,711 

94,134,534 

36,938,349 

973,068,132 

1816 

1867 

1868 

1869 

1870. -_ 

1871___ 

1872 

1873 

1,297,709 

1875 

9,397,378 

24.965,500 

39,666,167 

20,482,449 

5,374,253 

68,678,864 

101,130,654 

145,543,810 

132,879,444 

104,393,626 

63,463,776 

93,956,588 

103,471,098 

119,612,116 

105,053,443 

105,344,496 

37,239,762 

9,914,453 

2,341,675 

1876_  _ 

1877_    

1878 

1879 



1880 

18S1 

1882 

1883 

1884 , 

1885 

1886___ 

1887 

1888    

1889 

1890_ 

1891 

1892 

S-: — - 

69,803,261 

42,805,223 

1896— 

2  5. 203.2W 

1897 

18,052,455 

1898 

38,047,248 

1899 

89,111,560 

1900 

1901 

79,597,060 
77,717,985 
91,287,375 
54,307,653 
7,479,093 

89,111,560 

1902 

1903 

1904 



1905 

18,753,335 

1906_ 

45,312,517 
11,420,531 

1907 . 

1908 

1909 

58,734,955 

1910 

15,806,324 
47,234,377 

1911 

Note.—  Ordinary  receipts  include  receipts  from  customs,  internal  revenue, 
direct  tax,  public  lands,  and  "miscellaneous,"  but  do  not  include  receipts  from 
loans,  premiums,  or  treasury  notes,  or  revenues  of  Post  Office  Department. 
Ordinary  disbursements  include  disbursements  for  War,  Navy,  Indians,  pen- 
sions, payment  for  interest,  and  "miscellaneous,"  but  do  not  include  premiums, 
principal  or  public  debt,  or  disbursements  for  postal  service  paid  from  rev- 
enues  thereof. 


The  advocacy  of  snch  a  system  (the  recall)  supriucests 
chaos  in  decisions,  irresponsibility  in  the  conrts,  and, 
worse  than  all,  the  power  of  an  impatient  majority  to 
deny  every  rigrht  which  well-ordered  institutions  guaran- 
tee   to    the    minority.— Hon.    Charles    Nagel. 


STATISTICAL  STATEMENTS. 


351 


Table  of  Annual  Averages  of  National  Financial  and  Industrial 
Coniitions  during  the  administrations  of  Presidents  Cleve- 
land, McKinley,  Roosevelt,  and  Taft. 

[Annual  average  for  periods  named.] 
[Compiled  mainly  from  the  Statistical  Abstract  of  the  United  States.] 


1893-1896.  1897-1900.  1901-1903.  1904-1907.  1908-1911. 


Interest-bearing     debt,     million 

dollars     

Annual  interest  per  capita 

Treasury  receipts,  net  ordinary 

millions     '. 

Government    disbursements,    or- 
dinary,   millions    

Money  in  circulation,  millions 
Money  in  circulation,   per  capita 
Bank   clearings,    total,    millions 
Bank   deposits,    total,    millions. 
Bank     deposits,     savings,     mil 

lions   # 

Depositors    in     savings     banks, 

millions..    

Industrial      life      insurance      in 

force,    millions   

Life  insurance,   total,   in  force, 

millions  _. 

Imports,    total,    millions 

Exports,    total,   millions 

Excess  of  exports  over  imports, 

millions     

Exports   of   manufactures,    mil- 
lions      

Imports    of    raw    materials    for 

manufacturing,    millions   

Exports   to   Asia    and    Oceania, 

millions     

Pig  tin  imports,  lbs.,   millions. 
Tin  plate  imports,  lbs.,  millions 

Coal,   tons,  millions 

Pig  iron,    tons,    millions 

Steel  rails,   tons,   millions 

Steel,   total  tons,   millions 

Tin    plate,    manufactured    lbs., 

millions     ___ 

Minerals,   total  value,    millions. 
Cotton,    total  value,    millions.. 

Beet  sugar,   1,000  tons 

Wool,    lbs.,    millions 

Raw    silk,    imports,    lbs.,    mil- 
lions      

Cotton  used  in  manufacturing, 

bales,    millions 

Animals  on  farms,   total  value, 

millions 

Sheep    on    farms,    total    value, 

millions    

Railways,     operating     revenues, 

millions     

Dividends     paid     by     railways, 

millions     

Passengers   carried,    millions 

Freight    carried    1    mile,    billion 

tons    

Railways  placed  under  receiver- 
ship,   miles   

Railways     sold     under     foreclo- 
sure,  miles   

Railways,     increase    in    mileage 

operated     

Average  receipts  per  ton  mile... 

Tonnage     of      vessels      passing 

through     Sault     Ste.       Marie 

Canal,   millions   I 

Failures,   liabilities   of,    millions 

Post  office  receipts,  millions J 

Wheat,    average    price    of,    perj 

bushel    _ ' 

Corn,    per   bushel | 

Oats,    per   bushel 

Homestead     (c)      original      en-| 
tries,    1,000    acres : j 


$0.41 
331 

365 

1,592 
$23,29 
51,700 

4,757 

1,813 

4. 

793 

5,635 
758 
856 


211 

179 

34 

42 

494 

165 


1.27 
4.96 

226 
575 
263 
20 
271 

8.02 

2.51 

2,050 

87 

33 


83 
558 


11,474 
7,951 


1,900 

$0.85 


14 
230 

77 

3.70 
44.4 
31.3 

,174 


941 

$0.48 

459 

475 

1,859 

$25.13 

73,300 

6,223 


5. 

1,217 

7,394 

732 

1,251 

519 

275 

218 

79 

63 

164 

210 

12. 

1. 

9. 

698 
731 
300 
46 
272 

11. 

3. 

1,942 

97 

416 


107 
535 


100 
1,697 
5,125 


2,891 
$0.76 


20 

128 


87.6 
39.0 
27.5 


6,329 


944 
$0.35 

570 

496 

2,264 

$28.61 

114,900 

9,139 

2,760 

6.8 

1,723 

10,051 

917 

1,430 

513 

462 

294 

93 

80 
142 
270 

17.27 
2.73 

14.21 

857 
1,319 
334 
146 
302 

13.30 

3.85 

3,034 

161 

540 

168 
650 

155 

193 

795 

4,439 

$0.75 


$0.28 


574 

2,654 

$31.60 

138,823 

11,667 

3,374 

7. 

2,299 

13,206 
1,192 
1,651 

459 

640 

400 

182 

88 

138 

338 

22. 

3. 

20. 

1,141 

1,629 
593 
286 
296 

18. 

4. 

3,526 

180 

705 


128 
122 

83.1 
45.5 
40.8 


227 

760 

202 

1,214 

395 

5,100 

$0.78 


141 

162 

99.1 
59.7 
41.1 

12,949 


910 
$0.23 

645 

649 
3,115 

$34.54 
153,369 
14,521 

3,869 


a2,938 

al5,468 
1,398 
1,830 

432 

774 
473 

131 
93 

127 
a410 
23.17 
a2.86 

a21.36 

al,398 
al,828 

a699 

a417 


4.82 

C4.765 

c207 

a2,521 

a356 
a918 

a233 

3,052 

1,313 

a4,337 


42 
192 
214 


.733 
.505 


15,464 


a  Excess    exports. 

b  For  years  1908-10,   inclusive. 

c  The  value  taken  for  1910  consists  of  the  number  as  given  by  census  of 
1910  multiplied  by  value  per  head  as  given  by  Department  of  Agriculture  for 
January  1,  1910. 


THE  DEPARTMENTS. 


Work   During   President   Taft's    Administration. 


DEPARTMENT    OF    STATE. 
President  Taft  In  Foreign  Affairs. 

To  keep  our  factories  running  we  must  have  markets  for 
our  surplus  goods.  To  gain  and  keep  the  advantages  required 
by  our  welfare  among  nations  we  are  largely  dependent  upon 
a  sagacious  and  never-sleeping  diplomacy.  Mr.  Taft  realized 
this  fact  perhaps  more  fully  than  many  of  his  predecessors, 
and  grappled  with  the  problem  wisely  and  consistently.  John 
Hay  had  declared  for  "the  open  door  or  equality  of  commercial 
opportunity  in  China."  Other  administrations  had  stirred  the 
imagination  with  the  ideals  of  Pan-Americanism.  We  had 
tried  to  make  a  lot  of  commercial  agreements.  We  had  strug- 
gled forward  toward  arbitration.  As  a  practical  man  Presi- 
dent Taft  set  out  to  make  realities  of  our  international  aspira- 
tions and  to  make  our  foreign  policies  live  as  actual  benefits 
to  the  American  people.  Again,  as  a  practical  man,  the  Presi- 
dent knew  that  to  increase  the  output  the  first  step  must  be 
to  modernize  and  equip  the  plant.  So  he  placed  at  the  head 
of  the  Department  of  State  a  man  representing  a  great  manu- 
facturing State,  and  the  machinery  of  the  department  was  organ- 
ized with  a  purpose  of  aiding  our  people  in  trade  expansion. 
Under  his  direction  there  was  established  in  the  department  di- 
visions of  Far  Eastern,  Latin-American,  Near  Eastern  and 
European  affairs,  in  each  of  which  there  were  men  who  had  re- 
cently served  in  the  diplomatic  or  consular  service  in  the  countries 
concerned.  Thus  the  department  itself  and  the  American  public 
has  had  at  its  call  specialists  who  know  intimately  the  conditions 
with  which  we  are  dealing  at  long  distances  in  the  great  inter- 
national struggle  for  commercial  opportunities  and  the  political 
prestige  upon  which  the  former  so  often  depend. 

The  Bureau  of  Trade  Relations  was  expanded  and  highly 
specialized.  Through  a  Division  of  Information  a  considera- 
tion of  the  press  and  the  opinion  of  the  whole  world  was  brought 
to  bear  upon  our  own  problems  and  all  our  agents  abroad  were 
kept  informed  each  of  what  the  other  was  doing. 

The  Japanese  immigration  question  had  filled  the  public 
mind  with  anxiety,  but  President  Taft's  administration 
promptly  and  quietly  negotiated  a  treaty  to  prevent  Japanese 
competition  with  our  labor.  By  the  same  treaty  American  com- 
merce secured  most-favored  nation  treatment,  and  American  ex- 
ports to  Japan  in  the  fiseal  year  1912  are  fifty-four  million  dol- 
lars against  twenty-seven  millions  in  1909,  having  doubled  in 
three  years. 

A  firm  believer  in  the  scientific  handling  of  the  tariff  prob- 
lem, President  Taft  realized  that  to  exact  from  other  countries 
fair  treatment  for  American  exports  we  must  be  armed  with 
a  weapon  of  retaliation.  The  result  was  the  maximum  and 
minimum  clause  in  the  tariff  bill  of  1909.  With  this  weapon 
the  administration  secured  special  favored-nation  treatment — 
that  is,  treatment  as  good  as  that  given  any  other  nation — from 
all  the  countfies  of  the  world,  and  directly  benefited  agriculture, 
industry  and  commerce  in  all  sections  of  the  United  States.  Great 
I  enefits  were  obtained  for  the  cotton  seed  oil  of  the  South,  and 
unprecedented  advantages  were  obtained  for  the  animal  products 
of  the  farm,  for  machinery,  and  for  a  multitude  of  other  products. 

In  the  purely  commercial   sphere  may  be  mentioned  achieve 

352 


STATE  DEPARTMENT.  353 

ments,  like  the  order  for  the  two  Argentine  battleships,  in- 
volving the  expenditure  of  twenty  odd  millions  in  American 
labor  and  materials.  Contracts  and  concessions  of  this  l&nd 
secured  for  American  citizens  through  the  influence  of  the 
State  Department  during  the  past  three  years  probably  amount 
to  $100,000,000.  Among  these  were  a  contract  for  railroad 
supplies  of  upward  of  a  million  and  a  half  dollars;  contracts 
for  arms  and  ammunition  amounting  to  over  two  million 
dollars;  a  loan  of  $50,000,000  made  to  China,  with  the  sup- 
pqrt  of  the  department,  by  American  and  European  financiers, 
to  be  largely  expended  for  railroad  material,  American  ma- 
terials having  equal  preference  with  those  of  the  other  coun- 
tries. Besides  results  of  this  character,  the  diplomatic  and 
consular  officers  in  all  parts  of  the  world  are  actively  aiding 
in  building  up  American  export  trade  in  various  ways. 

In  the  up-to-date  administration  of  the  State  Department 
its  facilities  for  promptly  obtaining  information  on  any  sub- 
ject which  is  of  general  interest  to  the  American  people  are 
a  prominent  feature.  Here  are  a  few  illustrations  of  the  way 
the    consular   service    is    responsive: 

President  Taft,  in  the  discussion  of  the  high  cost  of  living 
and  the  remedies  proposed  for  it,  was  impressed  by  the  fre- 
quency of  the  references  to  the  co-operative  societies  in  Euro- 
pean countries,  and  the  suggestions  made  that  it  would  be 
advantageous  if  the  workings  of  these  societies  were  better 
understood.  The  President,  in  his  solicitude  for  the  general 
welfare,  directed  the  department  to  see  what  could  be  learned 
on  this  subject.  The  department  instructed  its  consular  officers 
in  Great  Britain  and  various  continental  countries  to  investi- 
gate and  report.  Their  reports  were  collated  and  transmitted 
to  Congress,  which  published  them.  They  are  replete  with 
useful  information  upon  the  specific  subject  in  question,  and 
also  show  the  universality  of  the  rise  in  the  cost  of  living, 
making  it  apparent  that  the  advances  in  the  United  States  are 
not  chargeable  to  *our  local  conditions  or  laws,  but  a  part  of 
a  world-wide  movement. 

Cotton  producers  in  the  South  were  especially  concerned  to 
know  the  quantity  of  cotton  available  throughout  the  world. 
A  conference  of  governors  of  Southern  States  was  about  to  be 
held.  They  sought  the  aid  of  the  State  Department  a  few 
days  before  the  opening  session  to  obtain  the  information  so 
greatly  desired.  Instructions  were  telegraphed  the  consular  offi- 
cers at  the  leading  centers  of  cotton  production  and  consumption 
to  obtain  the  facts  and  cable  them.  The  reports  were  received 
by  wire  and  at  once  transmitted  to  the  Southern  governors. 
These  took  occasion  to  make  special  acknowledgment  of  the 
value  of  the   department's   services  in  this  matter. 

The  select  committee  of  the  House  of  Representatives  which 
was  engaged  in  the  sugar  investigation  wanted  data  in  regard 
to  wholesale  and  retail  prices  of  sugar  throughout  the  world 
and  a  variety  of  other  information.  It  sought  the  aid  of  the 
State  Department.  The  consular  officers  were  instructed  to 
make  the  necessary  investigation,  and  their  reports  covering  the 
subject  were  transmitted  to  the  House  committee. 

Permanent  results  in  the  promotion  of  our  foreign  trade 
have  been  kept  especially  in  view  in  the  activities  of  the  State 
Department.  There  has  been  obtained  the  recognition  on  the 
part  of  all  importing  nations  of  the  food  certificates  of  the 
United  States  Department  of  Agriculture  as  evidence  of  the 
purity  of  the  products  so  certified  under  the  provisions  of  the 
Pure  Food  and  Drugs  Act  of  June  30,  1906.  Such  recognition 
has  operated  to  remove  restrictions  that  previously  had  barred 
American  pork  products  from  several  countries  and  had  em- 
barrassed our  meat,  and  lard  trade  in  others.  The  gain  in 
exports  of  these  commodities  in  1911  over  1910  exceeded 
$25,000,000.  Our  total  foreign  sales  of  pork  products  for 
1911  amounted  to  over  $125,000,000. 

There  has  been  brought  about  the  adoption  by  various  gov- 
ernments of  regulations  adequate  for  the  improvement  of 
sanitary  and  other  conditions  connected  with  the  preparation 
and  export  of  fruits  and  other  vegetable  products  shipped  to 
the  United  States.  These  precautionary  measures  are  in  the 
interest  of  the  health  of  the  American  people. 


354  STATE  DEPARTMENT. 

Various  sugggestions  offered  by  the  department  have  been 
adopted  by  foreign  governments  for  the  improvement  of  the 
international  parcels-post  service  from  the  United  States,  and 
measures  for  the  further  betterment  of  this  service  are  under 
consideration.  This  is  obviously  beneficial  to  American  mail- 
order houses,  to  all  exporters  of  small-package  goods,  and 
aids  in  the  distribution  of  samples  of  merchandise. 

The  commercial  diplomacy  of  the  administration  is  steadily 
overcoming  the  lead  which  European  countries  had  over  us  in 
the  South  American  trade.  The  geographical  equality  of  Europe 
with  the  United  States,  as  measured  by  ocean  distances  to  the  east 
coast,  had  become  an  actual  trade  superiority  through  subsidized 
steamship  lines  from  the  European  ports,  through  the  control  of 
banking  facilities,  the  ownership  of  railway  lines,  and  the 
reciprocal  influence  of  the  European  and  South  American 
newspapers  in  keeping  their  readers  in  touch  with  the  events 
of  both  Europe  and  South  America.  Now  our  national  policy 
of  mutual  helpfulness  and  confidence  in  our  relations  with  the 
Latin-American  countries  is  beginning  to  bear  fruit. 

Our  total  trade  with  South  America — imports  and  exports — 
last  year  was  $291,518,644,  as  against  $154,767,537  ten  years 
ago.  Our  exports  to  South  America  were  $108,894,894,  an 
increase  of  $64,494,699  in  ten  yuears.  To  Latin  America  as 
a  whole  the  exports  of  the  fiscal  year  1912  amounted  to  about 
three  hundred  million  dollars,  against  two  hundred  millions 
in  1909.  That  is  making  some  headway.  We  shall  continue 
to  make  headway  both  in  the  east  coast  countries,  with  their 
great .  internal  development,  and  on  the  west  coast,  with  the 
results  that  will  come  from  the  Panama  Canal. 

In  1909  British,  French  and  German  bankers  were  about 
to  sign  with  China  an  agreement  to  finance  a  great  system  of 
railroads  from  Canton  to  Hankow  and  westward  to  Szechuen, 
through  a  populous  part  of  the  Chinese  Empire.  This  was 
known  as  the  Hukuang  loan.  This  loan  was  to  be  secured  by 
internal  taxes  called  likin.  By  the  treaty 'of  1903  China  has 
promised  to  abolish  likin,  which  was  a  tax  most  vexatious  to 
commerce.  The  United  States  had  been  urging  China  to  reform 
her  currency,  whereupon  the  Powers  would  allow  her  to 
increase  her  customs  tariff  to  compensate  for  the  loss  caused 
by  the  abolition  of  likin.  It  was  clear  that  if  these  revenues 
were  hypothecated  for  a  purely  European  loan,  when  the  United 
States  came  to  talk  about  its  treaty  rights  the  answer  would  be 
"What  is  this  to  you?  Your  citizens  are  not  interested.  Ours 
hold  these  revenues  for  security."  A  country's  commerce  in- 
creases or  falls  off  in  proportion  to  its  prestige.  The  United  States 
had  been  severely  criticised  for  talking  a  lot  about  the  "open 
door"  while  really  having  material  interests  too  small  to  give  it 
a  right  to  be  heard.  Here  was  a  chance  to  put  America  in  the 
first  rank  in  prestige  and  in  real  interest  as  well  as  in  the  senti- 
mental interest  engendered  by  the  Hay  policy.  The  department 
at  once  realized  the  vast  importance  of  American  participation  in 
this  loan.  Looking  about  for  an  instrumentality  to  use  for  this 
broad,  national  purpose,  the  department  found  a  group  of  Amer- 
ican bankers  powerful  enough  in  resources  to  be  able  to  enter 
the  struggle  with  the  strongest  powers  of  European  finance.  To 
the  surprise  of  the  European  chancelleries  and  after  President 
Taft  had  telegraphed  directly  to  the  Chinese  regent  the  victory 
was  won.  Our  exports  to  China  in  the  fiscal  year  1912  show  an 
increase  of  50  per  cent  over  1910. 

It  will  be  remembered  that  in  his  famous  speech  made  at 
Shanghai  in  1907  President  Taft  had  revealed  his  keen  and 
statesmanlike  realization  of  the  problems  of  the  Far  East. 
American  participation  in  this  Hukang  loan  proved  but  the 
beginning  of  a  broad  policy  based  on  his  penetrating  view  of 
the  future  in  China.  Having  shown  China  that  we  were  a 
practical  as  well  as  a  theoretical  friend,  China  applied  to  the 
United  States  for  a  loan  for  currency  reform,  the  thing  most 
necessary  to  the  prosperity  of  our  trade  with  that  empire. 
American  bankers  were  prepared  for  the  venture,  and  the 
American  Government  invited  in  turn  British,  French  and 
German  bankers  to  join,  and  their  co-operation  was  readily 
obtained.     A  great  underlying  idea  of  the  policy  of  these  intri- 


STATE  DEPARTMENT.  355 

cate  negotiations  was  the  theory  of  the  Administration  that  the 
creation  of  a  real  community  of  material  interests  through  great 
international  loans  would  best  serve  to  assure  that  concert  of 
the  great  powers  in  China  so  necessary  to  the  safety  of  the  prin- 
ciple of  the  "open  door"  and  the  preservation  of  the  Chinese  em- 
pire itself. 

In  Liberia  there  is  a  little  republic  founded  long  ago  by 
philanthropists  and  colonized  by  American  negroes.  It  was 
about  to  lose  its  independence  at  the  hands  of  its  powerful  Euro- 
pean neighbors  through  financial  complications  and  weakness. 
It  appealed  under  a  treaty  to  this  country,  its  guardian.  The  State 
Department  quietly  went  to  work  and  brought  about  an 
arrangement  whereby  American  and  foreign  bankers  are  helping 
Liberia  out  of  the  financial  troubles.  Its  frontiers  are  defined, 
it  gets  an  American  general  receiver  of  customs  and  three  or 
four  negro  officers  of  our  army  to  train  its  frontier  constabu- 
lary, and  starts  with  new  hope  on  a  career  of  comparative 
progress. 

The  Pan-American  policy  of  President  Taft  has  had  as  its  key- 
notes friendship,  right  and  justice,  with  the  feeling  that  it  was 
an  insult  to  the  republics  of  Latin-America  in  seeking  friendship 
to  be  afraid  to  ask  right  and  justice.  Castro  was  compelled  to 
leave  Venezuela,  to  the  undying  gratitude  of  the  Venezuelans. 
Nicaragua  was  required  to  settle  the  Emery  claim,  and  Zelaya's 
rule,  which  had  for  seventeen  years  been  characterized  by  extreme 
injustice  to  the  plain  people  of  Nicaragua,  was  terminated.  By 
honorable  arbitration  the  thirty-year-old  Alsop  case,  which  had 
embittered  our  relations  with  Chile,  was  adjusted.  Latin-Amer- 
ica has  responded  to  the  realization  of  President  Taft  that  they, 
like  us,  believe  in  friendship  with  honor.  The  result  has  been  a 
closer  relationship  in  which  the  United  States  and  such  great 
republics  as  Argentine,  Chile,  Brazil  and  others  are  trusting 
one  another,  believing  in  a  real  Pan- Americanism. 

There  are  pending  before  the  Senate  conventions  with  Nica- 
ragua and  Honduras.  These  are  on  the  principle  of  the  Santo 
Domingo  arrangement,  which  has  assured  years  of  peace  to 
that  republic.  They  simply  give  the  United  States  the  privilege 
of  keeping  political  brigands  from  waging  devastating  revolu- 
tion and  to  protect  such  American  loans  as  may  be  made  to  re- 
habilitate the  finances  of  Honduras  and  Nicaragua.  Nicaragua 
has  employed  an  American  financial  adviser,  two  claims  commis- 
sioners, a  collector  of  customs,  an  excise  expert  and  a  police 
expert. 

Through  all  the  recent  troubles  of  the  neighboring  Republic  of 
Mexico,  the  President,  with  an  anxious  eye  to  the  safety  of  our 
40,000  people  in  that  country,  took  one  wise  measure  after  another 
to  assure  hands  off,  to  hold  aloof  from  Mexico's  internal  workings, 
and  yet  to  insist  upon  the  protection  of  American  interests,  and  to 
safeguard  American  rights. 

The  Democrats  in  the  Senate  have  practically  destroyed 
President  Taft's  magnificent  arbitration  treaties  with  Great 
Britain  and  France.  These  treaties  represented  the  world's  highest 
aspiration  toward  peace  and  arbitration. 

Besides  leading  the  world  in  the  ideals  of  peace  and  arbi- 
tration, President  Taft's  Administration  has  actually  pre- 
vented three  wars.  It  proposed  and  successfully  carried  out  the 
tripartite  mediation  of  the  United  States,  the  Argentine  Republic 
and  Brazil,  which  prevented  war  between  Peru  and  Ecuador  when 
the  opposing  armies  were  advancing  literally  in  sight  of  each  other. 
Some  months  ago,  when  Haiti  and  the  Dominican  Republic  were 
at  each  other's  throats  their  hands  were  stayed  by  the  influence 
of  the  United  States.  When  civil  war  was  just  breaking  out 
in  Honduras  the  State  Department  sent  a  commissioner,  who 
brought  the  opposing  leaders  together  on  the  deck  of  an 
American  warship,  with  the  result  of  an  understanding  which 
has  kept  the  peace  ever  since  in  that  republic.  The  old 
boundary  dispute  between  Panama  and  Costa  Rica,  when  it 
had  reached  a  dangerous  stage,  was  submitted  to  arbitration 
by  the  Chief  Justice  of  the  United  States  after  a  day's  negotiation 
in  the  State  Department.  With  the  same  good  offices  Haiti  and 
Santo  Domingo  have  agreed  to  negotiate  for  the  arbitration  of 
lieir  boundary  difficulty.     So  keen  has  President  Taft  been  to 


:i:>K  STATE  DEPARTMENT.  ~ 

forestall  causes  which  might  compel  another  intervention  by  the 
United  States  in  Cuba  that  his  wise  and  friendly  advice  to  the 
Cuban  Republic  has  been  well  called  the  "preventive  policy." 

With  a  businesslike  realization  of  the  needs  of  our  com- 
merce, President  Taft  has  urged  legislation  to  facilitate  the 
establishment  of  American  banks  and  branches  of  American 
banks  in  foreign  countries,  especially  Latin  America,  and  in 
his  annual  message  of  1910  he  had  this  to  say  of  the  need  of 
aid  to  our  foreign  merchant  marine  : 

"Another  instrumentality  indispensable  to  the  unhampered 
and  natural  development  of  American  commerce  is  merchant 
marine.  All  maritime  and  commercial  nations  recognize  the 
importance  of  this  factor.  The  greatest  commercial  nations, 
our  competitors,  jealously  foster  their  merchant  marine.  Per- 
haps nowhere  is  the  need  for  rapid  and  direct  mail,  passenger 
and  freight  communication  quite  so  urgent  as  between  the 
United  States  and  Latin  America.  We  can  secure  in  no  other 
quarter  of  the  world  such  immediate  benefits  in  friendship  and 
commerce  as  would  flow  from  the  establishment  of  direct  lines 
of  communication  with  the  countries  of  Latin  America  ade- 
quate to  meet  the  requirements  of  a  rapidly  increasing  appre- 
ciation of  the  reciprocal  dependence  of  the  countries  of  the 
Western  Hemisphere  upon  each  other's  products,  sympathies 
and  assistance. 

"I  alluded  to  this  most  important  subject  in  my  last  annual 
message;  it  has  often  been  before  you,  and  I  need  not  recapitu- 
late the  reasons  for  its  recommendation.  Unless  prompt  action 
be  taken,  the  completion  of  the  Panama  Canal  will  find  this 
the  only  great  commercial  nation  unable  to  avail  in  inter- 
national maritime  business  of  this  great  improvement  in  the 
means  of  the  world's  commercial  intercourse. 

"Quite  aside  from  the  commercial  aspect,  unless  we  create 
a  merchant  marine,  where  can  we  find  the  seafaring  popula- 
tion necessary  as  a  natural  naval  reserve,  and  where  could 
we  find,  in  case  of  war,  the  transports  and  subsidiary  vessels 
without  which  a  naval  fleet  is  arms  without  a  body?  For 
many  reasons  I  cannot  too  strongly  urge  upon  the  Congress 
the  passage  of  a  measure  of  mail  subsidy  or  other  subven- 
tion adequate  to  guarantee  the  establishment  and  rapid  devel- 
opment of  an  American  merchant  marine,  and  the  restoration 
of  the  American  flag  to  its  ancient  place  upon  the  seas." 

By  means  of  the  International  Opium  Conference  held  at  The 
Hague  last  winter,  in  which  the  United  States  took  so  prominent  a 
part,  the  nations  have  reached  an  agreement  to  co-operate  with 
China  in  eradicating  the  opium  evil  and,  also,  themselves  to  under- 
take by  domestic  legislation  to  end  the  vicious  traffic  in  this  and 
other  injurious  habit-forming  drugs. 

The  seventy-year-old  fisheries  dispute  with  Great  Britain 
has  been  successfully  settled  by  arbitration  at  The  Hague; 
the  Passamaquoddy  Bay  boundary  dispute  has  been  settled 
by  arbitration;  fisheries  regulations  for  the  boundary  waters 
between  the  United  States  and  Canada  have  been  negotiated 
and  laid  before  the  Congress;  there  has  been  created  a  High 
Joint  Commission  to  deal  with  various  questions  arising  with 
Canada,  such  as  the  distribution  of  waters,  etc.;  a  convention 
between  the  United  States,  Great  Britain,  Japan  and  Russia 
providing  means  for  the  preservation  and  protection  of  fur- 
seals  in  the  North  Pacific  was  signed  July  7,  1911,  thfks  bring- 
ing to  success  the  long  and,  at  times,  apparently  hopeless 
effort  to  preserve  the  valuable  seal  herds  of  the  United  States. 

Investigations  Abroad  in  the  Interest  of  the  Farmer. 

President  Taft  has  set  the  State  Department  to  work 
directly  in  the  interest  of  the  American  farmer.  He  wants  to 
provide  the  American  farmer  with  cheap  money,  that  he  may 
increase  the  productivity  of  his  land,  just  as  the  farmer  of 
Europe  has  done.  The  European  farmer  is  to-day  the  peer 
of  the  biggest  industrial  corporation  of  his  country  as  a  bor- 
rower. He  secures  money  on  terms  as  good  as  those  extended 
to  municipalities  or  railways.  But  the  American  farmer  is 
forced  to  borrow  his  money  under  the  old  mortgage  system. 


STATE  DEPARTMENT.  357 

He  is  restricted  to  the  local  money  market  in  floating  his 
mortgage.  If  bad  crops,  or  any  other  local  condition  makes 
money  tight  in  his  neighborhood  he  suffers.  He  pays  one  rate 
of  interest  in  Texas  arfd  another  in  Maine.  Even  under  the 
most  favorable  conditions  he  is  forced  to  pay  a  higher  rate  of 
interest  than  his  farm  land  security  should  require.  He  cannot 
secure  as  advantageous  terms  as  he  should.  He  needs  not 
only  cheap  money,  but  "quick"  money.  In  short,  f©r  him  to 
reap  to  the  fullest  extent  the  benefits  of  his  labor,  he  must 
have  a  modern  financial  machine  to  assist  him,  to  afford  him 
credit — easily,  quickly  and  cheaply,  just  as  any  commercial 
house  has  to-day. 

Co-operation  among  the  farmers  of  Europe  has  given  them 
these  advantages.  Instead  of  each  individual  farmer  pledging 
his  land  or  personal  property  as  security  for  a  mortgage  loan, 
as  is  done  in  this  country,  groups  of  farmers  in  Europe  pledge 
their  united  security,  and  bonds  issued  upon  this  security  are 
floated  everywhere  over  the  country,  so  that  the  European 
farmer  is  relieved  from  the  disadvantages  of  a  narrow  money 
market.  His  mortgage-secured  bond  is  sold  in  the  biggest 
money  centers,  presenting  as  attractive  an  investment  as  a 
gilt-edged  industrial  bond.  Through  rural  banks  European 
farmers  are  provided  with  modern  financial  machinery.  Presi- 
dent Taft  hopes  to  assist  the  American  farmer  by  giving  him 
some  such  financial  machinery.  The  present  system  under 
which  the  farmer  secures  his  money  is  an  unnecessary  burden, 
and  one  which  President  Taft  declares  must  be  removed.  He 
considers  it  just  as  essential  that  the  farmer  should  be  given 
this  financial  machinery  for  the  conduct  oj  his  business  as 
that  the  banking  and  currency  laws  of  the  country  should  be 
reformed  in  the  interest  of  general  business.  Therefore,  he 
has  directed  the  Secretary  of  State  to  set  all  of  the  American 
diplomatic  officers  in  the  countries  where  the  farmers'  co- 
operative credit  system  is  used  at  work  to  study  the  question, 
so  that  a  plan  may  be  formulated  suitable  f©r  the  adoption 
of  the  system  in  the  United  States. 

President  Taft  selected  Myron  T.  Herrick,  formerly  Governor 
of  Ohio,  who  has  made  the  farmers'  welfare  problem  a  careful 
study  for  years,  and  sent  him  to  Paris  as  Ambassador,  with  special 
instructions  to  make  an  investigation  of  the  European  farmers' 
credit  systems  in  the  interest  of  the  American  farmer.  He  gave 
this  to  Ambassador  Herrick  as  his  most  important  task.  When 
the  investigation  has  been  completed  President  Taft  will 
recommend  legislation  extending  these  advantages  to  the 
American  farmer.  Such  legislation  is  urged  in  the  Republican 
national  platform. 


TREASURY  DEPARTMENT. 

Reforms  in  the  Customs  Service. 

That  part  of  the  public  service  through  which  is  collected  the 
customs  revenue,  amounting  approximately  to  $320,000,000  a 
year,  or  nearly  one-half  of  the  total  income  of  the  Government, 
has  received  the  personal  attention  of  the  present  Administra- 
tion with  most  gratifying  results.  The  view  taken  has  been  of 
the  broadest  possible  character,  striving  to  elevate  the  standard 
of  efficiency  as  applied  to  the  personnel  of  the  service,  embracing 
an  equitable  and  effective  application  of  the  tariff  laws  from  a 
business  standpoint,  going  into  the  field  of  commercial  activity 
and  co-operating  at  first  hand  with  the  business  man,  and  at- 
tacking irregularities  which  threatened  the  very  existence  of 
honest  importers  of  numerous  lines  of  foreign  merchandise. 

In  the  investigation  of  conditions  in  the  import  trade  of  the 
country  great  disclosures  of  fraud  were  made  and  punished. 
The  Department  applied  the  acid  test  of  regularity  and  honesty 
to  every  important  branch  of  import  activity.  Among  other 
things,  cutlery,  art  objects,  model  gowns,  woolens  and  linings, 
feathers  and  flowers,  Panama  hats,  laces  and  embroideries, 
special  machinery,  Unoleum  and  linen  were  found  to  be  entered 


358  TREASURY  DEPARTMENT. 

through  various  customs  ports  under  conditions  which  made 
competition  impossible  on  the  part  of  honest  importers  who 
complied  with  both  the  letter  and  the  spirit  of  the  customs  law. 

In  connection  with  the  sugar  frauds,  for  example,  one  com- 
pany alone  paid  the  Government  as  judgment  in  a  forfeiture 
suit,  $135,486.32;  as  compromise  in  a  civil  suit,  $2,000,000,  and 
as  compromise  in  drawback  cases,  $700,000,  a  total  of  $2,835,- 
486.32.  Another  sugar  company  paid  in  compromise  $695,573.19, 
and  another  $604,304.27.  Offers  now  pending  aggregate  over 
$350,000. 

The  number  of  criminal  prosecutions  in  customs  cases  from 
March  4,  1909,  to  June  1,  1912,  was  411.  From  these  340  con- 
victions resulted,  and  many  jail  sentences.  During  this  time  the 
amount  collected  in  fines  in  criminal  cases  was  $209,635.04. 

The  number  of  customs  civil  suits  filed  between  March  4,  1909, 
and  June  12,  1912,  was  509,  and  the  amount  collected  therein 
$4,672,216.86.  Three  hundred  and  sixty-seven  cases  of  this  sort 
were  settled  without  suit  upon  payment  of  fines  amounting  to 
$2,615,796.90. 

Since  March  4,  1909,  then,  the  Department  has  collected 
$7,497,648.80  in  civil  and  criminal  customs  cases,  and  upon  cus- 
toms claims  without  suit.  During  the  period  from  January  1, 
1906,  to  March  4,  1909,  under  the  previous  Administration,  a 
total   of  only  $511,358.75   was  collected. 

This  is  a  clear  receipt  annually  of  over  22  per  cent  of  the  en- 
tire cost  of  collecting  the  revenue  from  customs  for  the  three 
years  in  question. 

A  greater  achievement,  however,  than  the  collection  of  evaded 
duties  has  been  flhe  rehabilitation  of  great  lines  of  commercial 
activity,  wherein  it  is  now  possible  for  the  honest  and  con- 
scientious importer  to  transact  business  along  legitimate  lines. 
It  is  now  not  only  possible,  but  advisable,  to  import  merchan- 
dise according  to  law. 

The  customs  service,  under  the  present  Administration,  has 
been  beset  with  unusual  difficulties.  It  was  at  once  confronted 
with  the  perplexities  involved  in  the  enforcement  of  a  new  gen- 
eral tariff  Act,  the  Payne  law  of  August  5,  1909,  which  departed 
in  many  ways  from  any  previous  tariff  Act,  involving  approxi- 
mately 900  changes  in  the  rates  of  duty  alone.  During  the  two 
years  following  its  enactment,  over  266,000  classification  and 
appraisement  appeals  were  filed  by  importers. 

To  offset  in  part  this  difficulty,  the  Administration  estab- 
lished the  Court-  of  Customs  Appeals,  which  has  had  a  far- 
reaching  effect  in  remedying  the  delays  in  customs  cases  which 
had  for  so  many  years  been  a  serious  obstruction  to  the  trans- 
action of  commerical  business.  This  Court  began  the  hearing 
of  cases  in  June,  1910.  On  June  1,  1912,  the  Court  had  com- 
pleted the  second  year  of  its  work.  During  this  period  900 
cases  were  adjudicated;  385  written  opinions  were  handed  down, 
some  involving  a  number  of  cases ;  and  at  the  present  time  the 
remarkable  legal  record  has  been  established  of  a  docket  on 
which   only  three   cases   remain   argued   and   undecided. 

Before  the  creation  of  this  Court,  cases  bexore  the  Board  of 
General  Appraisers  could  be  appealed  to  the  Circuit  Courts,  then 
to  the  Circuit  Courts  of  Appeals,  and  finally  to  the  Supreme 
Court  of  the  United  States.  Under  the  old  practice,  the  mini- 
mum time  in  which  an  issue  could  be  finally  adjudicated  be- 
tween the  importers  and  the  Government  was  two  years,  and  in 
some  cases,  involving  hundreds  of  thousands  and  even  millions 
of  dollars,  more  than  ten  years  were  consumed  before  final  set- 
tlement was  reached.  At  the  present  time  final  decisions  by 
the  Court  of  Customs  Appeals  may  be  reached  within  two  months 
after  the  #ases  are  decided  by  the  Board  of  General  Appraisers. 
Cases  normally  come  to  final  settlement  within  from  four  to 
six  months  after  the  Board's  decision,  and  what  used  to  be  a 
matter  of  years  has  now  been  reduced  to  a  matter  of  months. 

The  new  tariff  Act,  in  addition  to  changing  so  many  rates 
of  duty,  made  many  administrative  changes,  affecting  a  great 
variety  of  subjects  and  necessitated  exhaustive  investigations 
in  the  United  States  and  abroad.  It  has  been  from  the  beginning 
the  desire  of  the  Secretary  of  the  Treasury  to  conduct  the  cus- 


TREASURY  DEPARTMENT.  359 

toms  service,  a  vast  business,  employing  nearly  8,000  persons 
and  extending  to  every  corner  of  the  country,  upon  strict  busi- 
ness principles.  The  policy  has  been  insisted  upon  of  giving 
careful  and  exhaustive  attention  to  every  merchant  or  business 
man,  no  matter  how  small  the  interests  involved  in  his  appeal, 
and  on  larger  lines  it  has  been  attempted  to  put  into  effect 
methods  of  strict  business  efficiency  which  would  enable  the 
importers  of  this  country  to  comply  with  the  necessary  require- 
ments of  the  tariff  laws  with  the  greatest  possible  expedition 
and  with  the  least  possible  friction. 

In  this  connection  the  force  of  appraising  officers,  who  form 
perhaps  the  keynote  of  the  service,  have  been  summoned  to- 
gether each  year  in  New  York  for  intimate  conference  on  points 
of  difficulty  with  a  view  to  establishing  a  system  of  uniform 
appraisement.  Along  this  same  line  a  system  has  been  estab- 
lished whereby  the  appraising  and  classifying  officers  at  each 
port  of  the  country  send  at  short  intervals  to  New  York  a  rec- 
ord of  the  appraisements  made  by  them.  A  summary  of  these 
ports  is  forwarded  to  Washington  monthly,  so  that  the  De- 
partment may  keep  a  general  supervision  over  this  most  im- 
portant branch  of  the  service. 

It  has  been  the  motto  of  the  service  to  accept  nothing  as  right 
merely  because  it  was  established.  Regulations  which  had  been 
in  force  in  the  Department  for  years  were  closely  examined  and 
freely  revised  where,  it  was  discovered  that  they  did  not  meet 
the  business  demands  of  the  time.  Among  the  sets  of  regula- 
tions which  have  been  thoroughly  revised  are  those  governing 
shipments  to  and  from  the  Philippines,  the  baggage  regula- 
tions, regulations  governing  the  examination  of  fruit,  execution 
of  bonds  covering  merchandise  brought  into  the  United  States 
for  temporary  stay,  the  sealing  of  merchandise,  examination 
of  teas,  free  entry  of  products  of  American  fisheries,  free  entry 
of  samples,  free  entry  of  the  baggage  of  Consuls  and  Diplomatic 
officers,  free  entry  of  works  of  art,  and  the  rates  of  drawback 
on  various  articles. 

In  connection  writh  the  examination  of  the  personal  effects 
of  persons  entering  the>  United  States,  extraordinary  efforts 
have  been  made  to  provide  facilities  and  a  force  of  men  at  the 
various  ports  which  would  enable  the  absolute  requirements  of 
the  law  to  be  carried  out  with  as  little  hardship  and  incon- 
venience as  possible  to  the  public.  Every  complaint  made  by  a 
dissatisfied  traveler  has  been  carefully  and  exhaustively  inves- 
tigated and  discipline  meted  out  where  it  proved  to  be  deserved. 

In  this  connection,  also,  recommendations  have  been  urgently 
made  to  Congress  for  such  a  revision  of  the  provisions  of  the 
law  as  would  exempt  from  duty  articles  of  small  value  pur- 
chased abroad  as  souvenirs  or  gifts  by  residents  of  this  coun- 
try. This  revision  if  enacted  will  result  in  the  removal  of  con- 
siderable inconvenience  to  the  traveling  public  at  a  compara- 
tively small  loss  of  revenue. 

Thorough  investigations  have  also  been  carried  out  in  every 
customs  office  in  the  country  with  a  view  to  the  rehabilitation 
of  the  service  and  the  institution  of  such  economies  as  were  con- 
sistent with  efficiency.  The  result  has  been  a  quickening  of 
administrative  efficiency;  the  insistence  upon  a  full  day's  work 
for  a  full  day's  pay ;  the  abolition  of  useless  places ;  the 
supplanting  of  incompetent  or  slothful  employes  by  men  with 
a  keener  appreciation  of  their  official  responsibilities — in  short, 
the  establishment  in  the  service  of  modern  business  methods. 

At  New  York,  for  example,  which  collects  over  70  per  cent 
of  the  revenue  derived  from  customs,  although  nearly  10,000,000 
more  packages  of  merchandise  were  examined  at  the  Appraiser's 
Stores  during  the  year  1911  than  during  the  previous  year,  yet 
at  the  end  of  the  year  1911  there  were  only  one-fifth  as  many 
awaiting  examination  as  at  the  close  of  1910.  This  extraor- 
dinary improvement  has  been  brought  about  with  a  substan- 
tial decrease  in  the  force  of  the  appraiser's  office  and  a  conse- 
quent decrease  in  the  expenditure,  and  at  the  same  time  with 
an  increase  in  efficiency  which  is  generally  admitted  by  the 
importing  public  of  New  York. 

To  give  further  variety  to  the  unusual  difficulties  which  have 


360  TREASURY  DEPARTMENT. 

fallen  upon  this  Administration,  the  Department  has  been 
obliged  to  guard  the  hundreds  of  miles  of  the  southern  boundary 
of  the  United  States  during  two  revolutions  in  Mexico.  The 
unsettled  conditions  along  the  southern  border  have  required  the 
utmost  vigilance  on  the  part  of  the  Department  and  its  officers 
along  the  frontier,  in  co-operation  with  the  Departments  of 
State,  War  and  Justice,  to  prevent  violation  of  the  neutrality- 
laws. 

The  necessary  limitation  of  space  prevents  even  reference  to 
many  important  achievements  in  this  branch  of  the  Department 
service.  In  reviewing  the  whole  field,  however,  it  should  be  re- 
membered that  these  activities  have  been  pursued  not  in  a  theo- 
retical, but  in  an  extremely  practical  manner.  The  assessing 
of  duties  on  imported  merchandise  is  not  a  suitable  field  for 
experimentation  by  theorists ;  variations  of  a  fraction  of  a  cent 
at  different  ports  may  mean  the  ruin  of  an  entire  business  or- 
ganization. Reform  in  this  service  must  be  careful,  methodical 
and  sure.  But  reform  there  has  been,  and  though  careful,  it 
has  extended  to  the  remotest  corners  of  the  service. 

These  figures  speak  for  themselves :  the  value  of  importations 
of  merchandise  into  the  United  States  during  the  three  years 
ending  June  30,  1912,  increased  approximately  $743,000,000  over 
the  value  for  the  three  years  previous.  The  number  of  em- 
ployes in  the  customs  service  on  June  30,  1912,  was  nearly  200 
less  than  on  June  30,  1909.  The  net  expenditure  for  the  year 
ending  June  30,  1912,  was  approximately  $75,000  less  than  for 
the  previous  year.  This  is  the  first  year  (with  the  exception 
of  the  year  of  the  recent  panic)  for  fifteen  years  that  this  «x- 
penditure  has  not  increased  over  that  of  the  year  preceding. 


Reorganizing  the  Treasury. 

The  Treasury  Department  during  the  last  three  years  has 
undergone  a  most  complete  and  thorough  overhauling  and  re- 
organization. Immediately  after  entering  upon  the  duties  of 
his  office  the  Secretary  inaugurated  an  inquiry  for  the  pur- 
pose of  determining  to  his  own  satisfaction  how  the  methods 
of  administration  and  the  details  of  bookkeeping  and  account- 
ing in  the  Department  compared  with  the  most  approved 
modern  methods  employed  in  private  business.  His  first  step 
was  the  employment  of  a  reputable  firm  of  public  accountants 
and  this  firm  went  through  the  various  bureaus  and  services 
which  comprise  the  Department  and  submitted  a  report.  With 
its  recommendation  to  begin  upon,  the  Secretary  then  created 
a  Departmental  Committee,  to  supervise  the  work  of  reorgani- 
zation. A  more  detailed  scrutiny  of  the  work  and  methods  of 
each  bureau  than  it  had  been  possible  for  the  then  firm 
of  public  accountants  to  make  in  a  limited  time  was  now 
inaugurated.  Each  bureau  was  examined  by  a  select  com- 
mittee picked  from  other  bureaus.  These  select  committees 
were  appointed  by  the  Secretary  upon  the  recommendation  of 
the  Departmental  Committee. 

The  recommendations  of  these  sub-committees  were  considered 
with  the  opinions  of  the  Bureau  heads,  and  adopted  to  such  an 
extent  as  might  be  agreed  upon  or  determined  upon  by  the 
Secretary. 

The  result  of  this  systematic  inquiry  has  been  more  or  less 
changes  in  every  division  of  the  Treasury,  many  of  them  effect- 
ing important  economies,  and  all  calculated  to  simplify  and 
expedite  the  public  business,  doing  away  with  useless  formali- 
ties and  duplications. 

One  of  the  important  innovations  is  the  creation  of  a  General 
Supply  Committee,  to  purchase  common  supplies  in  bulk  for  all 
the  executive  departments.  During  the  first  year  of  its  opera- 
tions it  was  estimated  to  have  effected  a  saving  of  $189,000. 
and  as  its  operations  are  extended  and  the  committee  be- 
comes more  familiar  with  its  work  the  economies  will  be 
larger. 

Formerly  all  currency  received  at  the  sub-treasuries  in  con- 
dition   unfit   for  circulation   was   shipped  by   express   to   Wash- 


TREASURY  DEPARTMENT.  361 

ington  for  redemption  and  cancellation.  One  df  the  results 
of  this  inquiry  is  that  the  sub-treasuries  were  equipped  with 
cancelling  machines,  and  this  currency  is  now  cancelled  and 
then  shipped  by  registered  mail,  effecting  a  saving  in  trans- 
portation charges  of  approximately  $80,000  per  year. 

On  March  4,  1909,  there  were  four  disbursing  offiees  for  the 
Treasury  Department  in  Washington.  The  salary  list  amounted 
to  $29,050.  These  offices  were  consolidated  into  one  with  a 
salary  list  of  $15,390. 

In  the  office  of  the  Auditor  for  che  Post  Office  Department 
various  changes  in  accounting  methods  made  it  possible  to  re- 
duce the  force  of  clerks  by  110,  with  annual  salaries  aggregat- 
ing $123,530. 

It  is  impracticable  in  the  available  space  to  review  in  detail 
the  reforms  throughout  all  bureaus  and  divisions.  These  are 
simply  illustrative  of  the  work  of  reorganization  as  carried  on 
throughout  the  Treasury,  the  net  economies  of  which  to  De- 
cember 31,  1911,  were  amounting  to  $2,562,677  per  annum,  not 
counting-  increased  revenues  from  customs  or  internal  taxes, 
resulting  from  more  efficient  service. 


Legislation  Secured. 

Some  of  the  economies  that  have  been  effected  were  dependent 
upon  legislation,  which  was  provided  by  Congress  at  the  in- 
stance of  the  Administration.  Thus  the  Secretary  of  the  Treas- 
ury has  been  granted  authority  within  certain  limits  to  issue 
gold  certificates  against  gold  bullion  and  foreign  gold  coin. 
Formerly  certificates  could  be  issued  only  against  United  States 
coin.  As  there  is  now  over  $1,000,000,000  of  United  States  gold 
coin  in  the  certificate  reserves,  it  is  apparent  that  long  before 
this  could  be  exhausted  the  bullion  on  hand  could  be  converted 
into  coin.  The  act  does  not  close  the  mints  to  the  use  of  gold 
as  money,  or  affect  the  right  of  any  certificate-holder  to  demand 
gold  coin. 

The  Treasury  will  continue  to  pay  gold  coin  to  all  who  want 
it,  but  it  will  effect  an  important  economy  in  the  administration 
of  the  mints.  By  abolishing  the  mint  at  New  Orleans  and  the 
assay  office  at  St.  Louis  a  saving  of  over  $00,000  per  year  was 
effected. 

Upon  the  recommendation  of  the  Secretary  of  the  Treasury 
Congress  passed  an  act  allowing  collectors  of  customs  and  in- 
ternal revenue  to  receive  certified  checks  upon  National  and 
State  banks,  a  great  convenience  to  business  men. 


Internal  Revenue  Service. 

THE    CORPOEATION    TAX. 

The  Bureau  of  Internal  Revenue,  like  the  other  branches  of 
the  Treasury  service,  has  undergone  careful  scrutiny  during  the 
last  four  years,  and  the  field  service  in  particular  has  been  much 
strengthened  in  efficiency. 

A  new  compilation  of  the  laws  has  been  made ;  practically 
every  regulation  has  been  revised  with  a  view  of  collecting  the 
maximum  tax  with  the  minimum  amount  of  friction  and  annoy- 
ance ;  and  a  strict  merit  system  of  promotions  has  been  installed 
throughout  the  service,  and  prosecutions  of  persons  detected  in 
fraudulent  practices  have  been  vigorous  and  severe.  As  a  result 
frauds  in  the  manufacture  and  sale  of  alcoholic  liquors  have  been 
to  a  large  extent  eliminated,  and  the  complete  system  of  scien- 
tific control  installed  would  seem  to  render  the  return  of  ex- 
tended fraudulent  operations  an  impossibility.  The  same  is 
largely  true  with  respect  to  the  other  subjects  of  taxation,  par- 
ticularly oleomargarine  and  adulterated  butter.  The  number  of 
illicit  distilleries  seized  has  increased  from  1,130  in  1908  and 
1,743  in  1909  to  2,482  in  1911,  the  1912  figures  on  this  subject 
not  yet  being  available.  The  cost  of  collections  has  decreased 
from  $20.20  per  thousand  in  1909  to  $-17.11  per  thousand  in  1912, 


362  TREASURY  DEPARTMENT. 

though  the  compensation  of  a  number  of  classes  of  employees 
has  been  materially  increased  and  their  condition  bettered. 

For  the  fiscal  years  ended  June  30,  1908,  and  June  30,  1909, 
the  last  two  years  o  fthe  previous  administration,  the  internal 
revenue  collections  were  $251,665,950.04  and  $246,212,719.22,  re- 
spectively. For  the  two  years  ended  June  30,  1911,  and  June  30, 
1912,  the  aggregate  collections  were  $322,526,299.73  and  $321,- 
615.894.69,  respectively,  an  increase  in  1911  over  1908  of  $70,860,- 
349.69,  and  an  increase  in  1912  over  1909  of  $75,403,175.47. 

The  collections  for  the  fiscal  years  1911  and  1912  established 
new  high  records  for  the  Bureau  of  Internal  Revenue,  each  of 
these  years  surpassing  the  record  year  up  to  that  time,  1866, 
when  all  the  Civil  War  taxes  were  in  effect,  by  more  than  eleven 
millions  of  dollars.  In  the  previous  record  year  the  cost  of  col- 
lection was  $24.80  per  thousand,  or  45  per  cent  more  than  the 
cost  of  collection  during  either  of  the  past  two  years. 

Comparing  the  aggregate  collections  for  the  fiscal  year  just 
closed  (June  30,  1912)  with  the  collections  of  the  previous  admin- 
istration, it  will  be  noted  that  for  the  fiscal  year  1912  there  was 
received  from  the  new  tax  laws — corporation  tax,  $28,583,259.81, 
increased  ^ates  on  tobacco,  $10,000,000.00,  aggregating  $38,583,- 
259.81.  Deducting  this  aggregate  from  the  total  collections, 
$321,615,894.69,  we  have  $283,032,634.88,  as  against  $246,212,719.22, 
the  aggregate  from  the  same  sources  during  the  fiscal  year  ended 
June  30,  1909 ;  this  enormous  total  of  more  than  thirty-six  mil- 
lions of  dollars  for  the  year  1912  (for  1910  and  1911  the  amounts 
were  approximately  the  same),  representing  in  large  part,  an 
increase  to  the  Government  resulting  from  improved  business 
methods  in  tax  collections. 

The  Internal  Eevenue  Service  now  collects  more  revenue  for 
the  Government  than  any  other  agency,  not  excepting  the  Cus- 
toms Service.  In  no  time  in  all  of  its  history  have  the  rela- 
tions between  the  Government's  collecting  agency  and  the  tax- 
payers been  as  satisfactory,  and  at  no  time  in  the  history  of 
the  Service  has  the  work  of  the  Bureau  been  more  efficient 
and  the  taxes  as  closely  collected  as  they  have  been  during 
this  administration. 

NEW  LEGISLATION. 

Early  in  this  administration,  when  the  Treasury  was  suffer- 
ing a  serious  deficit,  the  President  evolved  a  plan  for  deriving  an 
income  from  the  enormous  volume  of  business  conducted  by  cor- 
porations, and  this  plan  was  enacted  into  what  was  known  as 
the  Corporation  Tax  Law.  The  yield  from  this  new  source  has 
proved  to  be  an  important  factor  in  the  national  revenues.  This 
law,  during  the  three  years  of  its  life,  has  yielded  income  as 
follows:  1910,  $20,959,783.74;  1911,  $33,511,525.00;  and  1912, 
$28,583,259.81.  In  addition  to  this  great  amount  of  revenue  the 
law  has  proved  practical  and  easy  of  administration,  the  cost  of 
collection  being  less  than  $10.00  per  thousand. 

Provision  was  made  in  the  tariff  act  of  August  5,  1909,  for 
increasing  the  rate  of  tax  on  practically  all  tobacco  products 
other  than  cigars  approximately  33  1/3  per  cent,  this  increase 
to  become  effective  July  1,  1910.  During  the  two  years  that 
this  new  rate  has  been  in  effect  the  increased  tax  therefrom  has 
approximated  ten  millions  of  dollars  per  annum. 


THE     WAR     DEPARTMENT. 

The  work  of  the  War  Department  under  President  Taft  has 
developed  in  a  marked  degree.  Mr.  Taft's  long  relationship  with 
the  department,  in  the  Philippines,  in  Cuba,  in  Panama,  and  then 
as  Secretary  of  War,  gave  him  a  close  insight  into  its  workings 
and  its  possibilities  both  as  a  mighty  engine  of  national  defense 
;nid  ns  nn  organization  whose  officers  and  men  could  be  used  in 
emergencies  in  the  interests  of  the  peoole. 


WAR  DEPARTMENT.  363 

The  Spanish  War  greatly  broadened  the  field  of  operations 
pertaining  to  the  War  Department  and  the  Army,  and  brought 
them  new  and  varied  activities;  and  to  meet  these  changed 
conditions  and  keep  abreast  of  the  rapid  and  world-wide 
advance  of  military  science  has  been  an  important  part  of 
the  work  of  that  department  since  that  time.  This  work  has 
been  carried  on  with  the  greatest  success,  and  the  Army 
organization  proper  has  experienced  a  marked  improvement 
in  recent  years.  During  President  Taft's  Administration  this 
work  of  development  has  been  maintained  with  unabated  vigor 
and  continuous  success.  The  Army  has  devoted  itself  more 
and  more  to  the  general  good  of  the  service  as  distinct  from 
the  special  interests  of  particular  branches.  A  system  for 
the  organization  of  general  depots  for  the  concentration  and 
supply  of  all  military  material  necessary  for  war  purposes 
has  been  established,  and  the  first  real  military  depots  this 
country  has  had  since  the  great  depots  were  abandoned  after 
the  Civil  War  have  been  established  in  Philadelphia,  while 
others  are  in  contemplation  in  the  Middle  West  and  near  the 
Pacific  coast. 

Closer  Relationship  With  State  Troops.     f 

Another  step  which  has  been  entered  upon  is  ^hat  of  a  closer 
organization  of  the  State  and  volunteer  forces  in  such  a  man- 
ner that  they  may  be  assembled  and  welded  together  in  case 
of  hostilities  and  the  country  pass  automatically  from  a  peace 
to  a  war  basis.  Bills  for  the  organization,  mobilization  and 
administration  of  the  regular  army,  the  organized  militia  and 
the  volunteer  forces  in  the  event  of  war  have  been  recom- 
mended by  the  Secretary  of  War  and  Chief  of  Staff,  and  sev- 
eral measures  for  the  establishment  of  a  National  Defense 
Council  are  now  pending  in  Congress  and  urgently  recom- 
mended by  the  President.  The  Articles  of  War,  which  now 
govern  the  conduct  of  the  Army  in  time  of  peace  and  war, 
have  been  thoroughly  revised  and  transmitted  to  the  Military 
Committee  of  both  houses  of  Congress,  with  the  recommenda- 
tion that  they  be  enacted  into  law  by  the  President  and  Con- 
gress, but  no  action  has  been  taken  up  to  this  time. 

The  system  which  now  prevails  in  the  European  countries 
of  the  world  of  bringing  the  average  citizen  into  closer  rela- 
tionship with  the  military  system  and  giving  him  a  training 
through  which  he  may  be  able  to  perform  his  proper  func- 
tions as  a  soldier  in  case  of  possible  war,  and  then  again 
return  as  quickly  as  possible  to  his  normal  civil  life,  has 
received  close  attention  and  careful  encouragement  by  the 
military  authorities  in  recent  years.  The  War  Department  has 
within  the  past  year  presented  to  Congress  plans  for  giving 
effect  to  these  views,  the  essential  feature  of  which  is  the  cre- 
ation of  the  largest  possible  reserve  of  trained  and  experi- 
enced men,  to  be  available  for  recall  from  civil  life  to  the 
colors  in  time  of  war.  The  process  by  which  this  is  proposed 
to  be  accomplished  consists  in  shortening  the  present  term  of 
enlistment  and  curtailing  the  privilege  of  re-enlistment,  thus 
passing  through  the  army  the  greatest  possible  number  of 
persons,  and  thus  giving  to  those  in  civil  life  a  military  training 
which  will  be  of  value  in  case  their  services  are  required  in 
actual  war. 

Another  feature  of  the  work  of  the  Army  has  been  to  bring 
itself  into  closer  touch  with  the  State  troops,  the  militia  of 
the  country,  and  co-ordinate  the  work  of  the  War  Department 
in  its  relation  to  the  militia  of  the  entire  country.  Important 
results  have  already  been  accomplished  toward  making  an 
efficient  field  soldiery  of  the  organized  militia,  arid  this  is 
especially  true  during  the  past  four  years.  Arms,  equipment 
and  uniforms  of  the  latest  pattern  in  use  in  the  Regular  Army 
have  been  supplied  to  the  militia  and  especial  attention  devoted 
to  fostering  those  more  technical  branches  which  take  the 
longest  time  to  train.  The  result  is  that  these  branches  have 
increased  in  number  about  50  per  cent.,  and  whenever  State 
troops  have  progressed  to  such  a  point  as  to  profit  by  the 
training  of  the  regular  army,  camps  of  instruction  are  estab- 


364  WAR  DEPARTMENT. 

lished  in  which  the  two  forces,  which  must  work  together  in 
time  of  war,  have  been  brought  closer  together  in  time  of 
peace.  Many  regular  army  officers,  representing  different 
branches  of  the  service,  have  been  detailed  f«r  duty  with  the 
organized  militia.  Instruction  in  target  practice  has  been 
given,  and  the  States  have  been  encouraged  in  every  possible 
way  to  organize  artillery  troops  to  man  the  coast  defenses 
and  in  other  ways  to  put  their  forces  in  condition  in  which 
they  will  be  immediately  available  in  case  of  war.  The 
various  schools  maintained  in  the  Army  for  officers  have 
been  thrown  open  to  such  officers  of  the  organized  militia  as 
have  progressed  far  enough  for  the  instruction  given.  Camps 
of  instruction  for  the  officers  of  the  militia  have  been  estab- 
lished yearly  in  each  State  and  many  officers  of  the  Regular 
Army  detailed  as  instructors.  Advantage  was  also  taken  of 
the  concentration  along  the  Mexican  border  during  the  last 
year  of  a  division  of  the  Regular  Army,  containing  about 
twelve  or  fifteen  thousand  officers  and  men,  and  more  than 
one  thousand  officers  of  the  organized  militia  were  enabled, 
by  visits  to  and  observation  of  the  daily  routine  of  this  large 
body  of  troops,  to  gain  extremely  important  information 
regarding,  their  future  duties  in  case  of  requirement  along 
these  lines. 

Panama  Canal. 

The  work  of  the  War  Department  in  relation  to  the  Panama 
Canal  has  been  of  very  great  importance,  and  is  justly  a 
matter  of  pride  on  the  part  of  every  citizen  in  the  United 
States.  The  work  upon  the  canal  has  been  vigorously  prose- 
cuted during  President  Taft's  Administration.  More  than  half 
the  total  excavation  required  has  been  made  since  his  inauguration 
on  March  4,  1909,  and  at  the  present  rate  of  progress  will  be  com- 
pleted by  July  1,  1913.  Under  the  splendid  administrative  effi- 
ciency of  Colonel  Goethals,  of  the  Engineer  Corps,  and  his  asso- 
ciates, this  colossal  work,  the  magnitude  and  complexity  of  which 
is  without  parallel  in  history,  has  been  carried  through  in  far  less 
than  schedule  time,  and  if  properly  supported  by  the  necessary  leg- 
islation by  Congress,  the  canal  can  be  opened  commercially  by  the 
beginning  of  the  year  1914..  The  work  of  constructing  seacoast 
defenses  for  the  termini  of  the  canal  was  begun  in  1911  by  the  War 
Department,  and  these  when  completed  will  protect  the  canal  locks 
against  naval  bombardment  and  free  the  navy  from  the  neces- 
sity of  guarding  the  canal  in  time  of  war  and  leave  it  to  follow 
its  true  objective — the  fleet  of  the   enemy. 

Philippines  and  Porto  Rico. 

The  work  in  the  Philippines  of  the  War  Department  and  of 
William  H.  Taft  as  Civil  Governor,  subsequently  as  Secre- 
tary of  War  and  then  as  President,  has  been  without  parallel 
in  administration  of  government  and  development  of  a  people. 
Mr.  Taft  as  Civil  Governor  of  the  Philippine  Islands  organized 
the  Bureau  of  Education  in  these  islands  in  1901.  In  1903 
there  were  2000  public  schools,  with  an  attendance  of  150,000 
pupils.  By  1908  there  were  3700  primary  schools,  with  an 
enrollment  of  360,000  pupils  and  with  6600  Filipino  teachers, 
in  addition  to  the  American  teachers,  and  in  the  last  four 
years  have  shown  an  increase  of  enrollment  of  pupils  to  610,- 
493,  while  there  are  now  35  high,  245  intermediate  and  4131 
primary  schools  in  addition  to  6  arts  and  trades  schools,  23 
manual  training  shops,  3  agricultural  schools,  1  commercial 
school  and  1  normal  school.  Ten  thousand  teachers  are  now 
employed.  In  addition,  the  University  of  the  Philippines, 
composed  of  six  different  colleges,  has  been  organized  in 
definite  form,  and  has  a  registration  of  1320  students  in  the 
various  departments.  Mr.  Taft  established  English  as  the 
language  of  the  schools,  not  to  deprive  the  Filipinos  of  a 
native  language,  but  because  English  is  not  only  the  language 
of  the  sovereign  power,  but  the  business  language  of  the 
Orient.  As  a  result  there  are  more  people  in  the  Philippines 
to-day  who  speak  and  write  English  than  who  speak  and  write 
any   other  language. 


WAR  DEPARTMENT.  365 

The  development  of  Porto  Rico  under  President  Taft's 
Administration  has  been  one  of  remarkable  progress  in  both 
public  and  private  activities.  There  now  exists  in  that  island 
a  greater  prosperity  among  the  people  than  at  any  previous 
time.  Every  industry  is  active  and  prosperous,  furnishing 
employment  to  all.  Merchandise  shipped  from  Porto  Rico  to 
the  United  States,  which  amounted  prior  to  annexation  to  but 
about  $3,000,000  per  annum,  was  in  1911  $40,000,000  in 
value,  and  in  the  fiscal  year  just  ended  shows  a  considerable 
increase  over  the  preceding  year.  Practically  all  of  this  vast 
sum  of  $40,000,000  received  by  Porto  Rico  for  this  merchandise  is 
expended  in  the  United  States  in  the  purchase  of  other  classes  of 
merchandise,  manufactures,  foodstuffs,  etc.,  required  by  the  people 
of  Porto  Rico;  and  the  value  of  merchandise  shipped  from  the 
United  States  to  Porto  Rico,  which  prior  to  annexation  only  aver- 
aged from  about  $2,000,000  to  $3,000,000  per  annum,  was  in  1911 
$39,000,000,  and  in  1912  showed  also  a  material  increase.  The 
prosperity  among  the  people  of  Porto  Rico  indicated  by  these  ad- 
vances in  trade  has  been  further  developed  by  similar  progress  in 
governmental  matters.  The  number  of  graded  schools  has  increased 
from  563  in  1908  to  695  in  1911,  a  marked  contrast  with  conditions 
prior  to  annexation,  since  there  was  in  1899  but  a  single 
public  school  building  in  the  island  built  for  that  purpose. 
The  number  of  miles  of  excellent  macadamized  public  roads 
has  been  annually  increased,  and  facilities  thus  rendered  the 
people  of  Porto  Rico  for  transporting  the  product  of  the  interior 
of  tbe  islands  to  the  water's  edge  and  thence  to  the  mar- 
kets of  the  United  States  and  of  the  world.  During  the 
present  Administration  Secretaries  Dickinson  and  Stimpson, 
of  the  War  Department,  personally  visited  Porto  Rico  to  study 
conditions  in  the  islands,  and  on  returning  recommended  the 
conferring  of  United  States  citizenship  on  Porto  Ricans,  and 
a  measure  to  this  end  has  passed  the  House  of  Representatives 
and  is  now  pending  in  the  Senate. 


Work  on  the  Mexican  Border. 

One  of  the  most  important  features  of  the  work  of  the  War 
Department  and,  indeed,  the  Administration  in  1911  and  1912, 
has  been  the  massing  of  several  thousand  troops  along  the 
Mexican  border  with  the  purpose  of  preventing  through  the 
influence  of  their  presence  such  acts  of  violence  against  Amer- 
icans in  Mexico  and  property  owned  by  them  as  might,  if  not 
prevented  by  this  process,  compel  the  sending  of  troops  into 
Mexico  for  their  protection.  At  one  time  the  entire  border, 
from  the  mouth  of  the  Rio  Grande  in  Texas  to  Santiago,  Cal., 
was  patrolled  by  United  States  forces,  and  as  the  exigency 
lessened  the  number  of  troops  was  reduced,  leaving,  however, 
a  force  large  enough  to  render  the  civil  authorities  any  aid 
that  might  be  required  to  secure  the  proper  enforcement  of  the 
neutrality  laws  in  Mexico.  Upon  this  subject  President  Taft 
in  his  speech  of  acceptance  said:    (See  page  13,  speech.) 

Our  Mexican  neighbor  on  the  south  has  been  disturbed  by  two 
revolutions  and  these  have  necessarily  brought  a  strain  upon 
our  relations  because  of  the  losses  sustained  by  American  citi- 
zens, both  in  property  and  in  life,  due  to  the  lawlessness  which 
could  not  be  prevented  under  conditions  of  civil  war.  The 
pressure  for  intervention  at  times  has  been  great,  and  grounds 
upon  which,  it  is  said,  we  might  have  intervened  have  been 
urged  upon  us,  but  this  administration  has  been  conscious  that 
one  hostile  step  in  intetrvention  and  the  passing  of  the  border 
by  one  regiment  of  troops  would  mean  war  with  Mexico,  the 
expenditure  of  hundreds  of  millions  of  dollars,  the  loss  of 
thousands  of  lives  in  the  tranquilization  of  that  country,  with 
all  the  subsequent  problems  that  would  arise  as  to  its  disposition 
after  we   found   ourselves   in   complete   armed  possession. 

In  order  to  avoid  the  plain  consequences,  it  seemed  the  course 
of  patriotism  and  of  wisdom  to  subject  ourselves  and  our  citi- 
zens to  some  degree  of  suffering  and  inconvenience,  and  to  pass 
over  with  a  strong  protest  and  a  claim  for  damages  even  those 
injuries  inflicted  on  our  peaceful  citizens  in  our  own  territory 
along  the  border  by  flying  bullets  in  engagements  between  the 
governmental  and  the  revolutionary  forces  on  the  Mexican  side. 
It  is  easy  to  arouse  popular  indignation  over  an  instance  of 
this  character.  It  is  easy  to  take  advantage  of  it  for  the  pur- 
pose of  justifying  aggressive  action,  and  it  is  easy  to  cultivate 
political  support  and  popularity  by  a  warlike  and  truculent  policy, 


366  WAR  DEPARTMENT. 

but  with  the  familarity  that  we  have  had  in  the  carrying  on 
of  such  a  war  in  the  Philippines  and  in  Cuba,  no  one  with  a 
sense  of  responsibility  to  the  American  people  would  involve 
them  in  the  almost  unending  burden  and  thankless  task  of  en- 
forcing peace  upon  these  15,000,000  of  people  fighting  among 
themselves,  when  they  would  necessarily  all  turn  against  us  at 
the  first  manifestation  of  our  purpose  to  intervene.  I  am  very 
sure  that  the  course  of  self-restraint  that  the  administration  has 
pursued  in  respect  to  Mexico  will  vindicate  itself  in  the  pages  of 
history. 


Co-operation  in  Affairs  of  the  Daily  Liife  of  the  People. 

One  feature  of  the  work  of  the  Army  in  recent  years  has  been 
for  develoinent  along  the  lines  coining  closer  to  the  interests  of  the 
people  in  emergencies  arising  in  civil  life,  and  this  has  been 
especially  notable  in  the  work  performed  in  relief  work,  fighting 
forest  fires,  relief  of  flood  sufferers  and  the  development  of  a  sys- 
tem for  the  prevention  of  typhoid  fever  through  inoculation  and 
the  sanitation  of  the  Panama  Canal  Zone. 

Fighting  Forest  Fires — During  August  and  September,  1910. 
troops  of  the  Regular  Army  rendered  valuable  and  efficient 
service  in  fighting  forest  fires  in  the  Northwest.  On  August 
5th  the  president  of  the  Western  Forestry  and  Conservation 
Association,  representing  the  States  of  Montana,  Idaho,  Wash- 
ington and  California,  telegraphed  the  President  that  very 
destructive  forest  fires  were  raging  in  the  national  forests  of 
those  States,  threatening,  unless  checked,  to  destroy  millions 
of  dollars  of  property  and  endanger  the  lives  of  citizens,  and 
requested  that  the  federal  troops  located  in  those  States  be 
at  once  rushed  to  the  scene  of  the  conflagration  to  co-operate 
with  the  Forest  Service  in  checking  and  preventing  the 
destruction  of  the  property  of  the  Nation.  The  President 
directed  that  orders  be  issued  to  the  proper  military  authori- 
ties to  render  all  possible  aid  in  suppressing  the  fires,  and 
instructions  to  that  effect  were  immediately  given  to  the  com- 
manding generals  of  the  military  departments  concerned. 

At  that  time  most  of  the  troops  stationed  in  that  section  of 
the  United  States  were  concentrated  in  camps  of  instruction. 
The  fires  increased  so  rapidly  and  became  so  menacing  to  life 
and  property  in  the  small  towns  in  Montana,  Idaho,  Washington 
and  Oregon,  and  to  the  forest  reserves,  that  practically  all  of 
the  troops  at  the  camp  of  instruction  at  American  Lake,  Wash- 
ington, were  withdrawn  and  with  other  troops  were  sent  to 
various  points  in  the  States  affected,  over  2000  officers  and 
enlisted  men  being  engaged  in  the  work  of  assisting  the  Forest 
Service  in  fighting  and  extinguishing  the  fires.  The  fires  would 
break  out  afresh  after  it  was  thought  they  were  under  control, 
and  it  was  not  until  September  19,  1910,  that  the  last  troops 
were  reported  to  have  returned  to  their  stations. 

The  Secretary  of  Agriculture,  in  transmitting  the  thanks  of 
his  department  for  the  assistance  rendered,  commended  in  highest 
terms  the  splendid  discipline  and  efficiency  displayed  by  the 
troops  under  the  many  difficulties  and  great  discomforts  encoun- 
tered by  them  in  this  work. 

Relief  of  Flood  Sufferers — Early  in  the  spring  of  the  present 
year  disastrous  floods  arose  in  the  Mississippi  River  and  its 
tributaries,  the  water  reaching  the  highest  level  ever  recorded. 
and  even  now  it  has  not  entirely  subsided.  The  President  imme- 
diately ordered  that  the  supplies  of  the  Army  be  drawn  upon  for 
the  relief  of  those  whose  homes  had  been  devastated,  and  food, 
shelter,  medicine,  forage  for  horses  and  cattle,  transportation, 
etc.,  were  quickly  supplied  for  the  immediate  relief  of  the  appall- 
ing distress  created  and  threatened  by  this  disaster. 

Officers  of  the  Quartermaster,  Engineer,  Subsistence  and  Medi- 
cal Departments  were  sent  to  the  flooded  districts  and  placed 
in  charge  of  the  relief  work,  and  will  carry  it  forward  until 
improved  conditions  have  reached  a  point  where  it  can  safely 
be  left  in  the  hands  of  the  local  authorities. 

In  the  work  of  supplying  relief  to  the  thousands  of  destitute 
persons  in  the  flooded  regions  and  in  protecting  the  levees  against 
impending  floods,  it  is  estimated  that  the  expenditures  of   the 


WAR  DEPARTMENT.  H67 

War  Department  agencies  will  reach  a  total  of  a  million  and  a 
quarter  dollars. 

Many  new  facts  have  been  disclosed  by  the  flood,  and  the 
Department,  in  co-operation  with  the  Department  of  Hie  interior, 
is  making  a  careful  study  of  them  with  a  view  to  determine  the 
proper  measures  to  be  taken  for  preventing  flood  losses  in  the 
future  and  controlling  the  river  for  navigation. 

In  a  letter  of  May  24,  1912,  to  the  Secretary  of  War,  the 
Citizen's  Relief  Committee  of  Memphis,  Tenn.,  gives  great  credit 
to  the  army  officers  engaged  upon  the  relief  work  in  that  district 
for  their  valuable  and  untiring  efforts. 

Typhoid  Prophylaxis. — One  of  the  most  striking  achievements 
which  has  ever  been  accomplished  by  the  Medical  ( forps  of  the  Army 
is  the  demonstration  made  last  year  of  the  value  of  the  typhoid 
prophylaxis,  in  this  particular  branch  of  preventive  medicine  the 
physicians  of  the  Regular  Army  are  leading  the  progress  of  the 
medical  world,  and  it  is  believed  that  the  value  of  this  phase  of 
their  work  will  equal  that  of  their  discovery  of  the  cause  and 
method  of  prevention  of  yellow  fever.  Experiments  in  the  use  of  an 
antityphoid  serum  have  been  made  in  various  countries  for  a  nuin- 
ber  of  years.  Our  own  officers  have  been  at  work  on  the  develop- 
ment and  improvement  of  this  method  for  several  years,  but  prior 
to  March  9,  1911,  all  persons  submitting  to  treatment  in  the  Army 
were  volunteers.  As  soon  as  the  orders  for  the  recent  mobiliza- 
tion in  Texas  were  issued,  instructions  were  given  that  all  troops 
participating  should  receive .  the  prophylactic  treatment.  The 
results  of  this  measure  were  remarkable,  and  may  be  regarded 
as  conclusively  demonstrating  the  effectiveness  of  this  remedy 
as  a  protection  against  typhoid  fever.  During  the  mobilization 
about  1(5,000  men  were  concentrated  in  military  camps  in  the 
country,  certain  portions  of  which  were  distinctly  infected  with 
typhoid  fever.  During  the  first  four  months  of  the  encampment, 
41)  cases  of  typhoid  occurred  among  the  city  population  of  San 
Antonio  and  192  in  Galveston.  In  the  Army  camps  typhoid  fever 
was  practically  absent,  there  being  only  three  cases  in  all  of 
the  camps — two  in  San  Antonio  and  one  in  San  Diego.  One  of 
these  cases  was  of  a  teamster  who  had  evaded  the  inoculation. 
Not  a  single  case  occurred  at  Galveston  nor  at  the  numerous 
camps  along  the  Mexican  border. 

The  value  of  the  typhoid  prophylaxis  and  the  immense  advan- 
tages in  camp  sanitation  with  reference  to  typhoid  fever  can  be 
best  grasped  by  comparing  the  prevalence  of  the  disease  among 
the  troops  of  the  maneuver  division  at  San  Antonio  and  those 
of  the  Second  Division  of  the  Seventh  Army  Corps  assembled  at 
Jacksonville,  Fla.,  during  the  Spanish  War.  This  latter  division 
was  not  particularly  unfortunate  in  its  record  for  that  time,  and 
is  selected  because  of  the  close  similarity  of  its  conditions  of 
service  to  those  of  the  maneuver  division  at  San  Antonio.  The 
two  divisions  were  encamped  in  nearly  the  same  latitude  and  for 
about  the  same  length  of  time,  and  each  had  a  good  camp  site 
and  a  good  water  supply  of  unimpeachable  purity.  While  the 
period  in  camp  of  the  second  division  at  Jacksonville  was  rather 
later  In  the  year,  the  number  of  men  involved  in  the  division  at 
San  Antonio  was  larger.  With  an  average  strength  of  10,759 
men  in  the  division  at  Jacksonville,  Fla.,  in  1898,  there  were 
2<ii).'{  cases  of  typhoid  fever,  certain  and  probable,  with  248  deaths. 
The  average  strength  of  the  division  at  San  Antonio  in  1911  was 
12,801.  Among  this  number  there  were  but  two  cases  of  typhoid 
fever,  and  no  deaths  from  that  cause. 

SANITATION — PANAMA    CANAL    ZONK. 

The  tremendous  and  important  results  in  sanitation  accom- 
plished in  the  Canal  Zone  under  the  direction  of  Col.  W.  C. 
Gorgas,  of  the  Medical  Corps  of  the  Army,  have  been  graphically 
stated  by  Dr.  William  Osier,  formerly  of  Johns  IIopkiMs  Uni- 
versity, now  regius  professor  Of  medicine  in  Oxford  University, 
in    the   following    language: 

Read  the  story  of  yellow  fever  in  Havana  and  in  Brazil  if  you 
wish  to  get  an  idea  of  the  powers  of  experimental  medicin.  ; 
there  is  nothing  to  match  it  in  the  history  of  human  achievement. 
Before   our   eyes    to-day   the   most   striking   experiment   ever   made 


368  ^AR  DEPARTMENT. 

in  sanitation  is  in  progress.  The  digging  of  the  Panama  Canal 
was  acknowledged  to  be  a  question  of  the  health  of  the  workers. 
For  four  centuries  the  isthmus  bad  been  a  white  man's  grave,  and 
at  one  time  during  the  French  control  of  the  canal  the  mortality 
reached  the  appalling  figures  of  170  per  thousand.  Even  under  the 
most  favorable  circumstances  it  was  extraordinarily  high.  Month 
by  month  I  get  the  reports,  which  form  by  far  the  most  interest- 
ing sanitary  reading  of  the  present  day.  Of  more  than  54,000 
employes  (about  13,000  of  whom  are  white)  the  death  rate  per 
thousand  for  the  month  of  March  was  8.91,  a  lower  percentage,  I 
believe,  than  in  any  city  in  the  United  Kingdom,  and  very  much 
lower  than  in  any  city  in  the  United  States.  It  has  been  brought 
about  in  great  part  by  researches  into  the  life  history  of  the 
parasite  which  produces  malaria,  and  by  the  effective  measures 
taken  for  its  destruction.  Here  again  is  a  chapter  in  human 
achievement  for  which  it  would  be  hard  to  find  a  parallel.  But 
let  us  not  forget  that  these  are  but  illustrations  of  widespread 
possibilities   of   organization   on   modern    lines. 

The  death  rate  given  above  of  8.91  was  the  annual  average 
per  thousand  of  deaths  among  employees  for  the  month  of  Feb- 
ruary instead  of  March,  as  stated,  and  was  for  all  causes,  external 
causes  as  well  as  disease.  This  rate  was  published  in  the  March 
report,  the  figures  relating  to  the  number  of  employees  being 
compiled  from  the  pay  rolls  of  the  preceding  month.  The  March 
report  also  shows  that  the  total  number  of  employees,  on  the 
pay  rolls  during  the  month  of  February  was  51,119,  instead  of 
"more  than  54,000."  In  the  same  report  the  death  rate  per  thou- 
sand for  the  entire  population — 147,962,  including  employees  and 
the  civil  population — of  the  Canal  Zone  and  the  cities  of  Panama 
and  Colon  is  given  as  18.33.  This  figure  compares  favorably 
with  the  death  rate  of  some  cities  of  the  United  States  of  over 
100,000  inhabitants. 

To  recapitulate,  during  the  epidemic  of  1904  to  1905,  there  were 
246  cases  of  yellow  fever  and  84  deaths ;  133  cases  and  35  deaths 
were  of  employees.  It  is  safe  to  say  that  if  American  methods 
of  controlling  the  disease  had  not  been  put  into  effect,  there  would 
have  been  a  great  epidemic  during  the  time  above  specified,  but 
the  disease  was  practically  held  in  check  from  the  beginning. 

While  the  records  during  the  French  regime^  are  not  complete, 
it  is  known  that  from  1881  to  1889  there  were  1200  deaths  from 
yellow  fever  in  Ancon  Hospital  alone. 

Similar  methods  to  those  employed  in  yellow  fever  suppression 
have  been  used  in  the  Canal  Zone  for  the  destruction  of  the 
mosquito,  the  anopheles,  which  carries  the  malaria  germ,  and  the 
following  table,  showing  the  rate  of  admission  to  hospitals  of 
malaria  cases,  gives  an  idea  of  the  improved  conditions  as  regards 
this  disease  now  obtaining: 

Per  1000.  Per  1000. 

1904 ' 125  1908 :..  282 

1905 514  1909 215 

1906 821  1910 187 

1907 424  1911 184 


THE   DEPARTMENT  OF  JUSTICE. 

The  activities  of  the  Department  of  Justice  have  been  a 
marked  feature  of  President  Taft's  Administration.  His 
respect  for  law  and  desire  that  it  be  fairly  and  fearlessly 
administered  and  enforced  has  been  reflected  by  marked 
activity  on  the  part  of  this  department.  Its  work  in  the 
enforcement  of  law,  regulating  and  controlling  corporations, 
is  fully  presented  in  the  chapter  entitled  "Control  of  Corpora- 
tions," which  will  be  found  by  reference  to  the  index.  Other 
features  of  the  work  of  the  department  are  shown  below: 

The  Bureau  of  Investigation. 

Under  date  of  the  16th  of  March,  1909 — within  a  few  days 
after  the  inauguration  of  President  Taft — there  was  organized, 
in  the  Department  of  Justice,  a  Bureau  for  the  purpose  of 
enabling  the  Attorney  General  to  gather  evidence  as  to  vio- 


DEPARTMENT  OF  JUSTICE.  369 

latio/is  of  the  laws  of  the  United  States  and  to  prosecute  such 
violations  in  a  vigorous  and  systematic  manner. 

Prior  to  that  time,  this  important  department  of  the  Fed- 
eral Government  had  never  had  under  its  control  an  effective 
organization  of  this  character,  and  consequently  it  had  been 
impossible  for  it  to  secure  that  prompt  and  thorough  investi- 
gation which  is  so  essential  to  the  proper  enforcement  of  the 
anti-trust  laws,  the  national  banking  laws,  the  laws  with 
reference  to  bankruptcy  frauds,  land  frauds,  mail  frauds,  the 
peonage  and  bucket-shop  laws,  the  neutrality  laws  and  the 
many  other  Federal  statutes  which  it  is  the  duty  of  the 
Department  of  Justice  to  enforce. 

This  need  was  promptly  recognized  by  President  Taft,  and 
upon  entering  upon  his  duties,  measures  were  taken  to  put 
the  Department  of  Justice  in  a  position  where  it  could  enforce 
the  Federal  laws  more  effectively  than  ever  before.  While 
during  former  administrations  much  information  reached  the 
department  indicating  violations  of  the  law,  and  many  differ- 
ent complaints  were  received,  it  was  impossible,  under  the 
arrangement  that  existed  at  that  time,  to  have  these  com- 
plaints quickly  and  thoroughly  investigated  and  proper  civil 
or  criminal  proceedings  promptly  instituted.  The  deficiency 
in  this  respect  was  particularly  noticeable  in  connection  with 
violations  of  the  anti-trust  laws  and  the  national  banking 
laws  and  bankruptcy  fraud  laws,  in  the  enforcement  of  which 
statutes,  millions  of  people  throughout  the  country  are  vitally 
interested,  and,  as  a  result  of  this  lack  of  proper  facilities,  it 
must  be  admitted  that  these  laws  were  not  properly  enforced. 

Immediately  upon  the  organization  of  this  investigation 
service,  however,  the  practice  was  inaugurated  of  instituting 
at  once  thorough  investigations  of  complaints,  and  information 
reaching  this  department  which  indicated  a  violation  of  any 
of  the  laws  above  mentioned,  regardless  of  the  standing 
financially  or  otherwise  of  the  corporation  or  individual 
involved,  and  of  instituting  without  partiality  criminal 
or  civil  proceedings  in  all  cases  where  it  appeared  that 
the  law  had  been  violated.  The  organization  of  this  investi- 
gation service  and  the  institution  of  this  policy  of  thorough 
investigation  and  punishment  of  all  crimes  and  offenses  of  the 
character  mentioned  has  resulted  in  a  more  vigorous  enforce- 
ment of  the  law  than  has  ever  been  accomplished  by  any  pre- 
vious administration. 

WHITE    SLAVE    INVESTIGATIONS. 

During  the  early  part  of  the  present  Administration  Con- 
gress enacted  (under  date  of  June  25,  1910)  what  is  known 
as  the  White  Slave  Traffic  Act,  the  purpose  of  which  is  to 
prevent  the  traffic  in  girls  and  women  between  the  different 
States,  and  also  between  this  country  and  foreign  countries, 
for  the  purpose  of  prostitution  and  other  immoral  practices. 
The  enforcement  of  that  portion  of  this  act  relating  to  inter- 
state traffic  devolved  upon  the  Department  of  Justice,  and 
promptly  after  the  enactment  of  this  law  the  Investigation 
Bureau  of  that  department  began  a  series  of  careful  investi- 
gations for  the  purpose  of  collecting  evidence  as  to  violations 
thereof.  It  soon  became  apparent  that  this  traffic  was  very 
rapidly  extending  throughout  almost  every  section  of  the 
country  and  that  vigorous  measures  were  necessary  in  order 
to  suppress  it  and  to  bring  to  justice  those  persons,  including 
both  men  and  women,  who  were  engaged  in  it. 

This  investigation  speedily  resulted  not  only  in  the  con- 
viction and  the  confinement  in  jails  and  penitentiaries  of 
numerous  persons,  but  the  work  disclosed  facts  and  conditions 
of  a  most  horrible  nature,  which,  if  allowed  to  continue,  would 
prove  to  be  a  disgrace  to  the  Nation.  As  soon  as  the  real  con- 
dition of  affairs  came  to  the  attention  of  the  Attorney  General 
and  the  President  directions  were  given  to  push  these  investi- 
gations with  the  utmost  vigor,  and  in  accordance  with  these 
instructions  the  work  was  extended  and  the  number,  of  con- 
victions increased.  This  work  progressed  with  extremely  satis- 
factory results,   including  the  conviction  not  only  of  isolated 


370  DEPARTMENT  OP  JUSTICE. 

individuals  who  were  engaged  in  the  procuring  and  transporta- 
tion from  State  to  State  of  young  girls  and  women  for  the 
purpose  of  prostitution  and  the  consequent  financial  gain  to 
themselves,  but  it  also  resulted,  during  the  summer  of  1911, 
in  the  conviction  of  persons  in  New  York  City  who  were 
engaged  systematically  in  the  business  of  supplying  to  houses 
of  prostitution  girls  and  women  throughout  a  large  portion 
of  the  eastern  part  of  the  United  States  and  whose  operations 
extended  as  far  west  as  Texas. 

Almost  immediately  after  the  conviction  of  these  traffickers, 
and  at  a  time  when  the  marked  success  of  the  operations  of 
the  department  along  this  line  seemed  to  call  for  an  extension 
of  its  activities,  and  when  the  results  already  accomplished 
seemed  to  indicate  that  by  extending  this  work  and  increasing 
the  vigor  of  its  investigations  and  prosecutions  it  would  be 
possible  within  a  reasonable  time  to  practically  destroy  this 
infamous  traffic,  it  was  found  that,  on  account  of  a  shortage 
in  the  funds  under  the  appropriation  from  which  the  cost  of 
these  investigations  must  be  paid,  it  would  be  necessary  either 
to  secure  a  deficiency  appropriation  or  to  curtail  the  work  of 
the  department  in  this  direction.  Accordingly,  a  request  was 
made  upon  Congress  for  an  additional  appropriation  for  this 
purpose.  Congress  has,  however,  utterly  failed  to  provide 
any  additional  money  for  this  purpose,  and,  as  a  result,  it  has 
been  necessary  for  the  Department  of  Justice  to  curtail  its 
efforts  for  the  suppression  of  this  traffic,  and  it  now  finds  its 
hands  practically  tied,  and  is  unable  to  properly  push  its 
investigations  and  prosecutions  of  the  multitude  of  criminals 
who  are  engaged  in  this  nefarious  traffic. 

This  condition  is  especially  deplorable,  because  of  the  fact 
that  the  department  is  daily  in  receipt  of  information  which 
indicates  that  hundreds  of  violations  of  this  law  (many  of 
such  violations  being  of  the  most  flagrant'  and  outrageous 
character)  are  being  committed  in  almost  every  section  of 
this  country. 

It  is  for  the  people  to  judge  and  to  say  whether  or  not  the 
party  which  is  responsible  for  thus  tying  the  hands  of  the 
Government  under  the  pretext  of  economy  by  reason  of  their 
control  of  the  House  of  Representatives  shall  be  entrusted 
with  added  responsibility  and  power  with  reference  to  the 
control  of  the  affairs  of  the  country. 

Public  Lands  Division. 

On  November  16,  1909,  the  Attorney  General  created  in 
the  Department  of  Justice  the  Public  Lands  Division,  which 
is  in  charge  of  one  of  the  Assistant  Attorneys  General. 

The  work  of  this  division  comprehends  the  supervision  of 
all  suits  and  proceedings  concerning  the  enforcement  of  public 
land  laws,  and  includes  suits  whether  they  be  civil  or  criminal, 
or  whether  the  land  be  open  to  entry  under  the  general  land 
laws  or  reserved  for  public  purposes,  or  lands  devoted  to  the 
uses  of  tribal  or  individual  Indians,  including  actions  to 
recover  rents  or  royalties.  For  many  years  there  was  a  growing 
tendency  to  ignore  the  laws  relating  to  the  public  domain,  and 
they  were  violated  with  impunity.  In  fact  this  practice  had 
grown  to  such  an  extent  and  had  been  so  long  in  vogue  that 
the  statutes  relating  to  the  entry  and  settlement  of  public 
lands  had  by  many  come  to  be  regarded  as  a  dead  letter.  The 
land  laws  of  the  United  States  have  been  in  force  for  many 
years,  and  the  penalties  attached  for  their  violation  are  quite 
severe,  yet,  as  has  been  stated,  they  were  most  systematically 
violated  in  different  parts  of  the  country,  and  it  is  probable 
that  their  lax  enforcement  has  been  the  result  of  a  public 
sentiment  which  made  prosecution  of  the  violators  very 
unpopular.  The  present  administration  has  waged  a  vigor- 
ous campaign  against  the  land-fraud  perpetrators,  and  many 
6f  the  suits  rrought  have  terminated  most  satisfactorily  to 
the  Government.  In  faot,  the  success  of  the  crusade  against 
the  wholesale  land  ffauds  has  exceeded  the  expectations  of  the 
mdSi  efltnusla's'tid. 

Oh  June  36,  1909,  there  were  pending  civil  suits,  of  the 


DEPARTMENT  OF  JUSTICE.  371 

various  classes  above  set  forth,  excluding  Indian  cases,  seeking 
recovery  of  3,122,489  acres  of  land,  valued  at  over  $51,000,000, 
and  involving  $579,931.82  in  damages  for  trespasses;  also  a 
large  number  of  criminal  cases.  During  the  last  two  and  a 
half  years  1083  civil  suits,  involving  1,150,229  acres  of  land, 
valued  at  $3,500,000  and  $6,306,970.69  in  damages  for  tres- 
passes, have  been  instituted;  also  474  criminal  cases,  so  that 
during  the  last  three  years  the  Public  Lands  Division  has 
handled  civil  cases  involving  4,272,718  acres  of  land,  valued 
at  $69,500,000  and  $6,886,902.51  in  damages  for  trespasses, 
excluding  criminal  cases,  of  which  there  was  a  large  number. 
During  this  period  677  civil  cases  have  been  disposed  of 
favorably  to  the  Government,  and  1,161,604  acres  of  land, 
valued  at  approximately  $4,500,000  and  $629,944.39  in  dam- 
ages and  costs  have  been  recovered.  During  the  same  period 
285  criminal  cases  have  been  determined  favorably  to  the 
Government  and  $132,838.34  in  fines,  penalties  and  costs  have 
been  recovered. 

The  suits  of  greatest  magnitude  now  pending  are  the  Oregon 
and  California  Railroad  Land  Grant  suits,  the  principal  one 
of  which  involves  approximately  2,300,000  acres,  valued  at 
$50,000,000.  The  other  forty-five  suits  which  were  brought 
against  the  purchasers  of  land  in  violation  of  the  restrictions 
imposed  by  the  granting  acts  involved  in  the  aggregate  390,000 
acres,  valued  at  $15,000,000.  'Demurrers  interposed  to  the 
Government's  main  suit  against  the  railroad  company  were 
overruled  and  the  Government  sustained  on  all  points  of  law. 
Answers  have  since  been  filed  by  the  defendants,  and  the  cases 
are  in  course  of  adjudication  on  their  merits. 


Indian  Cases. 

THE  FIVE   CIVILIZED   TEIBES. 

There  are  pending  over  300  civil  cases  involving  deeds  to 
lands  allotted  to  Indians  of  the  Five  Civilized  Tribes,  com- 
prehending over  24,000  deeds.  The  condition  among  the 
Seminole  tribes,  due  to  forged,  fraudulent  and  otherwise 
illegal  deeds,  mortgages,  leases  and  quit  claims,  by  means  of 
which  they  were  ruthlessly  deprived  of  their  lands,  was 
deplorable  in  the  extreme,  and  the  activities  of  the  Depart- 
ment have  been  vigorously  directed  against  the  perpetrators. 
Many  actions,  both  civil  and  criminal,  have  been  successfully 
prosecuted  by  the  Government  and  have  produced  a  most 
salutary  effect. 

THE   QUAPAWS,    SENECAS,   ET   AL. 

The  result  of  the  employment  of.  a  special  attorney  to 
prosecute  suits,  to  cancel  illegal  deeds,  mortgages  and  leases 
given  by  Quapaws,  Senecas,  Ottawas,  Modocs,  Peorias,  Wyan- 
dots  and  Eastern  Shawnees  has  been  to  terminate  the  attempts 
to  defraud  these  wards  of  the  Nation,  and  the  cancellation  of 
such  instruments  covering  many  thousands  of  acres  has  been 
effected  without  litigation. 

THE    KICKAPOOS. 

During  the  past  year  eighty-eight  cases,  involving  title  to 
13  5  Kickapoo  allotments,  aggregating  10,800  acres  of  land, 
valued  at  $540,000,  were  considered,  and  all  but  six  were  dis- 
posed of  favorably  to  the  Indians,  and  these  are  yet  to  be  adju- 
dicated. 

WHITE    EARTH    RESERVATION    FRAUDS. 

One  thousand  and  sixty-four  suits  have  been  instituted  by 
the  Government  for  the  recovery  of  lands  illegally  alienated 
by  the  Indians  of  the  White  Earth  Reservation  and  for  account- 
ing by  various  defendants  for  timber  cut  and  removed  from 
said  lands.  Stipulations  with  attorneys  representing  many 
of  the  defendants  have  been  filed  agreeing  to  the  appointment 
of  an  examiner,  and  in  many  of  the  cases  the  attorneys  for 
defendants  have  agreed  that  the  Government's^  case  in  chief 


372  DEPARTMENT  OF  JUSTICE. 

may  be  made  by  a  stipulation  of  facts,  and  it  is  highly  probable 
that  such  agreements  can  be  obtained  in  the  remaining  suits 
as  well.  The  Department  expects  that  all  of  these  cases  will 
be  disposed  of  before  the  close  of  the  fiscal  year  1912. 

Violations  of  the  Postal  liaws. 

Postal  frauds  and  violations  of  the  postal  laws  follow  next 
in  numerical  importance  to  the  revenue  violations.  The  postal 
system,  because  of  the  quasi  secret  manner  in  which  com- 
munications are  transported  and  delivered,  affords  almost 
unlimited  opportunity  for  violations  of  the  law  governing  the 
use  of  the  mails.  Some  of  the  principal  offenses  committed 
against  the  postal  system  have  been  the  sending  of  obscene 
literature,  the  operation  of  lottery  schemes  and  green  goods 
swindles,  and  other  get-rich-quick  schemes.  The  difficulty  of 
detecting  and  convicting  this  class  of  criminals  is  obvious. 
Nevertheless,  during  the  first  two  years  of  President  Taft's 
Administration,  the  Department  of  Justice  secured  convictions 
in  2418  cases,  as  against  1867  convictions  during  the  two 
years  immediately  preceding. 

Prosecution  of  Customs  Frauds. 

Upon  the  advent  of  the  present  Administration  there  were 
pending  860  customs  cases,  and  the  prosecution  of  these,  and 
the  cases  since  instituted,  has  formed  an  important  part  of 
the  work  of  this  Administration.  The  Herculean  task  of  seek- 
ing out  and  prosecuting  the  perpetrators  of  the  wholesale 
frauds  against  the  Customs  Service  has  resulted  in  phenomenal 
success. 

The  present  Administration  has  collected  in  actual  cash  in 
fines  and  back  duties  from  the  various  sugar  importers,  at  the 
Port  of  New  York,  as  follows: 

AMERICAN    SUGAR    REFINING    COMPANY. 

Penalties  and  black  duties   (underweighing)  .  .  .    $2,135,486.32 

ARBUCKLE    BROTHERS. 

Penalties  and  back  duties 695,573.19 

NATIONAL    SUGAR    REFINING    COMPANY. 

Back  duties  (drawbacks)    700,000.00 

Penalties  and  back  duties    604,304.37 


$4,135,363.88 


These  unprecedented  sums  have  actually  been  collected  in 
cash. 

Also,  in  connection  with  the  sugar  frauds,  ten  employes 
and  officers  of  the  Sugar  Company  have  been  convicted  and, 
in  most  cases,  imprisoned. 

All  of  these  men  have  been  imprisoned,  excepting  one,  who 
is  out  on  bail  pending  an  appeal. 

In  the  Customs  Service  two  head  district  weighers  and  four 
assistant  weighers  were  indicted,  tried  and  convicted  for  con- 
ducting a  systematic  fraud  on  the  revenue. 

Among  the  other  lines  of  importation  in  which  fraud  has 
been  discovered  and  prosecuted  the  most  important  was  that 
involving  a  'firm  of  dealers  in  art  objects,  who  were  found  to 
have  been  engaged  for  many  years  in  the  fraudulent  underval- 
uation of  works  of  art'  While  the  members  of  this  firm  were, 
with  one  exception,  Englishmen  resident  in  England,  they  were 
compelled  to  pay  $1,180,000  in  settlement  of  the  civil  penalties. 
They  came  to  this  country  and  pleaded  guilty  to  criminal  charges, 
upon  which  pleas  the  court  imposed  a  fine  of  $15,000  in  one 
case  and  $10,000  in  two  other  cases. 

Another  important  case  was  that  of  a  custom  house  broker  of 
a  very  large  business,  who  was  discovered  to  have  engaged  for 
a  long  time  in  fraudulent  importations  by  means  of  forged  ap- 


DEPARTMENT  OF  JUSTICE.  373 

praisement  orders.  He  fled  the  country,  but  was  extradited  from 
Italy,  brought  baek  to  this  country,  where  he  pleaded  guilty,  and 
was  sentenced  to  fifteen  months'  imprisonment. 

Over  one  hundred  importers  have  been  convicted  for  under- 
valuations, and  during  the  last  year  over  $2,000,000  have  been 
collected  in  cash  penalties  and  back  duties. 

During  the  last  two  years  445  persons  have  been  convicted  f<*r 
frauds  on  the  customs. 

Corporation  Tax  Law. 

Section  38  of  the  Payne-Tariff  Act  of  August  5,  1909,  pro- 
vides that  every  corporation,  joint  stock  company  or  association 
organized  for  profit,  having  a  capital  stock  represented  by  shares, 
shall  be  taxed  in  an  amount  equivalent  to  1  per  centum  upon  its 
entire  net  income  over  and  above  $5000  received  by  it  from  all 
sources,  with  certain  necessary  exceptions. 

The  constitutionality  of  this  act  was  attacked  in  various  suits 
which  were  argued  before  the  Supreme  Court  in  January,  1910, 
subsequently  restored  to  the  docket  for  reargument  before  the 
full  bench,  and  finally  argued  in  January,  1911,  resulting  in  the 
unanimous  decision  of  the  Supreme  Court,  fully  sustaining  the 
constitutionality  of  the  act  and  also  affirming  the  construction 
which  had  been  placed  by  the  Department  of  Justice  upon  the 
act  in  its  application  to  the  various  corporation  appellants. 

Prosecution  of  Census  Frauds. 

During  the  year  1910  the  Secretary  of  Commerce  and  Labor 
called  to  the  attention  of  the  Attorney  General  that  numerous 
frauds  had  been  perpetrated  in  taking  the  enumeration  for  the 
Thirteenth  Decennial  Census.  A  special  attorney  was  appointed 
for  the  purpose  of  investigating  and  prosecuting  these  frauds. 
The  investigation  resulted  in  the  discovery  of  wholesale  frauds 
in  a  number  of  places,  and  indictments  have  been  secured  against 
census  supervisors  and  enumerators  for  fraudulent  acts  in  con- 
nection with  the  census  returns. 

These  false  returns  involve  the  enumerations  of  Tacoma,  Se 
attle,  Spokane,  Walla  Walla,  Bellingham,  Hoquiam  and  Aber- 
deen, in  the  State  of  Washington ;  Missoula,  Havre  and  Billings, 
in  the  State  of  Montana ;  Portland,  Ore.,  and  Superior,  Wis.  In- 
dictments were  also  secured  for  frauds  at  Fort  Smith,  Ark. 
Three  of  the  four  persons  there  indicted  pleaded  guilty;  six 
pleaded  guilty  in  the  Montana  cases;  one  at  Walla  Walla,  Wash., 
and  one  at  Portland,  Ore.  Fines  were  imposed  in  all  of  these 
cases.  At  Portland,  Ore.,  an  indicted  enumerator  was  convicted, 
fined  and  sentenced  to  six  months  in  jail.  At  Seattle,  Wash., 
an  indicted  enumerator  pleaded  guilty  and  was  fined.  A  super- 
visor, two  special  agents  and  twenty-five  enumerators  were  in- 
dicted for  frauds  in  connection  with  the  census  of  Tacoma,  Wash., 
where  about  35,000  fictitious  names  were  entered  on  the  returns. 

The  Enforcement  of  the  Food  and  Drugs  Act. 

The  Food  and  Drugs  Act  of  June  30,  1906  (34  Stat.,  768),  be- 
came effective  January  1,  1907,  and  has  been  vigorously  enforced. 

More  than  one  thousand  food  and  drug  cases  have  been  suc- 
cessfully prosecuted  by  the  Department  of  Justice  during  the 
present  Administration.  Fines  amounting  to  $30,000  have  been 
imposed  against  defendants  in  criminal  cases,  and  decrees  of 
condemnation  and  forfeiture  have  been  taken  against  more  than 
five  hundred  shipments  of  adulterated  and  misbranded  foods  and 
drugs.  The  amount  of  the  fines  in  individual  cases  has  steadily 
increased  with  the  age  of  the  statute,  and  the  maximum  fine  is 
now  generally  imposed  for  first  offenses. 

Convictions  have  been  obtained  against  the  shippers  of  filthy 
egg  products,  olive  oil  heavily  adulterated  with  cotton-seed  oil, 
flavoring  extracts  containing  wood  alcohol,  short-weight  canned 
and  bottled  goods,  spices  adulterated  with  foreign  material, 
skimmed,  watered  and  filthy  milk,  etc. 

There   have    been    seized    and   destroyed    large   quantities    of 


374  DEPARTMENT  OP  JUSTICE. 

tomato  catsup,  tomato  pulp,  tomato  paste,  frozen  and  dessicated 
eggs  and  black  olives,  found  to  be  adulterated  because  they  con- 
sisted in  part  of  putrid  and  decomposed  substances.  Several 
shipments  of  ice  cream  cones  containing  boric  acid  have  also 
been  condemned  and  destroyed.  A  decree  of  destruction  was 
also  taken  against  a  shipment  of  coffee  coated  with  lead  chromate. 
There  have  been  seized  also  large  quantities  of  flour  bleached 
with  nitrogen  peroxide,  a  poisonous  substance,  and  canned  sar- 
dines reported  by  the  Department  of  Agriculture  to  be  filthy  or 
decomposed. 

Large  quantities  of  foodstuffs,  reported  by  the  Secretary  of 
Agriculture  to  contain  filthy  and  decomposed  material,  have  been 
destroyed,  while  in  a  very  considerable  number  of  cases,  where 
the  offense  against  the  statute  could  be  cured  by  relabeling,  con- 
signments of  foods  and  drugs  have  been  released  to  claimants  after 
relabeling,  on  the  furnishing  of  bonds  that  the  goods  would  not 
be  sold  or  otherwise  disposed  of  contrary  to  law. 

When  the  Supreme  Court  decided,  in  May,  1911,  that  the  Food 
and  Drugs  Act  was  not  broad  enough  to  cover  false  claims  as  to 
the  efficiency  of  medicines,  President  Taft  sent  a  vigorous  message 
to  Congress  urging  the  necessity  for  remedial  legislation.  Re- 
ferring to  the  decision,  the  President  said: 

"It  follows  that,  without  fear  of  punishment  under  the  law, 
unscrupulous  persons,  knowing  the  medicines  to  have  no  curative 
or  remedial  value  for  the  diseases  for  which  they  indicate  them, 
may  ship  in  interstate  commerce  medicines  composed  of  sub- 
stances possessing  any  slight  physiological  action  and  labeled  as 
cures  for  diseases  which,  in  the  present  state  of  science,  are 
recognized  as  incurable.  An  evil  which  menaces  the  general 
health  of  the  people  strikes  at  the  life  of  the  nation.  In  my 
opinion,  the  sale  of  dangerously  adulterated  drugs,  or  the  sale 
of  drugs  under  knowingly  false  claims  as  to  .their  effect  in  dis- 
ease, constitutes  such  an  evil  and  warrants  me  in  calling  the 
matter  to  the  attention  of  the  Congress." 

Reports  received  by  the  Department  of  Agriculture  from  its 
laboratories  in  different  sections  of  the  country  show  that  the 
successful  prosecutions  of  violators  of  the  Food  and  Drugs  Act 
have  produced  a  marked  improvement  in  the  sanitary  condi- 
tion of  factories  and  in  the  quality  of  foods  and  drugs  which 
are  shipped  in  interstate  commerce  in  this  country.  It  is  reported, 
for  example,  that  the  use  of  harmful  preservatives  in  foods  has 
been  largely  discontinued;  that  the  number  of  shipments  of  flour 
bleached  with  nitrogen  peroxide  has  been  considerably  reduced; 
that  mixtures  of  flour  are  properly  labeled,  so  as  to  inform 
customers  of  the  ingredients  of  the  mixture;  that  cheese 
made  from  skimmed  milk  is  labeled  as  such;  that  coffee  is  rio 
longer  adulterated  with  peas,  chicory,  cereals,  and  other  foreign 
material;  chocolate  and  cocoa  no  longer  contain  flour  and 
shells ;  that  spices  are  generally  free  from  inert  materials  hav- 
ing no  condimental  value;  that  flavoring  extracts  are  sold  for 
What  they  are;  that  mixtures  of  cane  syrup  flavored  with  maple 
are  no  longer  offered  for  sale  as  maple  syrup ;  that  cotton-seed 
oil  is  not  now  marketed  as  olive  oil ;  that  candy  manufacturers 
are  discontinuing  shellac  coatings ;  that  shipments  of  cheese  are 
correctly  branded  as  to  weight;  that  evaporated  milk  is  sold  as 
such  and  not  as  evaporated  cream;  that  domestic  wines  are  no 
longer  disguised  by  foreign  labels ;  that  foods  in  general  are 
practically  free  from  filthy  and  decomposed  substances;  that 
the  habit-forming  drugs  specified  in  the  act  are  indicated  on  the 
labels  of  medicinal  preparations,  and  that  the  quality  of  crude 
drugs  is  greatly  improved. 


National  Banking  Act  Enforced. 

During  the  past  three  years  there  have  been  more  than  two 
hundred  cases  of  alleged  violations  of  the  National  Banking  Laws 
investigated,  resulting  in  the  indictment  of  practically  every  of- 
fender where  the  evidence  showed  criminal  intent.  The  records 
show  that  those  indicted  have  been  speedily  brought  to  trial  and 
numerous  convictions  have  been  secured.     A  number  of  cases  are 


DEPARTMENT  OF  JUSTICE.  375 

now  pending  throughout  the  United  States  and  Alaska,  awaiting 
trial,  which  will  be  had  as  soon  as  they  can  be  reached  on  the 
docket,  while  still  other  cases  are  at  present  undergoing  a  thor- 
ough and  systematic  investigation,  as  it  is  the  policy  of  the  pres- 
ent Attorney  General  to  seek  out  and  vigorously  prosecute  these 
offenders  without  fear  or  favor. 

During  the  past  twelve  months  approximately  thirty  bank  of- 
ficials and  employes  have  been  actually  convicted  in  the  Federal 
Courts  under  the  National  Banking  Laws,  and  there  are  at  pres- 
ent twenty-five  such  criminals  in  confinement  in  the  Federal  Pen- 
itentiary at  Leavenworth,  Kans.,  fourteen  in  the  Federal  Peni- 
tentiary at  Atlanta,  three  in  the  Federal  Penitentiary  at  Mc- 
Neil's Island,  Wash.,  and  seven  in  other  prisons,  thus  making  a 
total  of  forty-nine  bank  officials  and  employes  at  present  serv- 
ing prison  sentences  in  expiation  of  their  crimes  against  society. 

The  stupendous  responsibility  devolving  upon  the  adminis- 
tration charged  with  the  duty  of  enforcing  the  National  Banking 
Act  and  conserving  the  interests  of  depositors  in  national  banks, 
is  readily  appreciated  when  consideration  is  given  to  the  fact 
that  the  aggregate  deposits  in  national  banks  by  individual  de- 
positors is  over  $5,< '30,000,000. 


POST  OFFICE  DEPARTMENT. 

When  President  Taft  was  Inaugurated,  he  was  confronted  with 
a  postal  deficit  of  nearly  $18,000,000,  which  was  inherited  from 
the  previous  Administration.  During  the  short  period  of  about 
two  years  this  enormous  deficit  has  been  eliminated  and  a/small 
surplus  established.  This  remarkable  condition  of  affairs  has  not 
been  brought  about  by  the  curtailment  of  postal  facilities,  but 
by  the  cutting  out  of  wasteful  expenditures  and  the  introduction 
of  up-to-date  business  methods.  The  policy  adhered  to  has  been  to 
extend  the  service  as  rapidly  as  warranted  by  increasing  popula- 
tion and  by  handling  in  a  more  systematic  and  businesslike  manner 
the  constantly  increasing  volume  of  mail.  The  number  of  com- 
plaints recorded  has  been  remarkably  low,  In  fact  proportionately 
lower  than  during  any  other  year. 

Important  extensions  have  been  made  in^very  branch  of  the 
service.  As  evidence  of  this,  there  have  been  established  3744  new 
post  offices,  delivery  by  carrier  has  been  provided  in  186  additional 
cities,  and  2516  new  rural  routes,  aggregating  60,679  miles,  have 
been  established.  During  this  time  the  force  of  postal  employes 
has  been  increased  by  over  8000.  In  compensating  employes  a  lib- 
eral policy  has  been  followed.  Last  year  the  total  amount  ex- 
pended for  salaries  was  approximately  $14,000,000  greater  than 
two  years  ago.  The  average  annual  salary  has  been  increased 
from  $869  to  $967  and  from  $979  to  $1082  for  post  office  clerks, 
from  $1021  to  $1084  for  city  letter  carriers  and  from  $1168  to  $1183 
for  railway  mail  clerks.  It  will  be  seen  that  extensions  of  the 
postal  service  and  the  compensation  of  its  employes  have  not  been 
overlooked  in  the  elimination  of  the  postal  deficit. 

The  disappearance  of  the  deficit  is  a  subject  of  gratification  to 
the  Administration,  since  it  is  the  first  time  that  such  a  condition 
has  existed  since  1883. 

At  the  beginning  of  the  Taft  Administration  there  was  found  in 
the  Post  Office  Department  a  complicated  and  unstandardized  sys- 
tem of  bookkeeping.  Every  Assistant  Postmaster  General  kept  his 
accounts  in  his  own  way  without  reference  to  his  colleagues  and 
the  rest  of  the  department.  This  made  checking  up  an  almost 
endless  labor  and  one  attended  with  great  expense.  Th«  Post- 
toaster  General,  after  a  thorough  study  of  the  situation,  intro- 
duced a  modern  double- en  try  system  of  accounts,  uniform  and 
standardized,  by  Which  the  department  is  now  for  the  first  time 
administered   as  a  unit  of  homogeneous  parts.     * 


376  POST  OFFICE  DEPARTMENT. 

This  reform,  briefly  summarized,  consisted  of — 

a.  A  record  of  all  postal-  and  money-order  fiscal  transactions, 
systematically  arranged. 

b.  The  gathering  of  all  financial  data  within  three  weeks 
from  the  end  of  each  quarter,  thus  informing  the  Postmaster 
General  as  to  whether  a  deficit  or  a  surplus  exists  for  that  period. 
Under  the  previous  system  this  information  was  not  obtainable 
until  about  the  time  the  following  quarter  was  beginning. 

c.  Complete  reports  as  to  their  cash  balances  from  all  post- 
masters who  make  deposits,  removing  the  temptation  to  keep 
unused  sums  on  hand,  and  making  it  possible  to  turn  into  the 
Treasury  for  postal  expenses  unduly  large  balances,  thus  making 
borrowing  unnecessary. 

d.  Assembling  of  daily  reports  of  money-order  transactions 
and  frequent  money-order  adjustments  between  offices,  instead  of 
waiting  until  the  end  of  the  quarter. 

e.  Close  co-operation  between  the  Treasury  Department, 
which  audits  postal  finance,  and  the  Post  Office  Department,  elim- 
inating a  vast  amount  of  duplication. 

As  a  result  of  these  changes,  the  department  is  to-day  financed 
from  current  receipts,  instead  of  by  grants  from  the  General 
Postal  Fund.  It  pays  as  it  goes,  and  at  any  time  it  can  be  found 
out  in  a  few  minutes  just  what  the  balance  is. 

While  a  new  system  of  compensation  to  railways  for  carrying 
mails  is  before  Congress  for  approval,  with  the  expectation  that 
it  will  save  $9,000,000  a  year,  action  has  been  taken  resulting  in  a 
saving  of  $2,000,000  a  year  on  this  item  by  taking  the  average 
weight  of  the  mails  for  seven  days,  including  Sunday,  instead  of 
basing  the  rate  of  compensation  on  the  average  of  the  amount  of 
mail  carried  by  the  roads  on  the  six  weekdays  formerly  set  apart 
for  the  weighing. 

The  shipping  of  certain  magazines  by  fast  freight,  instead  of  in 
mail  cars,  with  a  provision  for  classified  separation  at  certain 
interior  cities,  has  resulted  in  a  tremendous  saving.  It  also  gives 
the  railway  mail  clerks  more  time  and  space  in  which  to  handle 
first-class  mail,  facilitating  that  important  branch  of  the  service 
most  materially. 

Although  a  demand  for  a  postal-savings  system  has  existed  for 
many  years,  not  until  after  the  advent  of  the  Taft  Administration 
was  it  pushed  with  any  vigor.  By  persistent  effort  the  present 
Administration  finally  secured  the  passage  of  an  act  creating  such 
a  system  in  this  country  on  June  25,  1910.  Immediately  after  this 
action  had  been  taken  by  Congress,  efforts  were  made  to  put  the 
system  in  operation  with  the  greatest  possible  dispatch.  Without 
any  undue  flattery  it  can  be  said  that  the  system  as  operated  in 
this  country  at  the  present  time  is  the  most  up-to-date,  simple  and 
complete  system  operated  in  the  world.  In  devising  a  plan  for  its 
establishment  in  this  country  the  system  as  operated  by  the  many 
foreign  governments  was  considered,  and  by  so  doing  we  have  beau 
able  to  make  our  system  an  improvement  over  all  others. 

Although  the  act  creating  the  system  was  only  enacted  in  June, 
1910,  within  less  than  six  months  an  organization  had  been  per- 
fected and  experimental  offices  opened  in  every  State  and  Terri- 
tory. After  a  careful  test  of  four  months  at  these  offices,  the  sys- 
tem was  rapidly  extended,  and  at  the  present  time  is  being  oper- 
ated in  nearly  12,000  post  offices. 

The  deposits  have  kept  pace  with  the  extension  of  the  system. 
At  the  end  of  the  first  month  there  had  been  deposited  in  the  48 
experimental  offices  a  little  more  than  $60,000;  in  six  months 
they  were  increased  to  nearly  $700,000;  after  one  year's  opera- 
tion the  total  reached  $12,000,000,  and  on  July  1,  1912,  the  deposits 
reached  a  total  of  more  than  $20,000,000.  This  sum  has  been 
distributed  among  about  8000  national  and  state  banks,  where  it 
is  protected  by  bonds  deposited  with  the  Treasurer  of  the  United 
States. 

The  postal-savings  system  is  very  commonly  known  as  "the 
poor  man's  bank."  This  name  is  given  it  because  the  people  in 
the  habit  of  using  it  are  found  to  be  those  who  have  not  been  in 
the  habit  of  using  banks  at  all,  but  instead  have  hoarded  their 
money.  They  are  satisfied  to  make  use  of  (his  system,  bponuso 
the  faith  of  the  United  States  is  pledged  to  the  repayments  of 
its  deposits,  and  as  a  result  the  system  brings  into  circulation 


POST  OFTICE  DEPARTMENT.  377 

millions  of  hoarded  savings  and  encourages  thrift  to  a  far  greater 
degree  than  private  institutions  among  a  particular  class  of 
people.  The  operations  of  the  system  so  far  to  date  have  proved 
successful,  and  it  will  be  the  policy  of  the  Taft  Administration 
to  extend  its  facilities  to  practically  every  section  of  the  country. 

If  Congress  would  act  on  the  recommendation  of  the  Post 
Office  Department,  which  has  the  approval  of  President  Taft, 
authorizing  a  readjustment  of  railway  mail  pay,  it  would  result  in 
a  saving  of  not  less  than  $9,000,000  annually  to  the  Government. 
The  compensation  of  the  railways  for  carrying  the  mails  has  for 
some  time  been  a  problem  of  great  consequence  and  one  that  has 
caused  much  comment  on  the  part  of  the  American  people. 

During  the  early  days  of  the  Taft  Administration  there  was 
begun  a  thorough  investigation  of  the  situation,  with  a  view  of 
determining  just  what  it  costs  the  railways  to  carry  the  mails,  and 
whether  too  much  money  was  being  paid  by  the  Government  to 
them  for  the  services  rendered.  The  statistics  obtained  during 
this  investigation  disclosed  for  the  first  time  the  cost  of  carrying 
mail  in  comparison  with  the  revenue  derived  by  the  railways  from 
this  service.  The  Postmaster  General  showed  that  while  many  of 
the  railways,  and  particularly  the  larger  systems,  made  heavy 
profits  from  mail  transportation,  certain  of  the  lines  were  actually 
carrying  the  mails  at  a  loss. 

As  a  result  of  the  inquiry,  the  Department  urged  the  abandon- 
ment altogether  of  the  present  plan  of  fixing  such  compensation  on 
the  basis  of  the  weight  of  the  mails  carried,  a  plan  that  has  proved 
to  be  exceedingly  expensive  and,  in  many  respects,  unsatisfactory. 
In  substitution  for  this  method  a  plan  was  recommended  to  Con- 
gress by  which  the  compensation  should  be  determined  on  the  basis 
of  the  amount  of  space  required  in  cars  for  the  handling  of  the 
mails,  making  allowances  for  the  extent  and  frequency  of  the 
service  performed.  This  plan,  if  authorized  by  Congress,  would 
require  the  railway  companies  each  year  to  report  what  it  costs 
them  to  carry  the  mails,  and  such  other  information  as  would 
enable  the  department  to  determine  the  cost  of  mail  transporta- 
tion, this  cost  to  be  apportioned  on  the  basis  of  the  car  space 
provided  and  frequency  of  service  rendered,  and  payment  to  be 
allowed  at  the  rate  thus  determined  in  amounts  that  would 
cover  the  cost  and  6  per  cent,  profit. 

Should  a  railway  be  dissatisfied  with  the  manner  in  which 
the  department  apportioned  the  cost  of  fixing  compensation,  it 
would  have  an  opportunity,  under  the  proposed  plan,  of  appealing 
to  the  Interstate  Commerce  Commission. 

Since  the  Post  Office  Department  instituted  the  policy  of  put- 
ting in  jail  men  who  use  the  mails  to  defraud,  the  total  number 
of  arrests,  up  to  the  close  of  the  last  fiscal  year,  June  30th,  was 
1063,  and  the  amount  of  money  filched  by  these  criminals  from 
the  American  people  is  conservatively  estimated  at  more  than 
$120,000,000.  The  number  of  indictments  secured  is  1067.  Four 
hundred  and  fifty-two  persons  have  been  convicted  and  571  cases 
are  awaiting  trial. 

The  activities  of  the  swindlers  still  at  large  have  been  greatly 
diminished,  and  in  many  cases  have  ceased  entirely  through  their 
salutary  terror  of  the  law  and  by  reason  of  the  punishment  vis- 
ited upon  their  fellow-crooks.  When  it  was  only  a  fraud  order, 
forbidding  the  delivery  of  their  mail,  which  was  issued  against 
these  operators,  most  of  them  worried  but  little.  They  would 
change  their  names  and  addresses,  alter  the  title  of  their  "busi- 
nesses," and  continue  their  operations  until  the  next  fraud  order 
compelled  them  to  move  on  again.  But  in  no  case,  as  far  as  can 
be  learned,  has  a  person  convicted  on  a  criminal  charge  of  this 
nature  attempted  to  reorganize  under  a  new  name. 

With  the  order  to  post  office  inspectors  to  gather  evidence 
for  criminal  proceedings  with  the  aim  of  convicting  these  of- 
fenders, the  vigorous  work  of  that  most  efficient  body  of  men 
has  built  a  wall  of  protection  around  the  American  people. 

Investigations  have  developed  the  fact  that  these  fraud  ma- 
nipulators, whose  stock  in  trade  consists  usually  of  bogus  mines, 
fake  remedies  or  worthless  land,  with  a  flood  of  deceptive  circu- 
lars and  letters,  form  a  distinct  class  of  lawbreakers.  Among 
the  numerous  wealthy  offenders  who  have  been  caught,  convicted 
and  sent  to  jail  are  smug  criminals  who  have  posed  as  respect- 


378  POST  OFFICE  DEPARTMENT. 

able  citizens,  leaders  in  their  communities,  moving  in  the  highest 
social  and  business  circles.  In  many  instances  they  have  been 
millionaires,  enriched  by  plunder  from  those  who  could  least  af- 
ford to  lose  their  money. 

The  policy  of  first  crushing  out  these  powerful  criminals  has 
proved  exceedingly  effective  in  frightening  them  from  their  activ- 
ities and  eliminating  smaller  operators.  The  post  office  inspectors 
hare  important  regular  duties  in  connection  with  the  routine  of 
the  Post  Office  Department.  This  work  is  so  extensive  and 
exacting  that  it  should  occupy  all  of  their,  time.  Nevertheless, 
In  its  desire  to  protect  the  American  people  from  the  swarm  of 
plunderers,  the  department  has  determined  to  continue  this  most 
effective  engine  of  crime  detection  to  stamp  out  the  abuse  and  to 
punish  the  criminals,  so  that  they  will  not  further  prosecute 
their  fraudulent  designs.  In  view,  however,  of  the  need  for 
the  men  in  the  Postal  Inspection  Service,  and  of  the  large  ex- 
pense attendant  upon  the  criminal  investigations,  it  has  beea 
recommended  to  Congress  that  this  task  be  transferred  to  tht 
Department  of  Justice,  so  that  the  inspectors  may  devote  all  of 
their  time  and  energy  to  the  work  for  which  the  division  was 
originally  designed.  But  while  matters  stand  as  they  are,  the 
crusade  against  the  use  of  the  mails  for  purpose  of  fraud  will  be 
conducted  with  unabated  vigor. 

The  Taft  Administration  has  at  all  times  favored  the  estab- 
lishment of  a  domestic  parcel  post.  Just  as  the  Administration 
fought  for  a  postal-savings  system,  it  now  makes  a  similar  appeal 
on  Congress  for  appropriations  to  conduct  experiments  in  the  sev- 
eral branches  of  the  Postal  Service.  The  Postmaster  General  feels 
that  such  a  service  could  be  established  on  rural  routes  with  little 
additional  cost  to  the  Government.  The  equipment  necessary  for 
the  present  mail  deliveries  in  this  branch  of  the  service  is  sufficient 
for  the  transportation  of  packages  of  merchandise  with  little  or  no 
additional  expense.  The  limited  parcel  post  proposed  by  the  De- 
partment as  the  first  step  toward  a  general  establishment  involves 
no  difficult  problem  of  administration  and  will  enable  the  Govern- 
ment to  render  an  important  service  at  moderate  rates  to  many 
millions  of  people,  and  at  the  same  time  greatly  increase  the  pos- 
tal revenues. 

President  Taft  has  urgently  recommended  to  Congress  the 
adoption  of  the  necessary  legislation,  and  to  present  the  issue 
clearly  three  items  of  $50,000  each  were  included  in  the  estimates 
of  the  Post  Office  Department  by  the  Postmaster  General.  These 
amounts  were  asked  for  to  cover  the  initial  expense  of  introduc- 
ing a  parcel  post  on  the  rural  routes  and  in  the  city  delivery 
service,  respectively,  and  the  third  item  to  meet  the  cost  of  an 
investigation  looking  to  the  extension  of  the  service  to  the  rail- 
ways and  other  transportation  lines.  The  Postmaster  General 
is  of  the  opinion  that  if  Congress  will  grant  without  delay 
the  desired  authority,  and  provide  the  necessary  appropriations, 
a  parcel  post  can  be  organized  as  specified  and  put  in  full  opera- 
tion before  the  end  of  another  year.  By  so  doing,  the  way  will 
have  been  paved  for  the  final  step  in  the  organization  of  a  general 
parcel  post. 


THE  NAVY. 


The  largest  fleet  ever  assembled  in  America  was  gathered  at 
New  York,  at  the  end  of  October,  1911,  for  inspection  and  review. 
One  hundred  ships  of  war,  representing  our  new  navy,  manned  by 
more  than  26,000  officers  and  men,  were  inspected  and  reviewed 
by  the  President  and  Secretary  of  the  Navy,  and  at  the  close  of 
the  review  the  fleet  put  out  to  sea.  This  grand  gathering  of 
100  warships  of  our  own  navy  included  24  battleships,  2  armored 
cruisers,  2  cruisers,  22  destroyers,  16  torpedo  boats,  8  submarines 
and  4  gunboats.  The  full  strength  of  the  new  navy  is  shown  in 
the  following  table: 


Summary  of  Vessels 

NAVY  DEPARTMENT. 

in  the  United  States  Navy, 

June 

SO, 

372 
1911. 

Types. 

Pit  for  ser- 
vice, includ- 
ing those 
under 
repair. 

Under 
construc- 
tion. 

Author- 
ized. 

Unfit  for 
sea  ser- 
vice. 

Total. 

55 

Dis- 
place- 
ment. 

■2 
S 

p 

Dis- 
place- 
ment. 

E 
V 

■A 

Dis- 
place- 
ment. 

£ 

3 

Dis- 
place- 
ment. 

a 

Dis- 
place- 
ment. 

First-class  battleships- 
Second  -  class      battle- 

29 

Tons. 
406,146 

a 

Tons. 
149,650 

2 

Tons. 
55,000 

1 

Tons. 
6,315 

37 

1 
12 
4 
6 
20 
2 
3 
8 
1 
4 
8 
2 
1 
2 

9 

50 
32 

39 
8 
6 
6 

46 
4 

18 

26 
6 
1 
1 

8 

2 

10 

4 

Tons. 
610,798 

6,315 

12 
4 
6 

20 
2 
3 
7 

157,445 
12,900 
26,104 
96,674 

4,144 
11.250 

8,677 

157,445 

Single-turret  monitors— 
Double-turret  monitors- 
Protected   cruisers. 

— 



— 



— 



12,900 
26,104 
96,674 

Unprotected  cruisers 

Scout  cruisers 

-,- 



4,144 
11,250 

Gunboats    _    

i 

(*) 
(b) 
(b) 





c  8,677 

Gunboat  for  Gr.  Lakes 

(b) 

Light-draft    gunboats— 

3 
8 
2 
1 
2 

9 

33 
82 

18 
3 
3 
4 

44 
4 

18 

20 
5 
1 
1 

8 

2 
5. 
8 

4,155 
8,190 
3,600 

34  6 

C  4,155 

Composite   gunboats 

-- 



8,190 

Training  ships,   steel 

Training    brigantine.    _ 



3,600 
346 

Special  class 

2,416 

2,439 

2,416 

Gunboats  under  600 

6,678 
7,732 

s 

4 

"2 

8,251 



2,439 

Torpedo  -  boat  destroy- 
ers   J 

Steel  torpedo  boats 

19,099 
5,157 

3,748 
3,056 
5,565 
5,620 
f 15,713 

9 

17 

— 

34,028 
5,157 

Submarine  torpedo 
boats    

Iron   steam  vessels 

Wooden  steam  vessels. 
Wooden  sailing  vessels. 
Tugs    -    —        , 

(d) 
2~240 

"3 

2 

~~4~iio 

6,350 

e  11,480 
3,056 
9.705 
11,970 

f 17,933 

Auxiliary  cruisers 

24,959 
10,106 
e  150,462 
6,771 
4,083 
8,380 

24,959 

10,1^6 

Colliers 

2 

38,735 

4 
1 

76,264 
(b) 

— . 



g  265,461 

Submarine  tenders 

Mine-laying  ship. 

C  6,771 

4,083 

Repair    ship . 

3,380 

Transports  and  supply 
ships   _   _ 

44,384 

9,000 

23,408 

h  4,005 

44,384 

Hospital   ships 

Rocojving    ships.       _    . 



1 

~18~790 
1,100 

9,000 
42,198 

Prison    ships—       

h  5,105 

Total 

312 

1,083,002 

84 

202,795 

24 

141,755 

12 

36,695 

882 

1,464,247 

a  Used  as  a  target. 

b  Not  designed. 

c  Excepting  the  1  authorized. 


d  Contracts  not  signed. 

c  Excepting  the  4  authorized. 

f  Excepting  Locust. 


g  Excepting  Justin, 
h  Excepting  Southery. 


I 


Marksmanship. 

For  the  past  two  years  the  Navy  Department  has  been  making 
a  study  of  organization  and  the  economic  and  scientific  manage- 
ment of  the  resources  of  the  navy,  and  it  is  interesting  to  note  what 
the  naval  officer  has  accomplished  on  the  battleship  through  prac- 
ticing the  principles  of  scientific  management.  Experts  who  saw 
the  recent  battle  practice  say  the  battleship  is  the  finest  exhibition 
of  scientific  management  they  have  ever  seen. 

In  1898  the  percentage  of  hits  at  the  battle  of  Santiago  was 
3%  per  cent.  To-day  it  is  33  1/3,  although  the  range  has  in- 
creased from  3000  yards  to  10,000  yards.  The  rate  of  fire  then 
was  one  shot  in  five  minutes,  while  to-day  it  is  two  shots  in  one 
minute.  A  comparison  of  the  increased  rate  of  firing,  the  in- 
crease in  the  range,  and  the  percentage  of  hits  shows  that  we  are 
1200  times  better  to-day  than  we  were  at  Santiago.  This  has  been 
brought  about  by  better  appliances  and  by  systematic  study  of 
the  men  and  their  qualifications  and  the  recognition  of  the  ne- 
cessity of  placing  men,  after  a  careful  test,  in  duties  in  which 
they  do  the  best.  It  means  teamwork,  and  the  saving  of  min- 
utes, and  even  seconds,  where  in  the  industrial  world  it  is  a 
question  of  hours. 


380  NAVY  DEPARTMENT. 

About  ten  years  ago  a  system  of  competition  in  gunnery 
was  established  in  which  all  the  gun  pointers  and  gun  crews 
took  part.  Beneficial  results  were  instantaneous.  Having  trained 
and  developed  the  individual,  it  was  necessary  to  co-ordinate  the 
work  of  the  entire  gun  crew  in  order  to  bring  about  teamwork. 
With  this  accomplished,  the  speed  and  accuracy  of  firing  the 
guns  were  marvelously  increased  and  the  hitting  efficiency  raised 
to  a  standard  of  excellence  which  is  the  equal,  if  not  the  su- 
perior, of  any  navy  in  the  world.  The  experimental  firings  at 
the  "Katahdin"  and  "San  Marcos"  have  been  very  instructive 
in  the  matter  of  armor  and  have  furnished  information  of  value 
in  connection  with  the  design  of  later  vessels. 

The  remarkable  performance  made  by  the  battleship  "Dela- 
ware" shows  the  general  efficiency  of  personnel  material  of  the 
fleet  as  nothing  else  can.  The  "Delaware"  steamed  with  the  fleet 
from  Europe  to  Cuba,  and  was  then  ordered  to  Hampton  Roads 
to  take  the  remains  of  the  late  Chilean  Minister  back  to  Chile. 
This  trip  of  17,000  miles  to  Chile  and  return  followed  almost 
immediately  the  cruise  of  9000  miles  with  the  fleet  to  Europe 
and  return  via  the  West  Indies. 

The  only  way  to  appreciate  what  has  actually  been  done  by 
the  "Delaware"  and  by  her  officers  and  crew  is  to  compare  her 
achievements  with  the  cruise  of  the  "Oregon." 

The  "Delaware"  is  almost  twice  the  size  of  the  "Oregon,"  her 
displacement  being  20,000  tons,  while  that  of  the  "Oregon"  of 
the  Navy  was  10,286  tons.  When  they  doubled  the  size  of  our 
battleships,  they  nearly  trebled  the  horsepower  of  the  machinery. 
The  "Delaware's"  machinery  came  within  less  than  500  horse- 
power of  developing  30,000  horsepower,  while  that  of  the  "Oregon" 
was  designed  for  10,000.  This  is  the  power  that  each  vessel 
developed  at  full  speed,  which  in  the  case  of  the  "Delaware"  was 
21%  knots.  The  "Oregon's"  speed  was  somewhat  less  than  17 
knots.  But  on  the  long  cruises  each  of  these  vessels  have  steamed 
at  a  comparatively  low  rate,  largely  for  reasons  of  economy. 
The  "Delaware"  averaged  a  little  less  than  13  knots,  while  the 
average  speed  of  the  "Oregon"  was  about  11  knots. 

The  wonderful  development  in  naval  design  within  the  last 
thirteen  years  is  shown  nowhere  to  quite  so  great  an  extent  as 
when  the  batteries  of  the  ships  of  the  two  periods  are  compared. 
The  "Delaware"  carries  ten  monster  12-inch  guns.  The  "Oregon" 
carries  four  13-inch  guns.  The  "Delaware's"  guns  shoot  and  hit 
the  target  at  from  10,000  to  12,000  yards  (hits  have  been  regis- 
tered at  14,000  yards).  The  "Oregon's"  guns  could  not  be  relied 
upon  to  do  effective  firing  at  ranges  greater  than  5000  yards. 
The  guns  of  the  "Delaware"  can  usually  be  fired  at  the  rate  of 
two  shots  a  minute.  On  the  "Oregon,"  during  the  Spanish  War, 
we  were  doing  well  if  we  fired  each  of  her  four  guns  at  the  rate 
of  a  shot  in  2  2/3  minutes.  This  means  that,  so  far  as  the  guns 
are  concerned,  the  modern  battleship  fires  12%  times  as  many 
shells  as  the  "Oregon"  did,  and  hits  with  them  at  ranges  from 
two  to  three  times  as  great  as  those  ranges  that  were  effective 
only  thirteen  years  ago. 

With  it  all,  the  battleship  of  these  days  is  not  by  any  means 
so  expensive  in  proportion  to  its  power  as  were  the  battleships 
of  the  days  of  the  "Oregon."  On  the  cruise  that  the  "Delaware" 
recently  finished,  the  cost  of  coal  per  knot  run  was  less  than  70 
per  cent,  of  what  it  cost  to  drive  the  "Oregon"  on  her  famous 
trip.  On  the  "Delaware,"  thanks  to  improvements  in  operating 
methods  and  in  design  of  machinery,  they  made  over  13  miles 
per  gallon  of  oil.  On  the  "Oregon"  the  oil  consumption  was  less 
than  on  any  other  ship  of  her  time,  but  they  only  made  five 
miles  for  each  gallon  of  oil.  The  "Delaware's"  cost  for  oil  was 
less  than  30  per  cent,  of  that  for  the  "Oregon."  When  they 
doubled  the  size  of  the  "Oregon"  in  building  the  "Delaware,"  they 
made  no  corresponding  increase  in  the  cost  of  the  ship  to  the 
people.  The  "Oregon"  cost,  including  her  armor,  armament  and 
equipage,  over  $6,500,000.  The  "Delaware's"  gross  cost  was  less 
than  $7,800,000.  The  increase  was  about  18  per  cent.  The  cost 
per  ton  was  $639.10  in  the  case  of  the  "Oregon,"  and  $3S8.22  for 
the  "Delaware." 

The  expenditures  for  the  Navy  for  supplies  are  now  made 
along  the  lines  pursued  by  the  great  commercial  concerns.    The 


NAVY  DEPARTMENT.  381 

average  cost  of  a  ton  of  coal  to-day  is  much  less  than  it  was  in 
the  clays  of  189S.  There  have  been  changes  introduced  on  naval 
ships,  such  as  water-tube  boilers,  forced  lubrication  and  super- 
heated steam,  that  have  radically  improved  the  designs  of  the 
machinery  of  our  ships.  The  new  ships  have  comparatively  large 
machine  shops,  which  render  them  to  a  great  extent  self-sustain- 
ing and  independent  of  navy  yard  repairs. 

One  of  the  cbief  causes  of  great  expenditures  in  the  Navy  is 
the  excessive  number  of  navy  yards  on  the  Atlantic  Coast  and 
Gulf  of  Mexico.  We  have  on  the  Atlantic  Coast  nine  navy  yards, 
where  money  has  been  expended  lavishly  in  some  instances,  which 
would  not  have  been  the  case  if  the  strategic  and  economic  point 
of  view  only  had  been  considered. 

Last  year,  as  a  beginning,  the  Secretary  of  the  Navy  recom- 
mended to  Congress  that  the  yards  at  New  Orleans,  Pensacola, 
Port  Royal,  New  London,  Sackett's  Harbor,  San  Juan,  Culebra 
and  Cavite  be  abolished,  which  would  have  brought  about  a 
saving,  irrespective  of  the  price  which  the  Government  might 
have  obtained  for  these  properties,  of  an  annual  maintenance 
expense  of  $1,600,000.  Not  a  single  navy  yard  was  abolished  by 
Congress. 

Standing  of  the  United  States  Navy 

ON  DECEMBER  31,   1915,   WHEN   COMPARED   WITH    THE   NAVIES   OF  OTHER 

COUNTRIES,     WILL    BE    AS    FOLLOWS,     IN    CASE    OF    THE 

CONSTRUCTION  OF  TWO  BATTLESHLPS  A  YEAR. 

Capital  ships,  which  include  dreadnoughts  and  battle  cruisers: 

First  place,   England    52 

Second  place,  Germany   29 

Third  place,  Japan 21 

Fourth  place.  United  States    20 

Fifth  place,  France  19 

Should  we  fail  to  authorize  two  battleships  this  year  but 
authorize  them  every  year  bereafter,  the  United  States  will  drop 
to  fifth  place,  as  per  the  following  table: 

First  place,  England 52 

Second  place,  Germany   29 

Third  place,  Japan   21 

Fourth  place,  France   19 

Fifth  place,  United  States   18 

Battleships   are  cbeaper  than  battles. 

Battleships   stimulate  arbitration. 

A  strong  navy  is  the  cheapest  insurance. 

The  "Monroe  doctrine"  is  international  law  only  while  backed 
by  the  fleet. 

The  "open  door"  would  be  shut  in  the  face  of  a  nation  without 
a  navy. 

An  unprotected  canal  would  be  a  short  cut  from  the  Orient 
to  Washington. 

A  protected  canal  would  be  a  short  cut  from  Washington  to 
the  Orient. 

A  war  with  a  strong  European  power  would  cost  each  day 
as  much  as  the  navy  now  costs  in  five  years. 

Twelve-inch  guns  speak  louder  than  Hague  arbitrators. 

The  sea  is  a  highway  for  a  strong  navy — a  closed  path  to  a 
weak  one. 

Invasion  of  a  country  over-seas  cannot  be  effected  in  the  face 
of  a  strong  fleet. 

France  lost  India  because  her  seamen  could  not  defeat  the 
British  seamen. 

Cornwallis  surrendered  because  De  Grasse  was  in  the  Chesa- 
peake while  Howe  was  elsewhere. 

Spain  lost  Cuba  and  the  Philippines  as  soon  as  Cervera  and 
Montojo  were  overcome  by  Sampson  and  Dewey. 

Two  battleships  a  year  will  keen  tbe  United  Slates  superior; 
less  will  render  her  inferior  to   Japan. 


382  NAVY  DEPARTMENT. 

Does  the  United  States  wish  to  take  the  leavings  of  Japan, 
Russia,   England,   Germany  and  France  in  the   Orient? 

Does  the  United  States  wish  Brazil  to  become  a  European 
colony? 

Does  the  United   States  wish  Mexico  to  be  orientalized? 

Does  the  United  States  wish  to  lose  Hawaii  and  the  Philip- 
pines? 

Does  the  United  States  wish  the  /Caribbean  to  be  dotted  with 
fortified  foreign  coaling  stations? 

Does  the  United  States  wish  to  be  negligible  as  a  naval  power 
at  the  time  the  $375,000,000  Panama  Canal  is  opened? 

Does  not  the  United  States  wish  to  be  as  powerful  as  It  Is 
rich  ? 

Are  we  ready  to  arbitrate  if  some  foreign  power  should  seize 
Florida  or  California? 

How  shall  we  arbitrate  if  the  other  party  refuses? 


INTERIOR   DEPARTMENT. 

Work  of  the  General  Land  Office. 

During  the  past  four  years  the  greatest  attention  has  been 
given  to  the  amelioration  of  conditions  in  the  public  land  States. 
Every  effort  has  been  made  to  promote  bona  fide  settlement  and 
actual  development  of  the  public  domain,  and  to  relieve  the  home- 
steader and  other  public  land  claimants  from  irksome  and  un- 
necessary burdens.  At  the  same  time  it  has  been  the  policy  of 
the  General  Land  Office  also  to  check  speculation  in  public  lands, 
and  the  utmost  vigilance  has  been  maintained  to  prevent  the 
unlawful  acquirement  of  the  public  domain  either  by  corpora- 
tions or  individuals. 

On  the  recommendation  of  the  Commissioner  of  the  General 
Land  Office  and  the  Secretary  of  the  Interior,  legislation  was 
enacted  during  the  years  1910  and  1911  granting  extension  of 
time  for  the  establishment  of  residence  to  homesteaders  in  the 
States  of  North  Dakota,  South  Dakota,  Idaho,  Minnesota, 
Montana,  Nebraska,  Colorado,  Wyoming,  Oklahoma,  New  Mexico, 
Utah,  Arizona,  Oregon  and  Washington,  because  of  unusual 
climatic  conditions  and  other  circumstances  that  could  not  be  met 
under  the  general  laws  relating  to  the  public  domain.  This 
remedial  legislation  has  relieved  homesteaders  in  the  semi-arid 
regions  from  great  hardships  that  had  threatened  them  because 
of  drought  and  other  unforeseen  conditions.  There  was  also 
enacted  a  law  authorizing  homesteaders  who  had  in  good  faith 
taken  up  lands  but  had  subsequently  lost  the  same  through  no 
fault  of  their  own,  to  again  exercise  their  rights  under  the  home- 
stead and  desert  land  laws.  Under  the  general  homestead  and 
desert  land  laws  this  could  not  be  done.  This  law  has  been  very 
beneficial  to  the  honest  public  land  claimant  who,  through  un- 
foreseen circumstances  or  dire  need,  was  compelled  to  abandon 
his  land  after  he  had  taken  it  up.  The  act  at  the  same  time 
provides  that  this  privilege  is  not  to  be  exercised  when  it  is 
shown  that  the  person  seeking  relief  has  been  guilty  of  fraud 
in  connection  with  his  first  claim,  so  that  while  the  honest  home- 
steader is  afforded  an  additional  opportunity  to  acquire  a  home, 
at  the  same  time  the  speculator  is  estopped  from  availing  himself 
of  the  privilege  of  this  new  law. 

In  1909,  what  is  known  as  the  Enlarged  Homestead  Act  was 
passed  by  the  Republican  Congress.  This  act  affects  the  States 
of  Colorado,1  Montana,  Nevada,  Oregon,  Utah,  Washington, 
Wyoming,  Arizona  and  New  Mexico.  In  1910  the  provisions  of 
the  act  were  extended  to  the  State  of  Idaho  also.  This  act  pro- 
vides that  a  maximum  homestead  of  320  acres  may  be  made  on 
non-mineral,  non-timbered,  non-irrigable  public  lands  in  the  States 
named,  by  homestead  entrymen.  The  general  homestead  law 
fixes  the  maximum  at  160  acres.  It  is  further  provided  in  the 
new  act  that  homesteaders  who  have  already  taken  up  in  those 


INTERIOR  DEPARTMENT.  383 

States  the  ordinary  160  acres  homestead  may  take  an  additional 
160  acres  adjoining,  without  the  necessity  of  additional  residence 
and  cultivation  of  the  area  added,  as  the  residence  and  cultiva- 
tion on  the  original  160-acre  homestead  is  held  sufficient  for  the 
purposes  of  the  act.  As  it  is  apparent,  this  act  will  afford 
material  assistance  to  the  public  laud  claimants  in  the  States 
concerned  by  enabling  them  to  acquire  a  larger  area  for  dry 
farming,  the  maintenance  of  their  stock,  and  for  increased  culti- 
vation.    In  the  regulations  issued  under  this  act,  it  is  said : 

"The  term  'non-irrigable  lands,'  as  used  in  this  act,  is  construed 
to  mean  land  which,  as  a  rule,  lacks  sufficient  rainfall  to  produce 
agricultural  crops  without  the  necessity  of  resorting  to  unusual 
methods  of  cultivation  such  as  the  system  commonly  known  as 
'dry  farming,'  and  for  which  there  is  no  known  source  of  water 
supply  from  which  such  land  may  be  successfully  irrigated  at 
a  reasonable  cost." 

The  total  area  so  far  designated  under  this  act  is  190,509,572 
acres.  This  enormous  area  is  now  available  to  the  homesteaders 
as  provided  in  this  act,  and  will  prove  a  great  boon  to  them  by 
removing  the  hardships  heretofore  resulting  in  those  States  by 
application  of  the  provisions  of  the  general  homestead  law. 

The  General  Land  Office  has  been  specially  active  during  the 
past  four  years  in  the  investigation  of  fraudulent  irrigation  com- 
panies. The  investigations  by  the  field  force  of  the  General  Land 
Office  have  brought  to  light  a  large  number  of  such  concerns,  and 
they  have  been  thoroughly  investigated  and  vigorously  prosecuted, 
a  number  of  the  main  conspirators  having  been  convicted.  The 
general  procedure  of  concerns  of  this  kind  is  to  spread  very 
attractive  literature  concerning  their  projects  throughout  the 
country,  and  then  to  sell  worthless  stock  to  their  innocent  dupes. 
So  vigorous  has  been  the  attitude  of  the  General  Laud  Office  in 
matters  of  this  kind  that  those  of  the  conspirators  who  have  been 
fortunate  enough  to  escape  the  punishment  in  the  courts  have 
gone  out  of  business,  and  the  innocent  public  has  thus  been 
relieved  of  this  great  menace. 

During  the  year  1910  immense  forest  fires  swept  over  a  great 
part  of  the  forests  in  the  Northwest,  and  resulted  in  great  hard- 
ship to  the  public  land  settlers.  Investigations  were  promptly 
made  by  the  General  Land  Office,  with  a  view  to  fully  placing 
the  extent  of  the  damage  done  and  the  suffering  occasioned  public 
land  claimants  before  the  Department.  Legislation  was  promptly 
recommended,  and  is  now  pending  before  Congress,  for  the  general 
relief*  of  the  communities  affected. 

The  energies  of  the  General  Land  Office  are  being  constantly 
bent  to  bringing  up  arrearages  of  work,  and  to-day,  for  the  first 
time  in  the  history  of  the  General  Land  Office,  it  can  be  said 
that  the  work  of  that  office  is  current. 

During  the  fiscal  years  1909,  1910  and  1911,  3,897,082  acres  of 
land  formerly  included  in  forest  reserves  were  restored  to  the 
public  domain,  and  are  now  open  to  settlement  under  the  public 
land  laws. 

During  the  past  four  years  approximately  6,814,443  acres  were 
restored  to  the  public  domain.  On  this  total  acreage  restored 
about  2,382,880  acres  represent  the  area  of  fraudulent  entries 
cancelled  on  special  agents'  reports;  about  4,345,665  acres  were 
restored  to  open  range  on  abatement  of  unlawful  inclosures,  and 
about  85,897  acres  were  restored  through  suits  to  cancel  patents 
fraudulently  acquired,  brought  by  the  Department  of  Justice  on 
the  recommendation  of  the  General  Land  Office  based  on  special 
agents'  reports. 

During  the  same  period  there  were  turned  into  the  Treasury, 
as  the  result  of  work  of  special  agents  of  the  General  Land  Office, 
$1,163,352.  Of  this  total  amount  collected  and  turned  into  the 
Treasury,  about  $420,723  was  accepted  as  settlement  for  timber 
trespasses;  about  $465,723  was  recovered  by  civil  and  criminal 
actions  brought  through  the  Department  of  Justice,  based  on 
investigations  by  the  General  Land  Office  in  cases  of  timber 
trespasses  and  fines  imposed  and  paid  in  cases  of  conspiracy, 
perjury,  subornation  of  perjury  and  unlawful  inclosures  of  the 
public  lands;  $192,000  was  accepted  by  the  Attorney-General  and 
the  Secretary  of  the  Interior  as  compromise  in  a  coal  trespass 


384  INTERIOR  DEPARTMENT. 

case  investigated  by  special  agents  of  the  General  Land  Office, 
and  $85,123  in  compromise  of  suits  to  cancel  patents. 

During  the  past  three  fiscal  years,  and  up  to  March  30th  of 
this  year,  83  suits  were  recommended  to  set  aside  grants  of  rights 
of  way  over  the  public  domain  for  reservoirs,  canals,  ditches, 
etc.,  on  the  grounds  of  misuse,  non-construction  or  abatement; 
968  civil  suits  were  won,  involving  timber  trespasses,  the  setting 
aside  of  patents  to  public  lands  unlawfully  obtained,  and  the 
removal  of  unlawful  inclosures  on  the  public  domain.  During 
the  same  period  the  following  convictions  were  obtained,  based 
on  special  agents'  reports :  Timber  trespasses,  133 ;  conspiracies, 
118;  perjury,  18;  subornation  of  perjury,  5;  unlawful  inclosures, 
132;  forgery,  16;  embezzlement,  13;  intimidation  of  public  land 
settlers,  25;  using  the  mails  to  defraud,  4;  and  disobedience  of 
subpoena,  1,  making  a  total  of  465  convictions  secured,  in  112  of 
which  prison  sentences  were  imposed,  the  rest  being  disposed  of 
by  fines. 

The  statement  has  been  made  that  the  public  land  laws  as 
administered  by  the  General  Land  Office  and  the  Department  of 
die  Interior  are  not  as  favorable  to  the  homesteaders  as  are  the 
laws  of  the  Dominion  of  Canada.  It  is  also  said  that  because 
of  the  greater  attractions  held  forth  by  the  Canadian  Govern- 
ment, thousands  of  American  citizens  who  would  make  desirable 
homestead  settlers  in  the  United  States  have  gone  to  the 
Dominion  of  Canada  and  there  made  their  homes.  In  an  official 
publication  issued  by  direction  of  the  Minister  of  the  Interior 
of  the  Canadian  Government  in  the  year  1911,  and  entitled 
"Immigration  Facts  and  Figures,"  it  is  stated  that  a  commission 
of  $3  on  a  man,  $2  on  a  woman  and  $1  on  a  child  is  paid  to 
certain  sub-agents  on  bona  fide  settlers  induced  by  them  to  settle 
in  western  Canada.  Notwithstanding  the  fact  that  the  Canadian 
Government  has  agents  in  the  United  States  who  receive  a  bonus 
for  every  man,  woman  and  child  induced  to  leave  the  United 
States  and  settle  upon  Canadian  lands,  it  will  be  seen  on  page 
18  of  the  publication  referred  to  that  from  and  including  the 
fiscal  year  1904-1905  to  the  fiscal  year  1910-1911,  121,451  Ameri- 
cans "arrived"  in  Canada,  on  only  3.98  per  cent,  of  which,  or 
2965  persons,  bonuses  were  paid.  When  it  is  understood  that  the 
2965  persons  concerned  are  made  up  not  only  of  the  men  who 
settle  on  Canadian  lands,  but  also  of  the  women  and  children 
who  accompany  them,  it  becomes  clear  that  the  statements  so 
frequently  made  of  the  enormous  number  of  persons  leaving  the 
United  States  to  take  up  Canadian  lands  has  been  very  greatly 
exaggerated.  Notwithstanding  the  fact  that  most  of  the  desirable 
lands  in  the  United  States  already  have  been  appropriated,  and 
the  further  fact  that  the  Canadian  Government  maintains  agents 
who  are  paid  a  bonus  for  every  person  induced  to  settle  on 
Canadian  lands,  it  appears  that  only  2965  persons  have  been 
persuaded  to  leave  the  United  States  for  this  purpose  in  seven 
years.  This  in  itself  is  an  answer  to  the  criticism  made  that 
the  United  States  Government  is  discouraging  rather  than 
encouraging  citizens  to  take  up  the  remaining  public  lands  avail- 
able to  them.  As  far  as  the  policy  of  the  General  Land  Office 
is  concerned,  the  contrary  indeed  is  the  case,  as  every  inducement 
that  is  consistent  with  the  laws  by  which  the  General  Land  Office 
is  governed  is  held  out  to  the  public  land  claimant,  and  especially 
to  the  bona  fide  homesteader.  A  comparison  between  the  pro- 
visions of  the  homestead  laws  in  the  United  States  and  the  home- 
stead laws  in  the  Dominion  of  Canada  will  show  that  in  many 
respects  the  American  land  laws  are  more  lenient  to  the  home- 
steader than  are  the  Canadian  land  laws,  with  the  possible  excep- 
tion of  the  residence  requirement. 

The  total  cash  receipts  from  the  sales  of  public  and  Indian 
lands,  together  with  miscellaneous  fees,  for  the  past  three  and 
one-half  years,  were  about  $39,559,562.  The  estimated  aggregate 
expenditure  and  liabilities  of  the  public  land  service,  including 
expenses  of  the  district  land  offices,  were  for  the  same  period 
$10,694,490.  This  gives  a  surplus  in  the  United  States  Treasury 
of  $28,865,072. 

The  total  area  of  land  originally  entered  during  the  last  three 
and   one-half   years   is   approximately    73,742,42 1    acres,    and    the 


INTERIOR  DEPARTMENT.  385 

total  area  patented  is  41,943,134  acres.     For  the  fiscal  years  1909, 

1910  and  1911,  19,240,374  acres  were  patented  under  the  home- 
stead  law.     The    total   acreage   patented   during   the   fiscal   year 

1911  was  12,272,495  acres,  an  increase  of  1,289,345  acres  as  com- 
pared with  the  fiscal  year  1910.  The  number  of  patents  issued 
during  the  fiscal  year  ending  June  30,  1911,  were  72,189,  as  against 
72,080  for  1910.  The  acreage  patented  under  the  homestead  law 
in  1911  showed  a  decrease  of  2,102,912  acres  when  compared  with 
the  fiscal  year  1910,  but  the  total  acreage  of  lands  of  all  kinds 
patented  during  the  fiscal  year  1911,  as  compared  with  the  fiscal 
year  1910  shows  an  increase  of  1,289,345  acres  (see  page  34, 
Commissioner's  Annual  Report,  1910,  also  page  4.)  This  is 
accounted  for  by  the  fact  that  the  most  desirable  homestead 
lands  have  already  been  taken  up  and  that  hereafter  the  greater 
percentage  of  the  lands  patented  will  necessarily  be  taken  under 
other  than  the  homestead  law. 

The  contract  system  of  surveying  the  public  domain  was  dis- 
pensed with  in  the  year  1910,  and  what  is  known  as  the  direct 
system  has  taken  its  place.  Under  the  old  or  contract  system, 
contracts  for  the  survey  of  the  public  domain  were  let  out  to 
surveyors  not  in  the  Government  service.  Experience  demon- 
strated the  fact  that  this  system  resulted  in  inaccuracy  and 
vexatious  delays,  and  to  overcome  these  objections  the  direct 
system  was  inaugurated.  Under  this  system  a  regular  corps  of 
salaried  surveyors  is  maintained  by  the  Government  under  the 
immediate  supervision  of  the  Commissioner  of  the  General  Land 
Office.  While  the  present  organization  has  only  recently  entered 
on  its  work,  it  has  already  been  clearly  shown  to  be  a  great 
improvement  over  the  old  system.  The  statistics  of  the  General 
Land  Office  show  an  increase  of  25  per  cent,  in  the  work  accom- 
plished in  the  period  of  a  fiscal  year  under  the  new  system  over 
the  old  system,  and  furthermore,  a  saving  of  $5  a  mile  on  the 
expense  of  the  survey,  or  a  saving  in  the  neighborhood  of  $150,000 
per  annum.  In  addition,  there  is  a  saving  of  from  one  to  two 
years  in  time  in  the  final  approval  of  the  surveys.  That  the  new 
system  of  surveys  has  been  a  distinct  success  is  further  estab- 
lished by  the  enthusiastic  approval  it  has  received  throughout 
the  Western  States  since  its  inauguration. 

Closer  scrutiny  is  being  paid  to  applications  under  the  Carey 
Act.  Not  only  is  an  examination  made  of  the  land  sought  to  be 
segregated,  but  the  question  of  sufficiency  and  practicability  of 
the  proposed  scheme  is  looked  into.  In  this  way  the  Western 
settlers  under  Carey  Act  projects  are  given  the  fullest  protection, 
and  the  project  must  bear  the  stamp  of  the  Government's  approval 
before  it  is  allowed  to  go  forward.  Every  care  is  being  taken 
that  no  mineral  lands  are  lost  to  the  United  States  under  school 
lands,  railroad  or  other  grants  providing  for  the  acquisition  of 
agricultural  lands  only.  The  amount  of  lands  approved  under 
the  Carey  Act  during  this  administration  is  approximately 
2,239,531  acres. 

The  department,  with  a  view  to  protecting  the  public  against 
exorbitant  prices  and  to  insure  proper  development,  has  recom- 
mended to  Congress  the  passage  of  a  liberal  but  carefully  guarded 
leasing  law  for  the  development  of  its  mineral  resources,  and 
especially  of  its  coal  lands.  In  the  measure  proposed  by  the 
department  provision  is  made  for  the  reservation  of  a  sufficient 
amount  of  coal  lands  to  provide  for  the  future  needs  of  the  Navy 
and  the  mining  of  this  coal  by  the  Government  for  this  purpose. 

Work  in  Behalf  of  Conditions  in  Alaska. 

The  department  has  also  recommended  the  construction  by  the 
Government  of  a  central  trunk  line  railroad  from  tidewater  to 
the  Tanana  and  the  Yukon  Rivers.  A  request  for  more  liberal 
appropriations  has  also  been  made  with  a  view  to  aiding  naviga- 
tion and  for  the  construction  of  roads  and  trails,  and  finally,  the 
adoption  of  a  form  of  territorial  government  better  adapted  to 
Alaska's  remote  situation  and  its  peculiar  local  conditions.  The 
investigation  of  coal  claims  in  Alaska  is  proceeding  rapidly.  A 
decision  has  been  rendered  in  the  so-called  Cunningham  coal 
cases,   holding  the  entries   for   cancellation.      Hearing  has    been 


386  INTERIOR  DEPARTMENT. 

had  in  one  other  group  of  coal  claims,  and  examination  made  on 
the  ground  in  a  large  majority  of  ail  the  other  coal  claims  to 
ascertain  whether  or  not  the  law  had  been  complied  with.  The 
total  number  of  coal  locations  in  Alaska  is  1125 ;  the  number  of 
applications  for  patent,  521 ;  the  number  of  notices  of  charges 
served,  172;  the  number  of  answers  to  charges  filed,  125;  the 
number  of  expiration  notices  served,  566;  the  number  of  answers 
to  expiration  notices  filed,  90;  and  the  number  of  entries  yet  to 
be  investigated  out  of  the  total  of  1125  is  only  262.  Up  to  July, 
1911,  indictments  returned  in  Alaska  criminal  prosecutions,  affect- 
ing coal  lands,  covered  641  out  of  the  total  of  1125  coal  claims. 
It  should  be  clearly  understood  that  not  one  single  acre  of  coal 
lands  in  Alaska  has  been  patented  to  anybody.  The  timber  regu- 
lations heretofore  in  force,  with  reference  to  Alaska,  have  been 
recalled  and  new  regulations  issued  in  place  thereof.  The 
improvements  in  the  new  regulations  over  the  old  are  as  follows : 
(a)  The  special  agents  of  the  General  Land  Office  are,  under 
these  new  regulations,  authorized  to  issue  a  written  permit  to 
applicants  who  desire  to  cut  timber,  whereupon  the  applicant  may 
immediately  proceed  in  accordance  with  the  regulations  to  cut 
and  remove  the  same;  while  under  the  old  practice  the  timber 
could  not  be  cut  until  an  investigation  had  been  made  by  the 
agent.  The  main  difference  is  that  the  investigation  under  the 
new  practice  is  made  subsequent  and  not  prior  to  the  cutting. 
In  this  way,  the  man  in  need  of  timber  in  Alaska  for  domestic 
use  is  immediately  provided  for.  (b)  Under  the  new  practice, 
the  applicant  is  allowed  one  year  after  the  date  of  the  permit 
in  which  to  cut  and  remove  the  timber  and  another  year  within 
which  to  consume  it;  while  under  the  old  practice  timber  had 
to  be  cat  and  consumed  within  a  year.  This  amendment  is 
helpful  to  settlers  in  Alaska,  in  that  it  allows  an  additional  year 
in  which  the  green  timber  may  become  seasoned  and  more  suit- 
able for  use.  (c)  The  applicant  has  not  the  exclusive  right  to 
cut  timber  within  the  area  described  for  permit  where  the  area 
is  more  than  40  acres.  This  provision  was  not  in  the  old  regu- 
lations. Its  purpose  is  to  keep  a  number  of  persons  from  com- 
bining to  control  the  eutting  of  a  large  area  of  timber,  (d)  The 
applications  made  by  persons  desiring  t©  cut  timber  under  the 
new  practice  may  now  be  approved  on  corroboration  by  two 
witnesses,  while  under  the  old  practice  it  was  necessary  that  it 
should  be  executed  before  a  notary  public.  As  distances  are  great 
in  Alaska  and  notaries  public  few,  this  provision  will  result  in 
great  relief  to  Alaskan  settlers  in  the  elimination  of  expense  and 
time  in  obtaining  the  necessary  timber  for  domestic  uses,  (e)  In 
case  the  value  of  the  timber  to  be  cut  is.  less  than  $50  only  the 
actual  value  need  be  deposited,  while  under  the  old  rules  a 
deposit  of  $50  was  required  on  each  application  regardless  of 
the  value,  (f)  The  amount  of  timber  that  may  be  taken  free  of 
charge  for  the  use  of  the  applicant  himself  under  the  new  rules 
is,  the  maximum  amount,  30,000  feet  B.  M.,  or  60  cords,  which 
may  be  taken  interchangeably,  in  which  case  one  cord  is  to  be 
considered  the  equivalent  of  500  feet  B.  M.  Under  the  old  rules 
the  applicant  might  eut  not  to  exceed  $50  stumpage  value  for 
free  use  in  one  year.  The  new  provision  makes  the  amount  of 
timber  that  may  be  cut  uniform  irrespective  of  stumpage  value, 
and  this  is  a  material  assistance  to  the  Alaska  settlers  because 
of  the  difference  in  stumpage  values  in  different  parts  of  Alaska. 


*»•.••  **«  ■  *•—- 


*• 


DEPARTMENT  OP  AGRICULTURE. 

It  is  the  aim  of  the  Department  of  Agriculture  to  help  our 
farmers  in  all  sections  of  the  country,  and  to  use  all  endeavors  to 
help  the  tiller  of  the  soil  toward  greater  efficiency  and  more 
economic  production ;  to  make  the  American  acre  more  potent  in 
growing  crops.  The  Congress  during  the  last  fifteen  years  has 
increased  nine-fold  the  amount  of  money  invested  in  agricultural 
research  and  demonstration,  to  give  the  American  farmers  help 
in   their   operations   on   the   farm,   to   feed   our   people  well   and 


DEPARTMENT  OF  AGRICULTURE.  387 

cheaply,  and  enable  them  to  compete  with  the  outside  world. 
It  has  provided  for  over  two  thousand  scientists,  specialists  in 
their  respective  lines,  who  are  in  touch  with  our  farmers  in  all 
sections  of  the  country,  gathering  information  and  preparing  it 
for  issue  in  departmental  publications,  of  which  nearly  twenty- 
eight  million  pieces  were  given  out  in  1911  to  go  into  our  country 
homes,  dealing  directly  with  what  is  uppermost  in  the  minds  of 
our  growers  of  plants  and  animals  at  the  time  of  publication. 

Science  Applied  to  Development  of  Agriculture. 

The  education  of  specialists  in  applied  science  to  meet  the 
demand  for  research  under  the  Federal  Government  and  under 
State  institutions  has  become  a  prominent  feature  of  depart- 
mental work.  Graduates  of  our  agricultural  and  other  colleges 
are  drafted  into  the  Department  of  Agriculture  and  prepared  for 
scientific  research  along  the  lines  demanded  by  the  producers 
of  our  country  under  all  our  varied  conditions.  Within  the  last 
eleven  years  nearly  sixteen  hundred  young  men  have  had  post- 
graduate instruction  in  the  sciences  of  agriculture.  The  Depart- 
ment of  Agriculture  and  the  State  experiment  stations  are  actively 
co-operating  with  regard  to  unsolved  problems  that  affect  the 
farmer  throughout  our  States  and  Territories  and  in  the  islands 
of  the  sea  that  have  lately  come  into  our  possession. 

New  markets  for  our  surplus  production  are  being  sought  in 
foreign  countries,  and  scientific  inquiry  is  being  made  into  the 
preparation  of  our  exports  for  foreign  markets.  Uncertainty 
with  regard  to  the  magnitude  of  our  crops  at  home  is  being 
removed  by  careful  statistical  inquiry,  to  the  end  that  more 
accurate  knowledge  with  regard  to  production  may  mitigate  the 
evils  of  speculation.  Inquiry  is  also  being  made  into  the  pro- 
ductions of  competing  countries,  in  order  that  the  American 
farmer  may  know  what  he  has  to  meet  in  foreign  markets. 

New  Products  for  American  Farms. 

Strenuous  efforts  are  being  made  to  encourage  the  home  pro- 
duction of  articles  we  have  been  importing  from  foreign  countries. 
During  the  last  fourteen  years  there  has  been  an  increase  in  the 
production  of  sugar  from  beets  which  makes  the  product  of  1910, 
amounting  to  510,000  tons,  over  twelve  times  that  of  1896  and 
its  value  about  thirteen  times.  Fifteen  years  ago  we  produced 
only  one-fourth  of  the  rice  consumed  in  the  United  States.  The 
fostering  work  of  the  Federal  Government  has  enabled  the  rice 
growers  to  produce  more  than  the  equivalent  of  our  home  con- 
sumption and  foreign  markets  are  being  sought  for  the  surplus. 
There  was  an  increase  in  the  production  of  rice  from  97,000,000 
pounds  in  1896  to  an  average  of  868,000,000  pounds  during  the 
last  four  years. 

Scientific  research  by  the  Bureau  of  Soils  demonstrates  the 
fact  that  we  can  produce  at  home  the  fine  tobaccos  for  which  we 
have  been  paying  over  twenty  million  dollars  a  year  to  foreign 
countries.  Our  explorers  have  searched  foreign  lands  for  grains, 
legumes,  fiber  plants,  teas,  etc.,  for  introduction  into  sections  of 
the  United  States  suitable  for  their  production.  The  producing 
area  for  grains  has  been  extended  westward  into  the  dry  regions 
of  our  country  through  the  introduction  of  plants  that  are  at 
home  where  the  rainfall  is  light.  Nearly  fifty  millions  of  bushels 
of  wheat  are  being  grown  in  regions  that  have  heretofore  been 
unproductive. 

Eradication  of  Diseases  of  Farm  Animals  and  Products. 

The  Federal  Government  is  studying  the  diseases  of  domestic 
animals  with  a  view  to  their  complete  eradication.  Our  animals 
and  their  products  go  to  foreign  countries  with  bills  of  health- 
fulness.  The  American  meats  are  the  most  wholesome  in  the 
world,  as  the  world  now  knows.  An  imported  disease  of 
domestic  animals  was  promptly  stamped  out  within  a  year  at 
an  expenditure  of  $300,000,  to  prevent  it  from  spreading  through- 
out the  country  among  our  herds  and  flocks.     Rigid  inspection 


388  DEPARTMENT  OP  AGRICULTURE. 

against  foreign  countries  having  animal  diseases  is  maintained 
at  our  ports  of  entry,  in  order  to  protect  the  health  of  our 
domestic   animals. 

Within  the  last  fifteen  years  the  Government  has  become  thor- 
oughly equipped  to  deal  with  plant  diseases.  The  loss  of  half 
a  million  dollars  annually  was  stopped  by  pathological  examina- 
tion of  our  sea-island  cottons.  New  varieties  of  fruits,  cereals, 
cottons,  etc.,  are  being  created  by  hybridizing  to  meet  the  demands 
of  producers  of  these  crops  in  the  North  and  in  the  South. 

Our  forests  have  been  mostly  destroyed  and  our  mountains, 
the  natural  reservoirs  for  water,  have  been  rendered  incapable 
of  retaining  moisture.  Efforts  are  being  made  to  reforest  the 
country,  to  prevent  fires,  to  regulate  grazing  in  our  forests,  and 
to  study  lumbering  and  forest  products. 

The  Federal  Government  is  making  inquiry  into  road  material 
and  a  beginning  has  been  made  in  the  education  of  young  men 
toward  road  building.  A  laboratory  has  been  established  in  the 
Department  of  Agriculture  for  the  study  of  materials  with  which 
to  construct  roads;  and  rocks,  gravels,  clays,  tiling,  cement,  con- 
crete pavements,  stone,  brick,  wood  and  asphaltum  are  being 
studied. 

The  Central  American  boll  weevil,  now  the  greatest  menace 
to  the  cotton  crop  of  the  United  States,  is  being  actively  studied 
as  it  increases  its  range,  and  means  of  control  have  been  devised 
which  make  the  growth  of  cotton  nearly  as  profitable  as  ever. 
The  insect  enemies  of  other  great  staple  crops  are  being  investi- 
gated throughout  the  country,  and  the  gypsy  and  brown-tail 
moths,  which  are  threatening  the  forest  areas  of  New  England. 
are  being  checked  and  brought  into  measureable  control  by  the 
agency  of  the  Federal  Government  in  co-operation  with  State 
authorities.  The  losses  occasioned  by  insect  pests  in  general 
amount  to  hundreds  of  millions  annually,  and  much  of  this  loss 
may  gradually  be  prevented  by  the  kind  of  work  done  by  the 
Department  of  Agriculture. 

The  practicability  of  growing  tea  in  the  United  States  is  being 
demonstrated,  and  extensive  experimentation  is  being  made  in 
the  production  of  silk. 

The  atmosphere  in  its  relations  to  agriculture  and  commerce 
is  being  carefully  studied,  and  trained  meteorologists  for  the  first 
time  in  our  history  are  being  detailed  from  the  Department  of 
Agriculture  to  give  lectures,  in  institutions  of  learning,  in  order 
that  we  may  have  scholars  in  the  land  along  this  line  of  inquiry. 
to  the  end  that  the  farmer  and  the  mariner  may  have  all  the 
protection  that  intelligent  forecasting  can  give  them. 


The  Meat  Inspection  and  Pnre  Food  Laws. 

On  June  30,  1906,  the  Meat  Inspection  Amendment  became  a 
law.  Under  the  provisions  of  this  amendment  the  Federal  Gov- 
ernment guarantees  to  the  people  of  the  United  States  that  the 
meat  shipped  in  interstate  commerce  is  derived  from  animals 
which  are  free  from  disease  at  the  time  of  slaughter  and  that  meat 
food  products  from  these  animals  are  prepared  in  clean  packing 
houses,  under  sanitary  conditions,  and  without  the  addition  of  any 
injurious  or  deleterious  drugs,  chemicals  or  preservatives.  The 
United  States  now  has  the  most  stringent  and  the  best  enforced 
meat  inspection  law  of  any  country  in  the  world,  and  it  is  a  great 
protection  to  the  health  and  lives  of  the  people.  Nearly  3300 
employes  are  directly  engaged  each  working  day  in  the  year  in  the 
enforcement  of  the  law. 

In  the  same  year  was  enacted  the  Pure  Food  Law.  This  law 
covers  all  foods,  with  the  exception  of  meats,  including  beverages, 
and  also  drugs  which  enter  interstate  or  foreign  commerce.  By 
its  terms,  articles  of  food  or  drink  must  not  contain  any  injurious 
or  deleterious  drug,  chemical  or  preservative,  and  the  label  upon 
each  package  of  food,  drugs  or  drink  must  state  the  exact  fact,  and 
must  not  be  false  or  misleading  in  any  particular.  While  this  law 
does  not  cover  foods,  beverages  and  drugs  which  are  produced  and 
consumed  entirely  within  the  limits  of  one  State,  yet  its  enactment 
has  incited  the  legislatures  of  the  different  States  to  enact  laws 
covering  domestic  products  of  a  like  nature.    These  laws  very 


t DEPARTMENT  OF  AGRICULTURE.  889 

generally  follow  the  national  acts  as  to  form  and  detail,  the  only 
difference  being  that  one  affects  interstate  and  foreign  commerce, 
while  the  other  affects  the  internal  commerce  of  the  State. 
Inspectors  are  continually  traveling  throughout  the  United  States 
to  discover  whether  the  terms  of  the  law  are  being  observed, 
and  they  have  found,  upon  the  part  of  manufacturers  and  dealers, 
a  very  general  compliance  with  tbe  law.  When  violations  of  the 
law  are  observed,  they  are  at  once  prosecuted  by  the  Department 
of  Justice  and  the  guilty  parties  are  punished. 

The  health  of  our  people  is  being  safeguarded  by  inquiry  into 
importations  of  food  from  foreign  countries  that  contain  sub- 
stances deleterious  to  health.  The  United  States  is  no  longer 
the  dumping  ground  for  food  stuffs  that  are  forbidden  sale  in 
the  countries  where  they  originate. 

An  aim  of  the  department  is  to  make  the  American  independ- 
ent with  regard  to  everything  that  can  be  produced  in  our 
latitudes.  Corps  of  scientists  have  been  placed  in  each  of  the 
new  island  groups  that  have  lately  come  under  our  jurisdiction 
for  the  purpose  of  helping  them  to  produce  what  cannot  be  grown 
in  the  continental  United  States. 

The  Department  of  Agriculture  is  furnishing  information  re- 
garding the  requirements  and  possibilities  of  irrigation,  both  in 
the  arid  regions  of  the  United  States  and  as  an  aid  to  agriculture 
in  the  humid  East  This  inquiry  determines  the  amount  of 
water  needed  to  give  the  best  results. 


DEPARTMENT   OF   COMMERCE    AND   LABOR. 

This  department  is  only  nine  years  old,  and  was  organized  in 
response  to  the  popular  demand  for  greater  governmental  assist- 
ance in  the  solution  of  problems  and  regulation  of  interests  which 
concern  all  the  people,  and  with  which  the  individual  is  unable  to 
cope.  This  trend  to  greater  governmental  activity  found  expression 
particularly  in  the  creation  of  the  Department  of  Agriculture,  and 
is  similarly  found  in  some  of  the  older  departments.  Advancing 
beyond  the  mere  sphere  of  regulation,  government  has  become  a 
part  of  the  creative  force.  This  is  true  of  the  State  Department, 
in  which  the  Consular  Service  now  constitutes  an  active  agency  for 
the  promotion  of  foreign  commerce.  It  is  true  of  the  War  Depart- 
ment, which  is  engaged  in  the  government  of  colonies,  the  building 
of  the  Panama  Canal,  and  the  improvement  of  river  navigation.  It 
is  true  of  the  Interior  Department,  in  which  large  projects  for 
reclamation  and  irrigation  are  successfully  carried  on. 

The  Department  of  Commerce  and  Labor  was,  therefore,  organ- 
ized to  "foster,  promote,  and  develop  the  foreign  and  domestic 
commerce,  the  mining,  manufacturing,  shipping,  and  fishing  in- 
dustries, the  labor  interests,  and  the  transportation  facilities  of 
the  United  States."  Around  this  nucleus  were  assembled  a  num- 
ber of  the  older  bureaus  more  or  less  directly  associated  with 
the  promotion  of  commerce,  by  transfer  from  other  departments. 
These,  together  with  the  newer  bureaus  created,  constitute  the 
department  in  its  present  form. 

Each  of  the  thirteen  bureaus  which  compose  the  department  has 
a  chief,  by  whom,  under  the  supervision  of  the  Secretary,  its 
affairs  are  administered.  The  entire  force  of  the  department  num- 
bers about  10,413,  of  whom  1949  are  stationed  in  Washington,  and 
the  rest  are  located  at  different  stations  throughout  the  country  or 
are  engaged  in  the  field  or  at  sea. «  While  the  activities  of  this 
department  cover  a  very  wide  range,  the  appropriation  for  the  fiscal 
year  ending  June  30,  1911,  was  only  $19,775,940.58,  which  is  only  a 
trifling  increase  over  the  appropriations  of  earlier  years.  The  col- 
lections turned  into  the  Treasury  by  the  department  during  the 
same  year  were  $5,691,256.06,  so  that  the  net  appropriation  was 
only  $10,084,684.52.  It  is  estimated  that  of  these  appropriations  a 
sum  in  excess  of  $400,000  will  be  returned  to  the  Treasury  unused. 

Perhaps  the  bureaus  most  characteristic  of  the  department's 
purpose  are  the  Bureau  of  Manufactures  and  the  Bureau  of 
Labor,  with  which  the  other  bureaus  are  more  or  less  closely 
affiliated. 


3»0  DEPARTMENT  OF  COMMERCE  AND  LABOR.  ~        K 

Bureau  of  Manufactures. 

This  bureau  is  actively  fostering,  promoting  and  developing  the 
various  manufacturing  industries  of  the  United  States,  and  mar- 
kets for  the  same  at  home  and  abroad,  domestic  and  foreign,  by 
gathering,  compiling,  publishing  and  supplying  all  available  and 
useful  information  concerning  such  industries  and  such  markets, 
and  by  such  other  methods  and  means  as  may  be  prescribed  by  the 
Secretary  or  provided  by  law.  The  consular  officers,  under  the 
direction  of  the  Secretary  of  State,  gather  and  compile  useful  and 
material  information  and  statistics  for  use  and  publication  by  this 
bureau. 

It  constitutes  a  real  foundation  for  our  commercial  development 
at  home  and  abroad.  So  far  it  has  not  been  able  to  do  more  than 
demonstrate  its  possibilities,  but,  in  spite  of  the  small  appropria- 
tions, so  much  has  been  done.  The  growing  interest  in  its  activities 
is  demonstrated  by  a  constant  increase  in  correspondence  and 
inquiries  from  commercial  and  industrial  bodies,  and  by  a  steady 
increase  in  the  demand  for  the  bureau's  reports.  In  every  respect 
the  relation  between  this  governmental  agency  and  the  general 
commerce  and  industries  of  the  country  is  becoming  more  and  more 
close.  A  persuasive  evidence  of  this  is  to  be  found  in  the  organi- 
sation of  the  Chamber  of  Commerce  of  the  United  States  within 
the  last  few  months.  The  response  to  an  invitation  to  the  com- 
mercial bodies  of  this  country  to  meet  for  the  purpose  of  consider- 
ing this  question  was  pronounced  and  enthusiastic,  and  steps  taken 
for  the  organization  were  successful  and  participated  in  by  many 
representative  men.  It  is  safe  to  call  the  undertaking  a  success, 
and  to  accept  the  movement  as  a  long  step  toward  a  closer  co- 
operation between  the  Government  and  commercial  and  industrial 
forces  for  the  consideration  of  all  questions  of  domestic  and  foreign 
commerce. 

Bureau  of  Statistics.    . 

This  bureau  is  gathering  and  publishing  statistics  of  our  for- 
eign commerce.  Its  system  has  been  so  perfected  that  its  publica- 
tions are  given  to  the  public  with  great  promptness,  and  the 
information  is  of  such  general  interest  that  it  usually  reaches  the 
public  through  the  press  in  advance  of  the  regular  publication.  If 
this  bureau  is  consolidated  with  the  Bureau  of  Manufactures,  in 
obedience  to  recommendations  which  have  been  made  by  commis- 
sions to  investigate  the  propriety  of  such  a  consolidation,  and 
which  have  been  approved  by  several  Secretaries  of  the  department 
and  also  by  the  President  of  the  United  States,  the  new  bureau, 
named  the  Bureau  of  Foreign  and  Domestic  Commerce,  will,  under 
this  appropriate  title,  embrace  all  the  authority  and  functions 
which  properly  belong  to  a  development  of  this  branch  of  the 
Government 

Bureau  of  Labor. 

This  bureau  is  doing  excellent  work  in  acquiring  and  diffusing 
among  the  people  of  the  United  States  useful  information  on  sub- 
jects connected  with  labor,  in  the  most  general  and  comprehensive 
sense  of  that  word,  and  especially  upon  its  relation  to  capital,  the 
hours  of  labor,  the  earnings  of  laboring  men  and  women,  and 
the  means  of  promoting  their  material,  social,  intellectual,  and 
moral  prosperity.  Its  activities  are  measured  only  by  the  amount 
of  the  appropriation.  Its  latest  reports  embrace  inquiries  into  the 
conditions  of  employment  in  the  iron  and  steel  industry,  the  em- 
ployment of  women  and  girls  in  the  larger  cities,  the  investigation 
into  industrial  diseases  in  various  industries,  and  reports  on  the 
labor  laws  of  the  principal  industrial  countries  of  the  world.  The 
bureau's  reports  cover  many  other  fields,  and  are  now  in  shape  for 
distribution  upon  demand.  Still  other  subjects  are  covered  in  the 
form  of  bulletins  and  larger  publications. 

Under  the  act  providing  for  compensation  for  injuries  to  certain 
employes  of  the  United  States,  2095  claims  were  received  during 
the  fiscal  year  of  1911.  The  act  is  being  administered  to  the  en- 
tire satisfaction  of  all  concerned,  and  it  has  been  strongly  rec- 
ommended that  the  provisions  of  the  act  be  extended  to  enlarge 


DEPARTMENT  OF  COMMERCE  AND  LABOR.  391 

the  class  of  employes  to  be  benefited  by  its  provisions.  In  addition, 
the  chief  of  this  bureau,  in  conjunction  with  Judge  Knapp.  is  often 
engaged  in  adjusting  differences  between  common  carriers  and 
their  employes.  During  the  last  several  years  there  have  scarcely 
been  three  consecutive  months  during  which  they  have  not  been 
engaged  in  work  of  this  kind,  and  their  efforts  have  usually  been 
crowned  with  success. 

Children's  Bureau. 

This  bureau  has  just  been  created,  with  the  authority  to  in- 
vestigate and  report  upon  all  matters  pertaining  to  the  welfare  of 
children  and  child  life  among  all  classes  of  our  people,  and  especially 
investigate  the  questions  of  infant  mortality,  the  birth  rate, 
orphanage,  juvenile  courts,  desertion,  dangerous  occupations,  acci- 
dents and  diseases  of  children,  employment,  legislation  affecting 
children  in  the  several  States  and  Territories. 

Miss  Julia  C.  Lathrop,  of  Chicago,  has  been  appointed  as  chief, 


Bureau  of  Corporations. 

The  work  of  this  bureau  is  well  known.  It  is  actively  investi- 
gating the  organization,  conduct  and  management  of  the  business 
of  any  corporations ;  gathering  information  and  data  to  enable  the 
President  to  make  recommendations  to  Congress  for  legislation  for 
the  regulation  of  commerce. 

The  results  of  the  work  of  this  bureau  have  necessarily  not 
been  limited  to  the  immediate  purpose  described  in  the  law.  Ob- 
viously, the  information  which  has,  through  its  publication,  been 
brought  home  to  the  general  public  has  had  a  strong  influence  to 
shape  public  opinion  upon  the  subjects  in  question.  Among  the 
more  important  investigations  and  reports  made  and  issued  dur- 
ing the  last  year  are  those  pertaining  to  the  lumber  industry, 
transportation  by  water,  steel  industry,  state  taxation  of  cor- 
porations, and  the  International  Harvester  Company. 

Bureau  of  Standards. 

The  extent  of  this  bureau's  work  is  limited  only  by  the  ap- 
propriation. Length,  mass,  volume,  temperature,  quantity  of  heat, 
light,  electrical  quantities,  and  properties  of  materials  have  con- 
stituted the  chief  subjects  of  its  investigations.  Work  done 
for  private  parties  is  paid  for  at  fixed  prices.  In  addition,  ex- 
tensive work  is  done  for  other  departments  of  the  Government, 
and,  if  charged  for  at  usual  rates,  would  bring  in  a  substantial 
sum.  This  Bureau  establishes  standards,  sometimes  for  the  use 
and  guidance  of  private  parties,  and  at  other  times  to  enable 
state  officials  to  enforce  such  standards.  In  the  latter  case  it 
furnishes  a  happy  illustration  of  successful  co-operation  between 
federal  and  state  authority.  Regular  meetings  of  representatives 
of  state  governments  are  held  in  Washington  each  year  for  the 
purpose  of  conference.  It  may  be  confidently  said  that  by  this 
means  the  enforcement  of  state  laws  for  the  regulation  and  ob- 
servance of  established  standards  has  been  materially  promoted. 
One  of  the  beneficial  results  of  these  conferences  is  the  more 
common  recognition  of  the  fact  that  the  integrity  of  weights 
and  measures  is  just  as  important  as  the  integrity  of  the  dollar. 
Just  as  much  is  true  of  the  integrity  of  the  articles  and  wares 
that  are  sold.  A  full  dollar  ought  to  bring  correct  weight  and 
measure  and  unadulterated  goods. 


Bureau  of  Fisheries. 

The  work  of  the  bureau  may  be  illustrated  by  the  statement 
that  during  the  last  year  the  fish  and  fish  egg  output  totaled 
considerably  more  than  3,500,000,000— that  is,  558,000,000  eggs, 
more  than  3,000,000  fry,  and  14,800,000  fish  of  fingerling,  year- 
ling, or  adult  size.  It  operates  four  steamers  and  one  sea-going 
schooner,  and  has  under  its  control  37  hatcheries  and  several 
stations   for   scientific   experiment   and   investigation.     Since   the 


392  DEPARTMENT  OP  COMMERCE  AND  LABOR. 

lease  of  the  seal  herds  has  been  discontinued,  and  the  Govern- 
ment has  taken  charge,  the  Government's  income  from  this  source 
has  more  than  doubled,  resulting  in  an  increase  over  previous 
years  of  some  $250,000,  with  a  smaller  number  of  male  seals  killed. 
Since  the  ratification  of  the  treaty  against  pelagic  sealing,  it 
may  be  assumed  that  within  a  few  years  seal  herds  will  rapidly 
grow,  and  the  share  of  the  United  States  will  show  a  large  in- 
crease even  after  the  stipulated  amounts  have  been  paid  par- 
ticipating nations. 

Bureau  of  the  Census. 

This  bureau,  created  primarily  as  a  means  of  securing  the  decen- 
nial enumeration  of  inhabitants  required  by  the  Constitution  on 
which  to  base  representation  and  direct  taxes,  now  collects  detailed 
statistics  relating  to  population,  agriculture,  manufactures,  mines 
and  quarries,  including  irrigation  enterprises,  cattle  and  other  ani- 
mals slaughtered  for  food  purposes,  and  the  production  of  hides, 
turpentine  and  rosin. 

The  bureau  was  made  a  permanent  establishment  by  the  Act 
of  March  6,  1902.  By  that  act  the  bureau  is  charged  with  the 
collection  of  statistics  relative  to  the  defective,  dependent  and  de- 
linquent classes,  to  crime,  pauperism  and  benevolence,  to  social  sta- 
tistics of  cities,  to  public  indebtedness,  expenditures  and  taxation, 
to  religious  bodies,  to  water  transportation  and  express  business, 
to  mines,  quarries  and  minerals,  to  savings,  mortgage,  loan  and 
similar  institutions,  and  to  the  fishing  industry ;  every  fifth  year 
after  the  decennial  census,  of  statistics  of  manufactures  under 
the  factory  system;  every  five  years,  of  statistics  relating  to 
street  railways,  electric  light  and  power  stations,  and  telephone 
and  telegraph  business;  annually,  of  statistics  relating  to  births 
and  deaths,  and  to  cotton  ginned.  By  the  joint  resolutions  of 
February  9,  1903,  and  March  2,  1909,  the  bureau  is  charged  with 
the  collection  of  further  cotton  statistics,  relating  to  cotton  con- 
sumption, surplus,  exports,  and  stocks  of  baled  cotton. 
.  Ordinarily  a  force  of  about  650  is  employed,  but  during  the 
taking  of  the  decennial  census  of  1910  this  force  reached  the 
number  of  3800.  Owing  to  the  lack  of  a  necessary  appropriation 
of  about  $500,000,  it  is  not  possible  to  issue  publications  quite 
within  the  period  contemplated  by  law,  but  even  so  the  delay  will 
not  be  serious.  Under  the  plan  now  adopted,  a  smaller  number 
of  complete  compendiums  will  be  issued,  intended  only  for  the 
libraries  and  students  who  may  be  interested  in  the  complete 
set,  containing  all  detailed  information.  The  compendium  for  a 
given  State  will  contain  all  the  material  in  the  separate 
bulletins  for  that  State  and  all  the  material  in  the  general  United 
States  bulletins,  together  with  some  additional  information  and 
text  discussion.  The  compendium  of  any  given  State  will  thus  be 
a  convenient  volume,  containing  perhaps  three  or  four  hundred 
pages,  which  will  be  of  great  practical  value  to  the  people  of  that 
State. 

In  spite  of  the  larger  area  to  be  covered,  the  tremendous 
growth  of  our  industries,  and  the  increase  in  population,  it  is  a 
gratifying  fact  that  the  administrative  cost  of  the  taking  of  the 
last  decennial  census  will  not  be  as  great  as  it  was  in  the  corre- 
sponding census  taken  ten  years  ago.  The  expense  of  the  field 
service  will  necessarily  be  increased,  by  reason  of  the  larger  force 
employed  and  the  higher  compensation  necessarily  paid. 

In  connection  with  the  work  the  bureau  has  introduced  a  sys- 
tem of  tabulating  machines,  which  has  not  only  successfully 
served  its  purpose  in  the  Government's  work,  but  also  furnishes 
a  good  illustration  of  the  possibilities  for  the  employment  of  such 
machines  in  larger  business  enterprises. 

It  is  worthy  of  note  that  the  entire  census  was  taken  with 
practically  no  complaint  of  the  conduct  of  those  who  were  charged 
with  it.  Complaints  of  padding  presented  in  the  case  of  a  number 
of  cities  have  been  investigated,  and  in  some  cases  resulted  in  the 
finding  of  indictments  and  in  convictions. 

Bureau  of  Immigration  and  Naturalization. 

The  purpose  of  this  bureau  is  sufficiently  indicated  by  its  title. 
While  its  entire  force  numbers  less  than  2000,  it  is  charged  with 


DEPARTMENT  OF  COMMERCE  AND  LABOR.  393 

the  inspection  of  all  persons  entering  this  country  on  any  part 
of  the  coast  or  border  line.  It  has  to  deal  with  people  repre- 
senting practically  all  the  nations  of  the  earth,  and  is  called 
upon  to  interpret  and  to  enforce  laws  containing  varying  pro- 
visions for  different  races.  Substantial  progress  has  been  made 
in  the  improvement  of  stations  at  the  different  ports.  At  Ellis 
Island,  where  the  larger  proportion  of  immigrants  enter,  the 
station  has  been  very  considerably  improved,  and  more  would 
have  been  done  if  the  recommendations  for  appropriations  had 
been  adopted.  In  San  Francisco  the  old  station  has  been  aban- 
doned, and  the  new  and  improved  station  on  Angel  Island  i» 
now  in  use.  At  Galveston  a  new  station  has  been  completed, 
and  will  be  put  in  use  as  soon  as  the  necessary  appropriation 
of  about  $15,000  for  furnishing  is  made.  In  Philadelphia  the 
new  station  will  be  occupied  within  a  few  days.  At  New  Orleans 
the  new  station  is  nearing  completion.  At  Boston  the  ground  has 
been  acquired  and  the  plans  for  a  new  station  have  been  approved. 
At  Charleston,  S.  C,  the  station  is  nearly  completed.  At  Balti- 
more the  acquisition  of  a  new  station  is  under  way.  At  Seattle 
the  station  has  been  enlarged  to  meet  the  wants  of  the  situation. 
Furthermore,  it  has  been  recommended  to  Congress  to  establish  a 
station  at  Chicago,  that  being  the  point  from  which  the  largest 
distribution  to  the  Middle  West  and  Northwest  is  had.  This  rec- 
ommendation is  based  upon  the  idea  that  it  is  wise  to  protect 
immigration  bound  for  the  interior,  as  far  as  may  be,  against  the 
dangers  and  temptations  to  which  immigrants  are  exposed  by  lack 
of  acquaintance  with  language  and  other  conditions  in  a  country 
new  to  them. 

With  respect  to  the  law,  it  may  be  said  that  every  provision 
directed  against  wrongdoing  has  been  strictly  enforced.  Under 
the  contract-labor  provision  large  penalties  have  been  recovered, 
and  numbers  of  wrongfully  imported  people  have  been  rejected 
or  deported.  The  white-slave  law  has  been  enforced  by  a  co- 
operation of  the  Department  of  Justice  and  the  Bureau  of  Im- 
migration, with  results  that  completely  demonstrate  the  wisdom 
of  the  new  legislation  upon  this  subject.  In  all  respects,  where 
the  law  deals  with  wrongdoing,  it  has  been  relentlessly  en- 
forced. On  the  other  hand,  where  the  provisions  of  the  law 
affect  people  suffering  from  misfortune,  the  effort  has  been  so 
to  construe  it  as  to  visit  the  least  possible  hardship  upon  the 
individual.  The  purpose  has  been  to  respect  as  far  as  possible 
the  position  and  the  feelings  of  those  who  have  already  become 
a  part  of  our  population,  in  order  to  encourage,  as  far  as  may 
be,  their  loyalty  and  devotion  to  their  adopted  country.  An  ex- 
amination of  the  character  of  the  immigration  shows  that  of 
the  very  large  numbers  who  enter  our  country,  aggregating  any- 
where from  eight  hundred  thousand  to  a  million  a  year,  by  far 
the  larger  proportion  have  occupations  the  pursuit  of  which  will 
substantially  contribute  to  the  well-being  of  our  country.  The  gen- 
eral impression  that  most  of  the  immigrants  remain  in  the 
congested  cities  is  based  upon  a  mistake.  The  census  investiga- 
tion will  show  that  in  several  States  there  are  more  foreign-born 
farm  owners  than  native.  In  a  great  many  other  States  the  per- 
centage of  foreign-born  farm  owners  to  native  runs  anywhere 
from  25  to  75  per  cent.  Furthermore,  the  same  investigation 
shows  that  the  foreign-born  farm  owners  bear  a  larger  propor- 
tion to  foreign-born  tenants  than  do  native  farm  owners  to 
native  tenants.  It  may  be  accepted,  therefore,  that  the  pioneer 
element  is  still  very  strongly  represented  in  the  immigration  of 
to-day.  Neither  should  it  be  overlooked  that  during  the  last 
year,  for  illustration,  over  300,000  emigrants  left  our  country. 

The  Division  of  Information  is  showing  better  and  better  re- 
sults from  year  to  year.  Its  efforts  to  distribute  immigration 
are  limited  practically  to  farm  labor  and  to  domestics,  about  the 
need  of  which  in  all  parts  of  the  country  there  is  no  question. 
The  chief  of  this  division  is  now  in  constant  communication  with 
the  labor  commissioners  of  the  several  States,  and  has  even 
gone  to  the  extent  of  having  stated  meetings  with  them  at  Wash- 
ington, in  order  that  the  needs  of  different  localities  and  the 
possibility  of  supplying  them  with  assistance  may  be  made  the 
subject  of  full  consideration  and  definite  plan. 

The  Division  of  Naturalization  has  been  completely  reorganized 


394  DEPARTMENT  OF  COMMERCE  AND  LABOR. 

under  the  new  system.  By  a  co-operation  between  it  and  the 
Department  of  Justice,  naturalization  may  now  be  said  to  be 
subjected  to  intelligent  supervision  and  control.  Not  only  are  the 
proceedings  leading  to  the  naturalization  of  a  citizen  subjected  to 
close  inspection,  but  even  after  naturalization  has  been  granted, 
proceedings  to  set  aside  naturalization  are  frequently  instituted 
upon  a  showing  that  misinformation  or  fraud  entered  into  the 
case. 

Coast  and  Geodetic  Survey. 

The  operations  of  this  bureau  may  be  generally  described  as 
the  "survey  of  the  coasts  of  the  United  States  and  of  coasts 
under  the  jurisdiction  of  the  United  States,  including  the  sur- 
vey of  rivers  to  the  head  of  tidewater  or  ship  navigation;  deep- 
sea  soundings,  temperature  and  current  observations  along  the 
coast  and  throughout  the  Gulf  Stream  and  Japan  Stream  flowing 
off  the  said  coasts ;  tidal  observations ;  the  necessary  resurveys ; 
the  preparation  of  the  Coast  Pilot;  continuing  researches  and 
other  work  relating  to  physical  hydrograpby  and  terrestrial  mag- 
netism and  the  magnetic  maps  of  the  United  States  and  adjacent 
waters,  and  the  tables  of  magnetic  declination,  dip.  and  intensity 
usually  accompanying  them,  astronomical  and  gravity  observa- 
tions." 

This  bureau  employs  14  steam  and  3  sailing  vessels,  and  a 
force  of  about  353  men.  Its  charts  and  reports  of  other  inves- 
tigations are  furnished  to  the  Navy  and  to  all  vessels  of  the 
merchant  marine,  and  thus  constitute  the  chief  guide  to  all  navi- 
gators. 

Bureau  of  Lighthouses. 

This  bureau  is  more  especially  in  charge  of  all  lighthouses, 
light  boats,  buoys  and  other  aids  to  navigation.  It  employs  about 
5500  men,  and  has  under  its  control  about  110  vessels,  of  which 
45  are  steam  and  2  gasoline  vessels;  64  lightships,  33  of  which 
are  propelled  by  steam ;  lighthouses  numbering  775,  and  aids  to 
navigation  of  every  grade,  numbering  about  12,000.  As  to  the 
latter  particularly,  constant  experiments  and  improvements  are 
in  progress. 

This  bureau  was  reorganized  in  1910,  and  by  the  elimination  of 
a  cumbersome  system,  and  proper  concentration,  an  annual  saving 
of  several  hundred  thousand  dollars  has  been  effected. 

Bureau  of  Navigation. 

The  Commissioner  of  Navigation  has  general  superintendence 
of  the  commercial  marine  and  merchant  seamen  of  the  United 
States.  He  is  charged  with  the  decision  of  all  questions  relating 
to  the  issue  of  registers,  enrollments,  and  licenses  of  vessels; 
has  supervision  of  the  laws  relating  to  the  measurement  of  ves- 
sels, and  of  all  questions  of  interpretation  growing  out  of  the 
execution  of  the  laws  relating  to  these  subjects,  and  to  the  col- 
lection of  the  tonnage  tax.  He  is  also  charged  with  the  en- 
forcement of  the  wireless  system,  which  was  authorized  by  Con- 
gress in  1910,  and  which  has  been  strengthened  by  amendment 
since  then.  A  complete  system  is  now  in  operation.  During 
the  last  two  years  the  commissioner  has  more  especially  made 
valuable  contributions  to  the  discussion  of  the  question  of  tonnage 
tolls  in  the  Panama  Canal. 

Steamboat-Inspection  Service. 

This  bureau  is  more  especially  charged  with  the  inspection  of 
the  condition  and  equipment  of  all  vessels  belonging  to  the 
merchant  marine  on  our  rivers  and  lakes  or  entering  our  ports. 
It  is  generally  admitted  that  our  inspection  laws  are  abreast 
with  the  best  systems  of  other  countries,  and  with  respect  to  the 
regulations  made  by  supervising  inspectors,  it  is  safe  to  say  that 
they  are  in  advance  of  similar  regulations  of  almost  all  other 
countries.  During  the  last  year,  out  of  314,708,885  passengers 
carried  by  water,  392  lives  were  lost.  This  includes  every  loss 
from  any  cause,  and  is  perhaps  the  best  evidence  of  the  general 
condition  of  our  maritime  service. 


JAMES  SCHOOLCRAFT  SHERMAN 


James  Schoolcraft  Sherman,  the  Republican  nominee  for  Vice- 
President,  was  born  October  25,  1855,  in  the  same  ward  of  the 
city  of  Utica  in  which  he  now  lives. 

When  he  was  two  years  old  his  father  moved,  with  his  family, 
to  a  farm  two  miles  south  of  the  village  of  New  Hartford.  Here 
they  lived  until  1868.  In  the  fall  of  1868  Mr.  Sherman's  parents 
purchased  a  house  in  the  village  of  New  Hartford,  where  they 
continued  to  live  until  the  death  of  Mr.  Sherman's  mother,  in 
1896,  his  father  having  died  the  year  previous. 

Mr.  Sherman  lived  with  his  parents  until  1881,  when  he  was 
married  at  East  Orange,  N.  J.,  to  Carrie  Babcock,  taking  up  his 
residence  in  the  Seventh  Ward  of  the  city  of  Utica,  two  blocks 
from  where  he  now  resides. 

While  he  lived  on  his  father's  farm  he  attended  the  district 
school,  half  a  mile  from  home,  and,  when  old  enough  to  do  so,  he 
assisted  in  doing  such  work  on  the  farm  as  a  boy  of  his  years 
would  be  capable  of  doing.  After  removing  to  the  village  of  New 
Hartford  he  attended  the  public  school  in  that  town,  and  later  at- 
tended the  Utica  Academy.  Later  he  attended  the  Whitestown 
Seminary,  a  preparatory  school  situated  in  the  village  of  Whites- 
boro,  four  miles  distant.  From  this  school  young  Sherman  entered 
Hamilton  College  in  the  fall  of  1874,  and  was  graduated  in  1878. 
He  gained  a  considerable  reputation  as  a  declaimer  in  both  school 
and  college,  carrying  off  the  first  honors  in  declamation  at  the  end 
of  his  Freshman  year.  He  also  enjoyed  a  reputation  as  a  debater, 
and  was  one  of  six  chosen  from  his  class  at  the  conclusion  of  his 
Senior  year  to  contest  for  prizes. 

After  leaving  college  Mr.  Sherman  began  at  once  the  study 
of  law  in  the  office  of  Beardsley,  Cookinham  &  Burdick,  at 
Utica,  N.  Y.  He  was  admitted  to  practice  two  years  later,  and 
at  once  formed  a  partnership  with  Hon.  H.  J.  Cookinham,  his 
brother-in-law,  and  former  Mayor  John  G.  Gibson.  He  contin- 
ued the  practice  of  law  in  partnership  with  Mr.  Cookinham,  with 
various  changes  in  the  personnel  of  the  firm,  until  January  1, 
1907,  when  he  withdrew  ae  a  member  of  the  law  firm. 

In  1899,  with  other  Utica  business  men,  he  organized  the 
Utica  Trust  and  Deposit  Company,  now  one  of  the  leading  banks 
of  central  New  York,  and  was  chosen  as  its  president,  which 
position  he  has  since  occupied.  The  New  Hartford  Canning  Com- 
pany was  organized  in  1881  by  his  father  and  another  gentleman, 
and  after  his  father's  death  he  became  president  of  the  com- 
pany. He  is  also  interested,  in  various  ways,  in  many  other 
local  enterprises. 

Mr.  Sherman's  first  active  work  in  politics  was  the  year  suc- 
ceeding his  graduation  from  college,  when  he  spoke  a  few  times 
in  different  parts  of  the  county  in  advocacy  of  the  election  of 
Alonzo  B.  Cornell,  Republican  candidate  for  Governor,  making 
his  first  speech  in  the  town  of  his  residence.  During  the  last 
fifteen  years  Mr.  Sherman  has  campaigned  in  various  parts  of 
the  State,  having  spoken  in  most  of  the  important  cities  and 
in  a  great  many  minor  places,  as  well  as  in  half  a  dozen  or 
more  other  States.  During  various  campaigns  he  has  spoken 
in  substantially  every  town  in  Oneida  and  Herkimer  counties. 
He  was  chosen  Mayor  of  Utica  in  1884.  The  city  was  then,  as 
now,  normally  Democratic,  but  he  was  elected  by  a  substantial 
Republican  majority.  At  the  end  of  his  term,  which  was  for 
one  year,  he  declined  a  unanimous  renomination. 

He  was  first  named  for  Congress  in  1886,  the  contest  for  the' 
nomination  being  quite  a  spirited  one,  there  being  half  a  dozen 
candidates,  his  chief  competitor  being  the  Hon.  Henry  J.  Cogges- 
hall,  then  State  Senator  from  that  district. 

395 


396  JAMES  SCHOOLCRAFT  SHERMAN. 

Mr.  Sherman  was  renominated  each  succeeding  two  years  by 
acclamation  until  1896,  when  there  was  a  contest  for  the  nomi- 
nation, his  competitors  being  Hon.  Seth  G.  Heacock,  of  Herkimer, 
now  State  Senator,  and  John  I.  Sayles,  of  Rome,  Oneida  County. 
Since  that  time  he  has  been  nominated  by  acclamation  each  suc- 
ceeding two  years  until  the  present  time.  He  presided  over  the 
State  Convention  in  1895  as  temporary  chairman,  and  over  the 
State  Conventions  of  1900  and  1908  as  permanent  chairman.  He 
was  secretary  of  the  Oneida  County  Republican  Committee  in 
1882,  «nd  for  the  three  following  years  was  chairman  of  that 
committee.  He  was  a  delegate  to  the  Republican  National  Con- 
vention in  1892. 

In  1898  Mr.  Sherman  was  appointed  by  President  McKinley 
a  member  of  the  Board  of  General  Appraisers  of  the  city  of 
New  York,  and  the  nomination  was  confirmed  by  the  Senate. 
It  was  his  desire,  at  the  time,  to  accept  the  appointment,  but 
political  and  business  friends  at  home,  including  the  Chamber 
of  Commerce  and  the  Republican  County  Committee,  passed  reso- 
lutions and  appointed  a  committee  to  wait  upon  him  and  urge 
him  not  to  retire  as  a  member  of  Congress,  and,  in  conformity 
with  the  desires  of  his  constituents,  he  declined  the  appointment. 

Two  years  later  he  was  tendered  by  the  Steering  Committee 
of  the  Senate  the  position  of  Secretary  of  the  United  States 
Senate.  Realizing  that  the  wishes  of  his  constituents  had  not 
changed  within  the  two  years,  he  declined  this  position. 

Mr.  Sherman,  early  in  his  congressional  career,  became  a 
prominent  member  of  the  House,  and  during  his  last  few  terms 
of  Congress  has  been  numbered  among  the  leaders.  His  par- 
liamentary ability  was  early  recognized,  and,  perhaps,  no  other 
member  was  so  frequently  called  to  the  chair  to  preside  over 
the  Committee  of  the  Whole.  He  was  one  of  the  closest  friends 
of  Speaker  Reed,  as  he  was  of  Speaker  Henderson,  and  has  been, 
and  is,  of  Speaker  Cannon. 

Mr.  Sherman  was  a  candidate  for  the  speakership  when 
Thomas  B.  Reed  retired.  For  twelve  years  he  was  chair- 
man of  the  Committee  on  Indian  affairs,  and  his  work  at  the 
head  of  that  committee  has  received  unstinted  praise  from  all 
concerned  in  the  work  of  the  committee,  without  regard  to  party. 
He  was  also  a  member  of  the  Gommittee  on  Rules  and  of  Inter- 
state and  Foreign  Commerce. 

Mr.  Sherman  has  been  a  regular  attendant  at  the  Dutch  Re 
form  Church  in  Utica  since  his  marriage,  in  1881.  Prior  to  that 
time  he  had  been  attending  the  Presbyterian  Church  at  New 
Hartford.  For  five  years  just  passed  he  has  been  treasurer 
of  his  church,  and  for  three  years  chairman  of  the  Board  of 
Trustees. 

Mr.  Sherman's  service  as  Vice-President,  and  thus  as  presid- 
ing officer  of  the  Senate,  has  personally  endeared  him  to  those 
with  whom  he  has  come  in  contact  in  official  and  personal  life. 
Alert,  vigorous,  a  keen  and  impartial  presiding  officer,  he  has 
commanded  the  respect  of  every  member  of  that  dignified  body, 
the  Senate — while  his  bigness  of  heart  and  kindly  personal  char- 
acteristics in  the  everyday  affairs  of  life  have  given  him  the 
genuine  affection  of  all  with  whom  he  has  come  in  contact  during, 
as  well  as  prior  to,  his  Vice-Presidential  term. 


I  do  not  apologize  for  my  position  touching;  the  protective 
policy.  The  Wilson  hill  was  enacted  into  law.  Some  of  us 
recalled  what  that  hill  did,  or  was  the  most  natnral  factor 
in  doing.  It  closed  and  bankrupted  the  entire  industries 
of    the    country.— Ex-Speaker    Cannon. 

The  Democrats  are  a  party  having;  no  solidarity,  uniting;  ele- 
ments that  are  as  unmixable  as  oil  and  water,  and  when  they 
come  to  make  a  government,  should  they  ever  be  elected  to  power, 
the  administration  would  become  as  nerveless  as  a  man  stricken 
with  paralysis,  because  the  radical  difference  between  the  ele- 
ments necessary  to  make  up  the  party  would  be  so  great  as  to 
produce  perfect  stagnation  in  legislative  provision  for  the  emer- 
gencies which  might  arise.  The  Democratic  party  to-day,  as 
organized,  is  nothing  but  organized  incapacity.  Neither  element 
of  the  party  would  have  a  sense  of  responsibility  strong  enough 
to  overcome  its  antagonism  to  the  principles  upheld  by  the  other 
faction  were  it  to  come  into  power.— Hon.  W  in.  11.  Tuft,  at  Mont- 
pelier,    Vt. 


THE  SIXTY-SECOND  CONGRESS. 


The  Sixty-Second  Congress,  so  far  as  it  may  be  measured 
by  the  work  of  the  two  long  sessions  that  have  been  held 
since  the  adjournment  of  the  preceding  Congress  on  March 
4th,  3  911,  will  establish  a  new  record  for  lack  of  achievement, 
for  t  Ae  reckless  subversion  of  legislative  activity  to  the  pur- 
posrs  of  politics  and  for  radical  and  hasty  attempts  to  make 
over  the  machinery  of  government  through  legislative  riders 
on   appropriation   bills. 

The  present  Congress  began  with  the  extraordinary  session 
convened  at  the  call  of  President  Taft  on  April  4,  1911, 
marking  the  restoration  of  the  Democratic  party  to  power  in 
the  House  for  the  first  time  in  sixteen  years.  There  the 
Democrats,  in  control  of  merely  one  section  of  the  machinery 
of  the  Government,  instead  of  following  the  usual  negative 
tactics  of  a  minority,  by  devoting  their  energies  to  blocking 
constructive  legislation  proposed  by  the  Republican  Party, 
which  still  controlled  the  executive  branch  of  the  Government 
and  one  of  the  two  legislative  bodies,  took  charge  of  the 
legislative  machinery  and  set  about  to  formulate  a  policy  of 
general  legislation  with  a  free  hand. 

In  the  Senate  the  Republican  majority,  usually  ample,  was 
cut  down  to  such  an  extent  that  the  Democrats  there  also 
were  able  to  carry  out  some  of  their  purposes  by  means  of  a 
voting  coalition  with  certain  of  the  Republicans. 

To  a  large  extent,  therefore,  the  work  of  the  two  sessions 
of  the  present  Congress  may  be  assumed  to  reflect  the  com- 
petency or  otherwise  of  the  Democratic  party  to  manage  the 
affairs  of  the  Government  and  to  indicate  what  may  be 
expected  of  a  Democratic  majority,  should  the  complete  con- 
trol of  the  Government  pass  into  their  hands. 

In  the  mere  matter  of  length  the  two  sessions  have  been 
unusual.  And  in  the  mere  matter  of  bulkiness  the  "Con- 
gressional Record,"  the  chronicle  of  the  deliberations — if, 
by  a  stretch  of  verbal  license,  the  incessant  outpouring  of 
political  oratory  and  debate  can  be  so  designated — of  the 
legislature  is  extraordinary.  A  series  of  thick  volumes,  esti- 
mated to  contain  more  than  20,000,000  words  uttered  or 
professed  to  have  been  uttetred  during  the  proceedings  of 
both  Houses,  stands  as  a  monument  to  the  most  verbose 
Congress  in  history. 

But  the  positive  results  achieved  by  the  Sixty-second  Con- 
gress in  the  form  of  laws  placed  upon  the  statute  books  are 
in  inverse  ratio  to  the  amount  of  time  and  talk  required  to 
achieve  them.  The  important  laws  enacted,  which  are  of 
general  interest,  may  be  counted  on  the  fingers  of  two  hands. 
Other  important  measures  were  successfully  blocked  by  the 
Democrats,  and  a  number  are  still  pending. 

The  record  of  the  Congress  is  written  in  the  following  laws: 

The  passage  of  the  Canadian  reciprocity  bill,  subsequently 
rejected  by  Canada.  When  the  Republicans  of  the  Senate 
sought  to  repeal  the  act  and  withdraw  the  offer  the  Democrats 
insisted  that  it  should  remain  in  force,  although  ineffective 
through  the  failure  of  Canada. 

The  reapportionment  of  the  House  of  Representatives  in 
accordance  with  the  last  census — a  measure  drafted  by  a 
Republican  committee   during  the  preceding  Congress. 

A  law  requiring  publicity  of  campaign  contributions.  The 
bill  originated  in  the  Democratic  House,  but  was  practically 
redrafted  by  the  Republicans  in  the  Senate,  who  made  it 
applicable  to  primary  elections  and  added  other  important 
provisions  evaded  by  the  House.  The  House  accepted  the 
more  stringent  Republican  measure  with  obvious  reluctance. 

397 


398  THE  SIXTY-SECOND  CONGRESS. 

The  resolution  providing  for  the  admission  of  Arizona  and 
New  Mexico  to  statehood  approved  after  the  provision  for  the 
recall  of  judges  had  been  stricken  out  upon  the  insistence  of 
President  Taft  as  expressed  in  his  veto  message. 

The  establishment  of  a  Children's  Bureau  in  the  Department 
of  Commerce  and  Labor — a  non-partisan  measure  designed  to 
contribute  to  the  solution  of  the  problem  of  child  labor. 

The  imposition  of  a  prohibitive  tax  on  the  manufacture  of 
phosphorus  matches  taken  up  in  the  House  on  Republican 
initiative  and  urged  in  a  message  by  President  Taft. 

The  three-year  homestead  act,  reducing  the  time  in  which 
the  settler  might  perfect  title  to  land  and  modifying  the 
restrictions  with  respect  to  residence,  the  change  being  neces- 
sary by  reason  of  the  less  fertile  character  of  public  land 
remaining  open  to  settlement.  This  measure,  designed  to 
encourage  the  settlement  of  farmers  on  lands  remaining  unoc- 
cupied in  the  West,  and  to  discourage  the  exodus  of  Americans 
to  Canada,  was  formulated  by  the  Republicans  of  the  Senate. 

The  age  and  service  pension  law,  a  Republican  measure, 
carrying  an  increase  of  $30,000,000  annually  in  pensions, 
substituted  for  the  so-called  dollar-a-day  pension  bill,  passed 
by  the  House  of  Representatives,  which  represented  an  increase 
of  $75,000,000  and  probably  would  have  necessitated  a  bond 
issue  had  it  become  a  law. 

The  eight-hour  bill,  limiting  hours  of  labor  on  all  govern- 
ment work  except  the  Panama  Canal — a  non-partisan  measure. 

Various  bills  relating  to  wireless  telegraphy,  the  most 
important  of  which  is  the  administration  measure  for  the 
regulation  of  radio-telegraphy. 

A  bill  providing  for  the  creation  of  an  industrial  commis- 
sion for  the  investigation  of  the  relations  between  labor  and 
capital,  a  non-partisan  method  of  ascertaining  the  causes  and 
devising  remedies  for  the  labor  problem,  suggested  by  Presi- 
dent Taft. 

The  Panama  Canal  bill,  as  agreed  upon  by  the  two  Houses, 
and  submitted  to  the  President,  provides :  for  the  government 
of  the  Canal  Zone  by  a  single  head,  to  be  known  as  the 
governor  of  the  Canal  Zone,  to  be  appointed  by  the  President. 
The  tolls  for  ships  other  than  American  vessels  engaged  in 
the  coastwise  trade  are  to  be  fixed  by  the  President,  but  not 
to  exceed  $1.25  per  net  registered  ton  and  not  to  be  less  than 
75  cents  in  any  form  of  tonnage,  the  tolls  for  passengers  not 
to  exceed  $1.50.  It  prohibits  railroad-owned  steamships  from 
operating  through  the  Panama  Canal,  or  elsewhere  if  held  by 
the  Interstate  Commerce  Commission  to  be  operated  on  com- 
peting routes  with  railroads,  and  gives  the  Interstate  Com- 
merce Commission  jurisdiction  over  joint  rail  and  water  routes 
through  Panama  Canal  or  otherwise,  to  establish  physical  con- 
nections between  railroads  and  water  carriers,  and  to  estab- 
lish through  routes  and  maximum  joint  rates  between  and 
over  rail  and  water  routes.  It  also  authorizes  the  granting 
of  American  registry  to  foreign-built  ships  if  owned  by  Ameri- 
cans and  admits  materials  for  construction  and  repair  of  ships 
free  of  duty ;  prohibits  trust-owned  ships  from  using  the  Pana- 
ma Canal ;  and  remits  tolls  to  American  ships  engaged  in  the 
coastwise  trade. 

The  following  important  resolutions  were  adopted  by  both 
Houses: 

A  resolution  proposing  an  amendment  to  the  Constitution 
providing  for  the  election  of  Senators  by  popular  vote.  The 
resolution  was  first  adopted  by  the  House  in  such  form  that 
it  practically  disfranchised  the  negro  voter  and  deprived  the 
Federal  Government  of  any  authority  whatever  to  supervise 
the  election  of  Senators.  The  Senate  eliminated  the  provision 
nullifying  the  supervisory  authority  of  the  Federal  Govern- 
ment over  the  elections,  and  the  Democrats  agreed  to  the 
simple  resolution  only  after  it  had  remained  in  conference  for 
months. 

A  resolution  giving  notice  of  the  termination  of  the  Russian 
treaty  of  1834.  The  subject  was  under  consideration  by  the 
State   Department   when    the    House   passed   a   resolution    on 


THE  SIXTY-SECOND  CONGRESS.  399 

this  subject,  but  in  a  form  calculated  to  arouse  the  resentment 
and  hostility  of  the  Russian  Government  and  aggravate  instead 
of  alleviate  the  difficulties  of  those  whom  it  most  concerned. 
The  serious  situation  precipitated  by  the  House  might  have 
led  to  disastrous  consequences  had  not  President  Taft  inter- 
vened, and  upon  his  own  initiative  given  notice  of  the  inten- 
tion of  the  United  States'  to  terminate  the  treaty  without 
closing  the  door  upon  the  possibility  of  negotiating  a  new  one 
to   supplant  it. 

A  resolution,  suggested  by  the  President,  to  prevent  the 
smuggling  of  arms  and  munitions  of  war  across  the  Mexican 
border  and  the  fomenting  of  rebellion  from  the  American  side. 

A  resolution  to  extend  the  Burton  law  for  the  preservation 
of  Niagara  Falls. 

A  resolution  suggesting  an  international  maritime  con- 
ference to  take  up  the  questions  raised  by  the  Titanic  disaster. 

A  resolution  adopted  by  the  Senate,  upon  the  initiative  of 
the  Republican  members  of  the  Foreign  Relations  Committee, 
formulated  the  doctrine,  growing  out  of  the  Magdalena  Bay 
incident,  that  the  United  States  would  resent  the  occupation 
of  military  or  naval  base  on  the  American  continents  by  cor- 
porations under  the  control  of  a  foreign  government. 

The  Senate  disposed  of  the  Lorimer  case  by  declaring  the 
seat  in  question  was  vacant,  and  that  Lorimer  had  not  been 
legally   elected. 

The  House  began  impeachment  proceedings  against  Judge 
Archbald,  of  the  Commerce  Court,  the  charges  having  been 
brought  to  its  attention  after  an  investigation  by  the  Depart- 
ment of  Justice,  and  also  investigated  charges  against  Judge 
Hanford,   who   resigned. 

There  was  the  usual  number  of  private  bills  and  other 
measures  of  a  non-partisan  character,  in  addition  to  the  5045 
private  pension  bills  (3488  of  which  originated  in  the  House), 
passed  up  to  within  a  short  time  before  the  adjournment  of 
the  second  session.  But  the  measures  cited  above  represent 
the  important  positive  achievements  of  Congress  during 
the  two  long  sessions,  which  extended  over  many  months,  and 
indicate  the  part  played  by  the  Democrats  in  the  framing  of 
constructive  legislation. 

In  the  treatment  of  domestic  problems  and  in  their  attitude 
toward  questions  arising  in  the  field  of  foreign  relations  the 
Democrats  of  the  Senate  assumed  an  obstructive  and  partisan 
attitude.  This  was  exemplified  especially  in  the  case  of  the 
general  arbitration  treaties  with  Great  Britain  and  France 
and  in  the  case  of  the  treaties  with  Nicaragua  and  Honduras. 
The  entire  strength  of  the  Democrats  in  the  Senate  was 
exerted  toward  amending  the  arbitration  agreements  to  such 
an  extent  that  they  were  all  but  valueless,  and  it  was  due  to 
them  that  this  great  step  forward  in  the  movement  toward 
universal  peace  and  the  substitution  of  arbitration  for  war 
was  not  taken. 

Similarly  the  treaties  negotiated  with  the  Central  American 
Republics,  Nicaragua  and  Honduras,  for  the  purpose  of  remov- 
ing the  greatest  occasion  for  revolution  and  giving  the  United 
States  authority  to  exert  its  influence  in  the  direction  of 
orderly  financial  administration,  the  effectiveness  of  which 
has  been  clearly  demonstrated  in  the  case  of  Santo  Domingo, 
remain  unratified  because  of  Democratic  opposition. 

Several  treaties  and  agreements  of  less  importance  were 
ratified  by  the  Senate,  among  which  were  a  copyright  agree- 
ment with  Hungary,  an  agreement  relating  to  the  North 
Atlantic  fisheries,  and  a  convention  for  the  protection  of 
industrial  property. 

Some  of  the  more  important  measures  pending  on  August 
19th  were: 

A  bill  providing  for  establishment  of  a  Department  of  Labor, 
passed   in  the   House  and   favorably  reported  in  the  Senate; 

A  bill  restricting  immigration,  founded  upon  the  report  of 
the  Immigration  Commission,  passed  by  the  Senate,  but  held 
up  by  the  House; 

A  bill  to  prohibit  corporations  from  making  campaign  con- 


400  THE  SIXTY-SECOND  CONGRESS. 

tributions  and  limiting  the  contributions  of  individuals,  favor- 
ably reported  in  the  Senate; 

A  bill  revising  the  public  printing  laws  and  achieving  econ- 
omies in  the  government  printing  office,  passed  in  the  Senate, 
but  held  up  in  the  House; 

A  measure  for  the  establishment  of  a  Parcel's  Post  system, 
which  was  made  a  part  of  the  Post-office  Appropriation  bill, 
and  is  still  in  Conference  Committee  when  this  work  goes  to 
press. 

A  bill  creating  a  legislative  assembly  for  the  Territory  of 
Alaska; 

A  bill  extending  the  authority  of  the  Bureau  of  Mines  to 
make  mineral  investigations; 

The  anti-injunction  bill,  hastily  passed  by  the  House  in 
such  form  as  to  prompt  the  Senate  committee  to  give  extensive 
hearings  on  the  question; 

The  contempt  bill,  granting  jury  trials  in  cases  of  indirect 
contempt,  passed  by  the  House; 

A  seamen's  bill  to  abolish  involuntary  servitude  on  the  high 
seas. 

A  resolution  proposing  an  amendment  to  the  Constitution, 
to  limit  those  elected  to  or  exercising  the  powers  of  the  office 
ofPresident  of  the  United  States  to  a  single  term  of  six  years, 
favorably  reported  by  the  Senate. 

A  bill  establishing  a  government  for  the  Canal  Zone,  and 
providing  for  the  operation  and  maintenance  of  the  Panama 
Canal. 

A  bill  to  carry  into  effect  the  international  agreement  to 
protect  fur  seals  by  the  prevention  of  pelagic  sealing.  Largely 
through  the  exertions  of  the  Democrats  in  the  Senate  this  bill 
was  amended,  in  violation  of  the  spirit  of  the  treaty,  to  pro- 
vide for  a  closed  season  of  ten  years. 

The  most  signal  failure  of  the  Democratic  House  was  the 
delay  of  the  employers'  liability  and  workmen's  compensation 
bill,  framed  by  a  commission  appointed  for  that  purpose,  urged 
by  President  Taft  in  a  special  message  and  passed  by  the 
Senate  despite  determined  Democratic  opposition.  The  meas- 
ure was  drafted  only  after  a  most  painstaking  investigation, 
and  was  approved  not  only  by  the  Democratic,  but  by  the 
Republican  member  of  the  commission  and  by  the  railroads 
and  the  great  organizations  of  railway  employes,  as  a  step 
to  afford  relief  to  injured  workmen  and  to  obviate  the  delay 
in  securing  compensation  for  injuries  through  the  courts. 
Southern  Democrats,  however,  opposed  the  measure  in  the 
Senate  on  the  pretext  that  further  time  was  required  for  its 
consideration,  and  the  bill  was  pigeonholed,  for  the  session 
at  least,  by  the  Democratic  committee  in  the  House.  This 
measure  is  generally  regarded  as  the  most  important  piece  of 
constructive  legislation  undertaken  by  the  present  Congress. 

The  record  of  the  Democratic  party  in  the  present  Congress, 
meager  in  constructive  legislation  and  conspicuous  for  opposi- 
tion to  important  public  measures,  is  written  more  particu- 
larly in  the  failures  of  the  numerous  "investigating  com- 
mittees" of  the  House,  the  purpose  of  which  was  to  unearth 
records  damaging  to  the  Republican  administration;  the  pop- 
gun tariff  measures  framed  for  the  purpose  of  "putting  the 
President  in  a  hole,"  without  consideration  for  the  industries 
and  the  workmen  they  affected;  and  the  radical  legislative 
riders  attached  to  appropriation  bills  which  were  to  have 
been  clubbed  through  the  Senate  under  threat  of  bringing 
the  Government  to  a  standstill  for  lack  of  funds. 

As  outlined  in  these  measures  and  the  reports  of  some  of 
the  committees,  the  striking  points  of  the  Democratic  policy 
so  formulated  are  as  follows: 

The  abolition  of  the  Tariff  Board  and  the  return  to  the  old 
haphazard  method  of  framing  tariff  measures; 

The  reduction  of  the  Navy  by  the  refusal  to  authorize  the 
construction  of  new  battleships; 

The  reduction   of  the  Army  by  five  regiments  of  cavalry; 

A  plan  to  place  civil  service  employes  under  a  five-year 
tenure  of  office; 

The  abolitioa  of  the  commerce  court,  characterized  as  a 
legislative  recall  of  judges; 


THE  SIXTY-SECOND  CONGRESS.  401 

Placing  sugar  on  the  free  list  at  a  loss  of  $60,000,000  in 
annual  revenue  and  the  sacrifice  of  the  American  sugar  indus- 
try ;  * 

An  excise  tax  on  industry  or  earning  capacity  to  make  up 
the  deficiency  in  sugar  revenues  modeled  on  the  corporations 
tax  law. 

Various  drastic  methods  of  legislating  the  trusts  out  of 
existence  of  a  widely  divergent  and  conflicting  character. 

THE    HOUSE    "INVESTIGATIONS." 

The  history  of  the  numerous  investigations  undertaken  by 
the  House  with  the  purpose  of  bringing  to  light  facts  dis- 
crediting the  Republican  Party  and  the  Taft  Administration 
may  be  summarized  as  follows: 

Investigation  of  the  "steel  trust,"  which  disclosed  no  facts 
of  importance  that  were  not  already  in  the  possession  of  the 
Department  of  Justice  and  that  had  not  been  incorporated  in 
the  Government's  b*ill  asking  for  the  dissolution  of  the  com- 
bination. This  resulted  in  a  variety  of  reports  and  the  sug- 
gestion of  drastic  laws  for  the  cure  of  the  trust  evil.  Cost, 
$39,000. 

Investigations  by  the  Committee  on  Expenditures  in  the 
Interior  Department,  the  so-called  Graham  committee,  the 
most  widely  advertised  of  which  was  the  inquiry  into  the  Con- 
troller Bay  controversy  founded  upon  a  fake  letter.  This 
inquiry  died  of  inanition  as  soon  as  the  House  investigators 
discovered  they  had  been  duped  and  no  report  was  made. 
Cost,    $10,472. 

Investigation  of  the  "sugar  trust,"  the  result  of  which  was 
a  report  that  has  served  no  purpose  whatever,  and  is  now  a 
part  of  the  buried  archives  of  the  Democratic  House.  Cost, 
$11,487. 

Investigation  of  the  Post  Office  Department,  centering 
mainly  upon  the  charges  made  by  the  Lewis  Publishing  Com- 
pany, of  St.  Louis,  six  years  earlier,  and  subsequently  dis- 
carded.    Cost,  $7608. 

Investigation  of  the  "money  trust,"  for  which  a  total  of 
$50,000  has  been  appropriated  by  the  House,  of  which  $8790 
has  been  expended  before  the  investigation  is  fairly  launched 
The  House  itself  hesitated  long  to  undertake  this  chase  of  the 
"money  devil,"  and  after  much  dissension  sought  to  persuade 
the  Senate  to  agree  to  a  resolution  conferring  power  on  the 
committee  to  ascertain  under  threat  of  penalties  and  publish 
the  financial  transactions  of  national  banks. 

Investigation  of  the  trust  question  by  the  Judiciary  Com- 
mittee, for  which  $25,000  has  been  appropriated.  Of  this 
amount  $9189  has  been  expended.  This  includes  the  amount 
required  for  the  investigation  of  the  charges  against  two 
federal  judges.  The  trust  inquiry  has  not  yet  been  under- 
taken. 

Investigation  of  the  so-called  shipping  trust  by  the  Com- 
mittee on  Merchant  Marine  and  Fisheries,  for  which  $25,000 
has  been  authorized.  Of  this  amount,  $32  56  has  already  been 
expended,  but  the  evidence  brought  to  light  by  the  investi- 
gation is  nil. 

Investigation  of  the  taxation  and  business  systems  of  the 
District  of  Columbia,  for  which  $15,000  was  appropriated. 
Of  this  amount  $47  32  has  been  expended. 

Investigation  of  the  so-called  Wiley-McCabe  controversy  and 
the  Everglades  controversy  by  the  Committee  on  Expenditures 
in  the  Department  of  Agriculture,  which  has  already  spent 
$3216  without  achieving  any  results  of  apparent  value  either 
to  Congress  or  to  themselves. 

Other  committees  on  expenditures  in  the  various  executive 
departments  each  undertook  inquiries  in  the  hope  of  attracting 
public'  attention  to  their  members  and  of  casting  discredit 
upon  government  officials  of  the  present  and  former  admin- 
istrations. The  most  typical  example  of  these  was  the  inquiry 
into  the  affairs  of  the  State  Department,  the  only  tangible 
result  of  which  was  to  cast  a  reflection  upon  the  memory  of 
the  late  John  Hay,  Secretary  of  State,  without  reason  or  proof. 


402  "  THE  SIXTY-SECOND  CONGRESS. 

Most  of  these  minor  committee  investigations,  which  were 
begun  with  a  flourish  of  trumpets  and  the  promise  of  sensa- 
tions, were  discontinued  after  a  few  weeks,  the  members  being 
glad  enough  apparently  to  permit  the  public  to  forget  that 
they  had  ever  been  undertaken.  These  minor  investigations 
cost  in  the  neighborhood  of  $5000. 

In  money  actually  expended  up  to  the  present  time,  there- 
fore, the  so-called  "sm«lling"  committees  of  the  House  cost 
the  people  of  the  United  States  a  trifle  less  than  $103,000 
in  actual  expenditures  by  the  committees.  This  amount,  how- 
ever, represents  but  a  small  part  of  the  actual  expense  to 
the  Government.  Considering  the  time  of  the  members  of 
the  House  devoted  to  this  vain  search  for  sensations  and 
scandals,  the  vast  amount  of  valueless  testimony  printed  by 
the  government  printing  office,  the  hire  of  clerks,  stenog- 
raphers and  others  not. directly  paid  out  of  the  sums  appro- 
priated for  the  investigations,  the  total  cost  to  the  people  of 
the  United  States  of  the  numerous  probes  may  be  safely  esti- 
mated to  have  been  in  the  proximity  of  $500,000. 

The  end  is  not  yet.  The  trust  investigation  has  not  been 
begun.  The  chase  of  the  *  'money-devil"  is  not  yet  on.  But 
since  the  apparent  occasion  for  which  these  investigations 
were  undertaken,  the  unearthing  of  campaign  material,  has 
all  but  passed,  it  is  probable  that  the  anxiety  of  the  various 
committees  of  the  House  to  rake  the  dead  ashes  of  history  in 
order  to  find  something  of  scandal  or  discredit  with  which  to 
conduct  their  fight  against  the  Republican  administration  will 
cool  and  that  the  probing  will  come  to  an  end. 

At  one  time  there  were  no  less  than  twenty  of  these  "smell- 
ing" committees  of  the  House  of  Representatives  at  work. 
Reports  and  rumors,  no  matter  how  old,  were  seized  upon  with 
avidity  to  provide  occasion  for  summoning  government  officials 
to  come  before  them  and  testify  under  the  imputation  that  they 
or  their  predecessors  had  been  conducting  the  affairs  of  their 
offices  improperly.  Special  agents  were  employed  to  go  up 
and  down  the  country  on  a  still  hunt  for  persons  who  con- 
sidered themselves  aggrieved  at  the  hands  of  one  or  another 
department  of  the  Government.  Charges  made  years  before, 
despite  the  fact  that  they  had  in  most  cases  been  carefully 
investigated  and  found  without  basis,  were  grasped  eagerly 
and  reinvestigated  by  the  House  committees  in  the  hope  that 
some  irregularity  or  injustice  on  the  part  of  the  Administra- 
tion might  be  shown. 

Never  before  has  an  administration  undergone  such  an 
extraordinary  scrutiny,  and  never  before,  probably,  has  a 
scrutiny  of  such  general  proportions  achieved  more  insig- 
nificant results.  They  have  been  permitted  to  drift  unnoticed 
back  into  the  dim  region  of  the  forgotten  past  by  the  Demo- 
crats who  have  undertaken  them,  without  comment  upon  what 
they  failed  to  achieve.  It  is  not  improbable,  however,  that, 
if  more  proof  is  required,  the  most  compelling  evidence  of  the 
integrity  of  the  Republican  Administration  is  the  absolute 
failure  of  the  orgy  of  Democratic  investigation  to  bring  to 
light  anything  that  casts  discredit  upon  the  Republican  admin- 
istration of  the  Government.  And  the  spectacular  political 
diversion  of  hunting  down  the  trusts  has,  so  far,  led  to  nothing 
but  a  variety  of  anti-trust  bills,  no  more  valuable  than  the 
scores  of  similar  measures  introduced  in  both  houses  before 
the  chase  began. 

THE   TARIFF   POLICY. 

The  tariff  policy  of  the  Democratic  Party  is  drafted  by  the 
Ways  and  Means  Committee  of  the  House,  under  the  direction 
of  Representative  Underwood,  in  the  various  measures  that 
were  put  through  the  House,  practically  without  debate,  and 
taken  up  in  the  Senate  by  the  Democratic-Insurgent  coalition, 
is  more  or  less  confused.  It  indicates  differences  of  opinion 
among  the  Democrats  themselves  so  marked  as  to  raise  the 
question  as  to  what  may  be  expected  should  that  party  find 
itself  in  a  position  to  carry  out  its  purposes  unhampered. 

The  House  began  its  tariff  tinkering  shortly  after  the  begin- 
ning of  Congress  by  the  adoption  of  a  so-called  farmers'  free 


THE  SIXTY-SECOND  CONGRESS.  403 

list  bill.  The  measure  would  have  been  as  disastrous,  however, 
to  the  farmer  as  it  would  have  been  to  the  manufacturer  had 
it  become  a  law.  It  passed  the  Senate  by  a  combination  of 
Democratic  and  a  few  Republican  votes,  and  was  vetoed  by 
President  Taft.  (For  this  and  other  tariff  vetoes  see  docu- 
ment, "Pages  From  the  Congressional  Record,"  issued  by  the 
Republican  National  Committee.) 

The  next  great  political  move  on  the  part  of  the  Democrats 
was  the  passage  of  a  bill  reducing  the  duties  on  wool  and 
manufactures  of  wool — the  much-discussed  Schedule  K.  The 
measure  was  reported  adversely  after  extensive  hearings  by 
the  Finance  Committee  of  the  Senate.  Democratic  Senators 
then  formed  a  coalition  with  certain  Republicans  and  suc- 
ceeded in  passing  a  substitute  bill  as  a  compromise  measure, 
which  was  sent  to  the  President  and  promptly  vetoed.  During 
the  second  session,  despite  the  fact  that  the  Tariff  Board  had 
meanwhile  made  a  most  exhaustive  report  on  the  woolen  indus- 
try, the  same  legislative  performance  was  repeated  with  the 
idea  that  the  President  would  be  put  doubly  "in  a  hole." 

The  wool  bill  was  vetoed  a  second  time  by  the  President 
and  passed  over  the  veto  by  the  House,  but  failed  to  secure 
the  necessary  two-thirds  in  the  Senate. 

In  the  first  session,  the  House  also  passed  a  cotton  bill. 
When  this  measure  reached  the  Senate,  however,  Southern 
Democrats  representing  cotton  mill  States,  kicked  their  insur- 
gent allies  overboard  and  took  the  situation  into  their  own 
hands — the  regular  Republicans  looking  on  as  spectators  at 
the  tariff  farce — loading  the  measure  down  with  a  metal 
schedule,  drawn  by  a  single  Senator,  and  unconsidered  by  a 
committee  in  either  House,  and  a  chemical  schedule  drawn  by 
a  government  clerk,  with  the  purpose  of  making  the  bill  as 
ridiculous  as  possible.  This  farcical  measure  might  have 
become  a  tragic  one  had  it  not  been  promptly  vetoed  by  the 
President. 

The  second  session  was  begun  with  the  passage  of  a  steel 
revision  bill  by  the  House  in  response  to  the  charges  of  W.  J. 
Bryan  that  the  chairman  of  the  Ways  and  Means  Committee, 
Representative  Underwood,  was  oversolicitous  about  the  steel 
industries  in  his  own  State.  This  was  passed  by  the  Senate, 
by  means  of  the  coalition  already  referred  to,  but  with  an 
amendment  repealing  the  Canadian  reciprocity  act.  By  agree- 
ment the  same  coalition,  however,  receded  from  the  amend- 
ment later  and  sent  the  bill  to  the  White  House. 

The  bill  was  promptly  vetoed  by  the  President,  who  pointed 
out  the  disastrous  effect  of  the  haphazard  revision  of  the 
schedule  affecting  large  industries  all  over  the  United  States. 
The  House  passed  the  bill  over  the  veto,  which  was  sustained, 
however,  in  the  Senate,  by  a  strict  party  vote. 

The  great  tariff  coup  of  the  Democrats,  however,  the  climax 
of  the  tariff-tinkering  opera  bouffe,  was  the  free-sugar  bill.  It 
placed  sugar  on  the  free  list,  cut  down  the  revenues  $60,000,- 
000  annually  and  laid  the  sugar  industry  of  the  United  States 
completely  open  to  competition  with  the  cheap  labor  of  the 
tropics  and  of  European  countries  with  the  promise  of  scant 
benefit  to  the  consumer  and  great  advantage  to  the  sugar 
refiners.  To  make  up  for  the  loss  of  revenue  the  excise  tax 
bill  was  framed,  patterned  after  the  Republican  corporation 
tax  bill,  but  with  the  marked  difference  that  the  excise  tax 
is  to  be  levied  upon  the  earning  capacity  of  individuals,  while 
the  corporation  tax  is  levied  upon  the  income  from  accumu- 
lated capital  represented  by  the  stock  of  corporations.  Even 
the  Democrats  of  the  Senate  rejected  the  free  sugar  bill  and 
drafted  a  measure  of  their  own.  For  it  a  Republican  measure, 
reported  by  the  Finance  Committee,  was  substituted  by  the 
solid  Republican  majority  with  the  aid  of  the  Democratic 
Senators  from  Louisiana,  and  passed.  This  Republican  meas- 
ure, reducing  the  tariff,  was  the  great  problem  for  the  Demo- 
crats, who  promptly  reversed  the  policy  they  had  adopted  in 
forming  a  coalition  with  certain  Republicans  to  accept  any 
measure  they  could  get  so  long  as  it  meant  a  reduction  of 
tariff,  and  have  refused  up  to  eve  of  the  adjournment  of  the 
present  session  to  send  it  to  the  President. 


404  THE  SIXTY-SECOND  CONGRESS. 

The  course  pursued  with  respect  to  the  pop-gun  cotton  hill 
and  the  chemical  bill  during  the  second  session  was  much  the 
same.  Obviously  framed  not  with  the  idea  of  affording  relief 
to  any  one,  but  of  serving  as  pawns  in  a  political  game,  they 
are  of  no  interest  except  in  so  far  as  they  carried  out  the 
Democratic  purpose  of  "putting  the  President  in  check." 

As  a  matter  of  fact,  the  ardor  of  the  Democrats  in  revising 
the  tariff  cooled  perceptibly  when  they  were  confronted  with 
the  possibility  of  passing  their  measures  over  the  Executive 
veto  in  the  Senate.  Fearing  that  there  would  be  a  reaction 
against  their  tariff  tinkering  if  any  of  the  measures  they  pro- 
posed became  laws,  they  displayed  only  a  perfunctory  interest 
in  attempting  to  override  the  vetoes  in  the  Senate,  the 
majority  being  ample  in  the  House. 

In  contrast  with  this  nondescript  tariff  policy  exemplified 
in  these  measures,  President  Taft's  steadfast  adherence  to  the 
principle  that  it  is  more  important  to  revise  the  methods  of 
making  the  tariff  than  it  is  to  improperly  revise  the  tariff,  and 
his  insistence  upon  the  establishment  of  a  permanent  tariff 
commmission,  stand  out  in  bold  relief. 

THE  "ECONOMY"  PROGRAMME. 

The  House  economy  programme  was  begun  at  the  outset 
of  the  Congress  with  the  dismissal  of  a  few  old  employes,  and 
was  continued  until  it  reached  a  point  at  which  the  Navy  was 
sacrificed  and  the  forces  of  the  regular  Army  reduced  in  order 
that  a  showing  might  be  made.  The  same  spirit  of  economy 
was  singularly  absent,  however,  in  the  case  of  the  Sherwood 
pension  bill,  which  provided  for  an  annual  increase  of  $75,- 
000,000;  in  the  numerous  investigations  undertaken  for  the 
purpose  of  discrediting  the  Republican  Administration,  and  in 
the  case  of  consideration  of  the  naval  building  programme  by 
the  House  Democratic  caucus,  at  which  a  large  number  of 
Democrats  insisted  that  if  there  were  to  be  an  appropriation 
for  battleships  there  must  also  be  a  "pork  bar'l"  bill  for  public 
buildings.  At  the  same  time  President  Taft's  messages  trans- 
mitting reports  of  the  Economy  Commission,  suggesting  meth- 
ods of  saving  millions  of  dollars  annually,  were  ignored,  the 
commission  itself  narrowly  escaping  the  Democratic  pruning 
knife. 

Without  regard  to  the  needs  of  the  various  executive  depart- 
ments for  funds  to  carry  on  the  Government  efficiency,  the 
House  appropriation  committees  slashed  the  estimates  sub- 
mitted for  appropriations  indiscriminately.  In  many  cases  the 
necessary  items  were  restored  in  the  Senate,  with  the  result 
that  a  compromise  was  reached  in  the  adjustment  of  the  differ- 
ences between  the  two  Houses. 

Holding  persistently  to  its  purpose  to  force  through  general 
legislation  incorporated  in  the  appropriation  bills,  in  justifica- 
tion of  which  the  House  parliamentarians  dug  out  of  the 
archives  the  obsolete  Holman  rule,  the  Democratic  Party 
succeeded  in  holding  up  the  supply  measures  until  weeks  after 
the  close  of  the  fiscal  year.  It  was  necessary  to  extend  the 
appropriations  of  the  last  fiscal  year  three  times  by  means  of 
joint  resolutions  in  order  to  prevent  the  machinery  of  govern- 
ment from  coming  to  a  standstill. 

The  methods  resorted  to  by  the  Democratic  majority  in  the 
House  are  best  exemplified  by  the  course  it  followed  in  the 
case  of  the  legislative,  judicial  and  executive  appropriation 
bill.  As  sent  to  the  President  this  contained  provisions  abol- 
ishing the  Commerce  Court  and  placing  civil  service  employes 
under  a  seven-year  tenure.  The  President  vetoed  the  measure 
on  the  ground  that  the  first  was  unjustified  and  that  the 
second  was  a  return  to  the  spoils  system.  •  Carrying  out  their 
threats  to  revenge  themselves  for  this  executive  disapproval, 
the  House  leaders  immediately  repassed  the  bill,  after  elimi- 
nating the  seven-year  tenure  provision,  but  inserted  a  pro- 
vision abolishing  a  number  of  important  offices  in  the  State 
Department  and  crippling  it  to  such  an  extent  as  to  impair  its 
efficiency,  with  disastrous  effect  upon  the  foreign  relations  of 
the   United   States.      In  the  same  spirit  of  retaliation   a  pro- 


THE  SIXTY-SECOND  CONGRESS.  405 

vision  was  inserted  in  the  Army  Appropriation  bill  ousting 
Major  General  Leonard  Wood  from  the  office  of  chief  of  staff 
of  the  Army.  This  measure  was  also  sent  back  with  a  veto 
message  by  the  President. 

The  Democrats  refused  obstinately  to  separate  the  general 
legislation  from  the  appropriation  bills  and  submit  it  in 
separate  measures.  The  most  typical  instance  of  the  disastrous 
results  of  this  policy  was  presented  by  the  pension  appropria- 
tion bill.  The  House  insisted  upon  abolishing  the  pension 
agencies  scattered  throughout  the  country  for  the  convenience 
of  pensioners.  The  Senate  refused.  The  Senate  conferees  on 
the  measure  offered  various  compromises  and  suggested  that 
a  separate  bill  abolishing  the  agencies  would  be  taken  up  for 
immediate  consideration.  Rather  than  yield  their  position, 
however,  the  House  Democrats  held  out  until  the  pension 
appropriation  was  exhausted  and  the  old  soldiers,  many  of 
whom  were  absolutely  dependent  upon  the  money  they  received 
from  the  Government,  were  obliged  to  wait  for  it  while  the 
House  Democrats  played  their  political  game  to  the  end. 

The  House  remained  obdurate,  but  the  Senate,  rather  than 
work  further  hardship  to  the  old  soldiers,  consented  to  the 
abolition  of  the  agencies  on  January  31,  1913. 

The  end  of  the  political  game,  which  has  occupied  the  atten- 
tion of  the  Democrats  from  the  very  beginning  of  the  present 
Congress,  was  due,  for  the  most  part,  only  to  the  fact  that  the 
physical  exhaustion  of  many  of  the  legislators  precluded  their 
attending  the  session  any  longer,  and  that  it  became  a  constant 
efforts  for  the  leaders  to  marshal  their  forces  and  maintain  a 
quorum.  Near  the  close  of  the  second  session  the  Democrats 
were  without  any  more  definite  purpose  than  they  had  at  the 
beginning,  and  seemed  inclined  to  go  on  until  the  session 
merged  into  the  following  one,  or  until  the  elections  were 
over,  in  the  hope  of  embarrassing  the  Administration  in  some 
way  or  of  hitting  upon  other  promises  to  hold  out  to  the 
electorate. 

What  the  Congress  has  accomplished  has  been  little.  Its 
greatest  achievement  has  been  to  bring  into  contrast  the  "ex- 
pediency," the  indefiniteness,  the  lack  of  purpose  on  the  part 
of  the  Democrats  and  the  directness,  the  consistency,  and 
singleness  of  purpose  of  President  Taft  as  presented  in  his 
unheeded  messages  and  in  his  vetoes  of  unwise  legislation. 


I  am  a  protectionist  because  our  country  has  prospered  with 
protection  and  languished  without  it. — Hon.  B.  F.  Jones,  in  the 
"American  Economist." 

While  this  is  a  big  country,  it  is  not  now,  and  may  it  never  be, 
big  enough  knowingly  to  admit  into  the  ranks  of  its  citizenship 
any  avowed  disorganiaier  of  government  or  any  avowed  scoffer  at 
our  republican  institutions.  But  our  hands  are  outstretched  to 
those  who  come  to  us  with  worthy  purpose. — Postmaster-General 
Cortelyou. 

I  believe  our  strong  party  with  its  great  principles  is  only  in 
its  infancy.  Our  glory  as  a  nation  has  but  just  begun.  There 
are  mighty  problems  yet  to  be  solved,  grave  questions  to  be 
answered,  complex  issues  to  be  wrought  out,  but  I  believe  we  can 
trust  the  Grand  Old  Party  and  its  leaders  to  care  for  the  future 
of  our  Nation  and  of  our  people  as  it  has  cared  for  them  so  well 
in  the  past.— Hon.  James   S.   Sherman. 

The  "Wilson  bill  was  enacted  into  law.  The  proof  of  the 
pudding  is  in  the  eating.  There  wereTthree  million  men 
working  in  the  productive  industries  and  on  their  pro- 
ducts that  were  thrown  out  of  employment.  They,  learn- 
ing through  their  stomachs  as  to  the  effects  of  it,  helped 
pull  down  the  rocks  and  the  mountains  upon  your  heads. 
The  rocks  and  mountains  will  fall  upon  yon  again,  I  hope, 
in    1912,   and    I   know   in    1914   and   1916.— Ex-Speaker    Cannon. 

The  recall,  I  venture  to  predict,  if  adopted  will  prove  a 
disappointment  throughout.  It  will  not  serve  to  raise  the 
standard  of  public  life;  it  will  not  serve  to  improve  the 
character  of  officials,  but,  on  the  contrary,  it  will  make 
trimmers  of  men  who  accept  office,  if  they  are  not  that 
when  they  accept  office,  and  it  will  deter  men  of  independ- 
ence and  capacity,  who  are  not  seeking  place,  from  accept- 
ing positions  of  trust.— Hon.  Charles  Nagel,  Secretary  of 
Commerce  and   Labor. 


SPEECH 

OF 

JAMES  SCHOOLCRAFT  SHERMAN 

ACCEPTING  THE  NOMINATION  FOR  THE  VICE 

PRESIDENCY  BY  THE   REPUBLICAN 

NATIONAL  CONVENTION. 


Delivered  at  Utica,  New  York,  August  21,  1912. 


Gentlemen  of  the  Committee  :  This  company  appreciates  the 
honor  of  this  visit  by  your  distinguished  membership.  You  repre- 
sent the  forty-eight  States  of  the  Union  and  the  eight  million 
Republican  voters  in  our  wide  domain.  You  bear  the  commission 
of  the  Convention  which,  representing  them,  met  in  Chicago  in 
June.  That  convention  declared  anew  our  fidelity  to  the  historic 
Republican  Party,  our  purpose  to  carry  forward  the  work  it  has 
so  well  done,  and  to  promote  further  the  prosperity  and  progress 
of  the  United  States.  The  annals  of  American  parties  do  not 
record  the  proceedings  of  a  political  gathering  conducted  with 
more  openness,  fairness,  deliberation,  sobriety  and  worthy  purpose 
than  that  for  which  you  speak.  This  assemblage  will  gladly  con- 
cede the  fact  that  other  procedure  were  impossible  in  a  body 
presided  over  by  Oneida's  native  son,  Elihu  Root. 

Not  deceived  by  the  clamor  of  those  who  attempted  to  bolster 
up  claims  without  basis,  by  hundreds  of  contests  resting  on 
foundations  so  flimsy  that,  in  the  light  of  investigation,  most  of 
them  melted  away  like  snow  in  a  furnace  heat  and  were  rejected 
by  quite  or  nearly  an  unanimous  vote,  the  convention  adopted  a 
platform  that  rings  true  for  patriotism  and  Constitutional  gov- 
ernment and  worthily  bestowed  a  renomination  upon  our  present 
Chief  Executive. 

You,  gentlemen,  notify  me  that  the  convention  named  me  as 
the  party's  candidate  for  Vice-President.  Our  party  has  never 
before  conferred  a  second  nomination  for  that  office  upon  any 
man.  This  distinction  was  not  sought  by  me,  but,  unsolicited, 
it  is  the  more  appreciated  and  its  value  is  augmented  by  the 
generous  words  in  which  you,  Senator  Sutherland,  a~s  pleased  to 
announce  it.  I  can  not  but  recognize  your  message,  gentlemen, 
as  a  mandate  which  I  must  obey.  As  a  loyal  Republican,  a 
disciple  of  the  party  of  Lincoln  and  Grant,  of  Harrison  and 
McKinley,  and  of  him  for  whom  the  ground  upon  which  we  stand, 
dedicated  to  public  use,  is  named,  Roscoe  Conkling,  I  stand 
squarely  upon  the  party  platform.  I  approve  of  the  admirable 
statement  of  Republican  principles  and  achievements  made  in  the 
address  accepting  the  nomination  for  President  by  William 
Howard  Taft.  Upon  that  platform,  and  associated  with  President 
Taft,  I  gratefully  accept  the  renomination  as  the  Republican 
candidate  for  the  office  of  Vice-President  of  the  United  States. 

Fortunate  are  we,  Republicans,  in  the  fact  that  our  opponents 
are  divided  into  two  camps,  rivaling  each  other  in.  their  efforts 
to  excel  in  disturbing  the  civic  and  economic  order  of  the  country. 
The  new  party  thrusts  itself  forward  into  the  vacuum  left  by 
the  phantoms  of  other  third  parties  which  have  passed  into 
oblivion.  Oblivion,  too,  awaits  it..  The  Democratic  Party  in  the 
Nation  has  many  times  defeated  its  Republican  rival  in  August; 
but  twice  only  has  it  done  so  in  November.    The  political  skies 


SPEECH    OP    JAMES    SCHOOLCRAFT    SHERMAN.  407 

are  often  confused  and  lowering  in  midsummer,  but  the  cooling1 
breezes  of  November  render  them  clear  and  normal.  Astronomers 
tell  us  that  many  shooting1  stars  flash  into  vision  in  August,  but 
dazzling  though  they  be  in  their  flight,  they  disappear  in  unknown 
space  while  the  planets  roll  on  in  splendor  in  their  regular  orbits. 
So  in  the  political  firmament — comets  may  eross  the  canopy ;  they 
have  no  fixed  place  in  the  solar  system.  The  Democratic  rallying 
cry  has  always  been  "a  tariff  for  revenue  only,"  and  the  bitterest 
assaults  on  the  policy  ot  protection  to  American  industry.  This 
year  sees  no  innovation.  The  Democratic  candidate,  Professor 
Wilson,  is  Bryan  and  Parker  over  again  without  the  oratory  of 
the  one  or  the  legal  training  of  the  other,  but  with  the  free-trade 
prejudices  of  both  seemingly  intensified.  It  is  not  unkind  to  dis- 
cern that  Professor  Wilson  is  a  pedagogue,  not  a  statesman,  and, 
in  his  mode  of  thought,  academic  rather  than  practical.  Job  ap- 
pealed :  "O,  that  mine  adversary  had  written  a  book !"  Pro- 
fessor Wilson  has  written  several,  and  many  utterances  in  them 
will  prove  both  an  embarrassment  and  a  burden  in  this  cam- 
paign. In  his  History  of  the  American  People  he  says  (Vol.  5, 
page  212)  : 

"Now  came  multitudes  of  men  of  the  lowest  class  from  the 
south  of  Italy  and  men  of  the  meaner  sort  out  of  Hungary  and 
Poland,  men  out  of  the  ranks  where  there  was  neither  skill  nor 
energy  nor  any  initiative  of  quick  intelligence,  and  they  came  in 
numbers  which  increased  from  year  to  year,  as  if  the  countries 
of  the  south  of  Europe  were  disburdening  themselves  of  the  more 
sordid  and  hapless  elements  of  their  population." 

And  almost  immediately  thereafter  the  learned  professor  fur- 
ther says : 

"The  Chinese  were  more  to  be  desired  as  workmen  if  not  as 
citizens  than  most  of  the  coarse  crew  that  came  crowding  in 
every  year  at  the  Eastern  ports." 

Was  the  statement  when  made  well  founded?  Is  it  to-day? 
Was  it  just?  Was  it  worth  while  for  the  learned  writer  to  give 
expression  to  such  sentiments?  Do  my  hearers  to-day  believe  .the 
Chinese  to  be  more  desired  than  the  European  immigrants?  Do 
they  concede  the  immigrants  from  the  land  of  Kosciusco  and 
Columbus  to  be  of  the  "lowest  class,"  of  the  "meaner  sort,"  the 
"most  sordid"  and  the  "coarsest  crew"?  By  their  votes  in 
November  they  must  say  if  they  believe  a  man  who  gave  utter- 
ance but  a  few  years  ago  to  such  thoughts  and  sentiments  is  now 
best  fitted  to  be  the  chief  executive  of  their  adopted  government 
and  country. 

For  the  first  time  in  the  memory  of  my  oldest  hearer  the 
country  witnessed  a  convention  held  in  Chicago  two  weeks  since 
in  which  there  was  no  roll  call  of  delegates,  no  ballots  cast, 
where  red  bandannas  were  preferred  to  the  stars  and  stripes, 
where  the  scent  was  scarlet  overmuch,  like  the  flag  of  anarchy, 
not  red,  white  and  blue,  the  symbol  of  patriotism.  The  unques- 
tioned master  of  the  situation  was  greeted  by  his  satellites  as 
an  "inspired  leader,"  and  the  irreverence  which  fell  from  many 
lips  reached  its  climax  in  the  closing  utterances  of  the  chairman. 
The  "leader's"  right  to  rule  was  recognized  and  proclaimed. 
Never  in  the  history  of  the  English  tongue  was  greater  assump- 
tion of  power  proclaimed.  Thoughtful  and  patriotic  citizens  will 
inquire  into  the  meaning  of  the  pronunciamento  of  that  gath- 
ering that  there  will  follow  "a  dangerous  revolution"  unless  its 
policies  are  adopted.  American  voters  of  all  parties  will,  I 
believe,  resent  any  appeal  to  the  terror  of  violence.  Both  of  the 
opposing  parties  assault  with  equal  vehemence  the  present  tariff 
under  which  our  country  has  so  markedly  prospered.  They  abuse 
the  Payne-Aldrich  law  without  stint  and  without  reason.  That 
tariff  Act  has  closed  no  factory,  has  put  out  the  fires  in  no 
furnace,  has  thrown  no  mechanic  or  laborer  out  of  employment. 
It  has  opened  no  free  soup  houses  for  starving  families  deprived 
of  the  wage  of  the  bread-earner;  it  has  formed  no  bread  line  of 
jaded,  disheartened  seekers  for  employment.  It  has  kept  wide 
open  the  home  markets  for  the  produce  of  the  farm  and  the 
factory ;  industrious,  workingmen  having  the  highest  wage  ever 


408  SPEECH    OP   JAMES    SCHOOLCRAFT   SHERMAN. 

known  have  been  able  to  build  new  houses ;  to  clothe  well  their 
children ;  to  provide  for  their  schooling  and  to  give  them  a 
generous  measure  of  the  comforts  and  luxuries  of  life.  The 
landlord  is  not  embarrassed  in  the  collection  of  his  rent,  the 
grocer  is  receiving  pay  for  his  supplies.  The  church  of  his 
choice  is  receiving  his  free  gifts  from  the  prosperous  citizen. 
Nearly  ten  millions  of  depositors  in  the  savings  banks  had,  last 
year,  laid  away  over  four  thousand  millions  of  dollars  ($4,212,- 
583,000),  while  every  branch  of  moral,  social  and  educational 
betterment  has  received  vital  impulse  and  generous  support. 
Wherein  can  the  thoughtful  citizen  see  promise  of  a  betterment 
in  the  frantic  cry  for  "a  change"? 

I  have  seen  in  no  speech  or  literature  made  or  issued  by  a 
member  of  either  of  the  opposing  parties  the  fact  stated  that  of 
the  hundreds  of  millions  of  foreign  goods  imported  last  year, 
fifty-one  per  cent,  came  in  dutv  free.  Have  any  of  the  rancorous 
critics  of  the  Payne  tariff  law  cited  the  fact  that  under  its 
provisions  the  duties  on  all  importations  were  reduce^  twenty- 
one  per  cent.?  And  yet  this  "revision  downward"  was  accom- 
plished without  harm  to  American  labor.  Unbridled  ambition 
and  long  deferred  hope  have  little  regard  for  reason  and  for 
truth.  Our  export  trade  has  mounted  marvelously.  In  tne  last 
fiscal  year,  in  manufactures  alone,  it  passed  the  billion  dollar 
mark  ($1,021,000,000).  The  annual  product  of  our  manufactures 
surpasses  that  of  any  other  nation,  and  besides  fully  supplying 
our  own  people,  exceeds  all  competitors  in  the  value  of  exports. 

The  Democratic  majority  in  our  House  of  Representatives  is 
writing  in  lurid  characters  the  extent  to  which  our  opponents  are 
willing  to  go  in  their  zealous  efforts  to  ruin  protection.  The 
several  bills  reducing  various  schedules,  passed  by  the  House, 
and  under  the  strange  condition  existing  in  the  Senate,  acqui- 
esced in  by  that  body,  exhibit  the  crudities  and  destructive  aims 
of  the  advocates  of  a  tariff  for  revenue  only.  The  need  of  a 
Republican  President  is  clearly  proven  by  the  defense  of  American 
industry  by  President  Taft  in  his  vetoes  of  these  recent  tariff 
bills,  from  which  he  has  saved  every  interest  of  labor  and  produc- 
tion. Had  he  no  other  title  to  both  gratitude  and  support  (and 
he  has  a  multitude),  these  vetoes  alone  call  for  the  support  at 
the  polls  of  every  American  citizen  who  toils  with  hand  or  brain, 
on  the  farm  or  in  the  factory,  in  the  mill  or  in  the  shop  or  in 
the  office,  who  values  present  blessings  and  desires  to  preserve 
them. 

The  Republican  Party  has  never  claimed  to  possess  within  its 
membership  all  the  world's  virtue  and  patriotism.  We  do  not 
pretend  to  be  better  than  other  men  of  good  intent  who  try  to 
behave  well.  We  concede  to  the  followers  of  other  party  standards, 
be  they  Democratic,  Progressive,  Prohibition  or  what  not,  a  desire 
to  do  that  which  shall  serve  the  public  weal.  We  insist  that 
in  their  advocacy  of  many  economic,  financial  and  governmental 
theories  they  are  in  error,  grievous  error.  While  admitting  the 
sincerity  of  their  beliefs,  we  maintain  that  the  principles  in 
which  we  believe  and  the  policies  which  we  advocate  are  far  the 
best  to  be  upheld  and  applied  for  the  best  interests  of  the  hun- 
dred million  of  American  people.  We  insist  that  experience  justi- 
fies our  contention.  With  but  two  intervals,  Republican  rule  has, 
for  half  a  century,  guided  the  majestic  forward  and  upward 
strides  of  this  Nation.  That,  we  assert,  is  a  demonstration  of  the 
capacity  and  the  purpose  and  the  success  of  the  Republican  party 
in  securing  for  this  country  sane,  certain  and  all-embracing 
progress. 

The  crime  of  this  "new  age"  is  frenzied  speech  and  action; 
lack  of  thought,  a  spurning  of  deliberation  and  of  the  weighing 
of  consequences.  Fakers  with  projects  to  "get  rich  quick"  draw 
gaping  crowds.  Mad  haste  is  the  pastime  of  the  multitude. 
Automobiles  race  to  carry  their  passengers  to  death  at  a  mile 
a  minute.  The  British  Board  of  Trade  attributes  the  awful 
sinking  of  the  Titanic,  with  its  cruel  sacrifice  of  life,  of  crew 
and  passengers,  to  excessive  speed.  The  third  term  party  and 
Candidate  Wilson  urge  the  country  to  like  disaster  and  ruin. 

When  the  American  people,  in  the  quiet  of  the  home  fireside, 


SPEECH    OF   JAMES    SCHOOLCRAFT    SHERMAN.  409 

about  the  evening  lamp,  in  the  late  Autumn  days,  shall  have  given 
careful  thought  to  the  history  of  the  past ;  shall  have  considered 
tne  blessings  that  have  come  from  tried  policies ;  when  they  shall 
have  contemplated  the  possible  dangers  that  may  follow  from 
unwise  and  unripe  changes,  they  will  give  heed  to  the  warning 
and  will  not  repeat  in  our  political  and  economic  fields  the 
frightful  and  ghastly  experience  of  the  Titanic.  We  Republicans 
are  not  men  worshippers.  We  contend  with  Jefferson  for  "princi- 
ples, not  men."-  We  are  free,  and  we  follow  blindly  no  leader  and 
bow  to  no  dictator.  The  people  always  have  and  the  people  always 
will  rule.  We  grip  our  anchor  firmly  on  the  Constitution  and  the 
American  system  of  representative  government.  The  more  savage 
and  truculent  the  attacks  upon  them,  the  more  insolent  the 
bluster,  the  more  steadfast  is  our  stand  for  free  institutions, 
which  are  the  glory  of  mankind.  An  untrammelled  judiciary  is 
their  strong  bulwark.  We  warn  the  electorate  not  to  be  drowned 
by  a  Niagara  of  denunciation  and  abuse.  Every  tirade  against 
the  Constitution  and  the  law  and  the  courts  is  a  strident  call  to 
the  American  people  to  protect  their  homes  and  to  maintain, 
inviolate,  Constitutional  government;  every  assault  upon  pro- 
tection a  summons  to  preserve  their  opportunities,  to  maintain 
existing  conditions,  which  places  the  American  wage  earner  in 
every  calling  on  a  higher  scale  of  living  and  civilization  than 
enjoyed  elsewhere  in  the  world.  Such  protection  can  be  guaran- 
teed only  by  adequate  customs  duties,  justly  and  wisely  applied, 
to  hold  our  broad  and  immense  home  market  against  the  world. 
Such  protection,  to  be  safe  and  certain,  must  be  based  upon  a 
Republican  protective  tariff. 

The  evidence  upon  which  the  American  electorate  will  base  its 
verdict  in  November  will  be  submitted  upon  the  hustings,  through 
the  press  and  by  pleas  through  the  mails.  The  evidence  should 
be  based  upon  the  experience  of  the  past.  The  jury  of  American 
people  must  weigh  it  well  and  sift  the  false  from  the  true.  The 
verdict  will  be  rendered  within  a  few  hours  of  a  single  day ;  its 
effect  will  be  with  us  for  years.  Let  no  juror  reach  his  conclu- 
sion, render  his  verdict,  without  due  care  for  the  welfare  of 
himself ,s  his  kinsmen  and  his  fellows. 

We  ask  that  the  Republican  Party  and  its  candidates  be  tried 
upon  the  record  of  service  and  accomplishments.  We  are  near  the 
end  of  President  Taft's  first  term  of  service,  with  our  Government 
at  amity  with  all  foreign  powers,  amid  domestic  tranquillity  and 
with  our  people  blessed  by  prosperity  and  abundance;  our  navy 
among  the  foremost  of  the  world;  our  army  in  a  high  degree 
of  excellence ;  our  postal  service,  for  the  first  time  in  its  history, 
self-sustaining;  the  colossal  dream  of  the  centuries,  an  Isthmian 
Canal,  almost  a  completed  reality;  our  foreign  and  domestic 
commerce  in  a  condition  of  activity,  vigor  and  health,  meeting 
the  desires  of  the  most  optimistic,  and  every  department  of  the 
Government  rendering  proper  and  efficient  aid  to  law-abiding 
citizens  in  every  calling.  Confident  that  the  American  people  are 
not  yet  willing  to  destroy  and  discard  the  Constitution  which  has 
stood  the  test  of  more  than  a  century,  which  was  framed, 
expounded  and  upheld  by  the  great  men  of  the  past;  that  they 
have  not  yet  forgotten  the  direful  results  of  the  mistake  of  1892, 
we  calmly  await  the  ides  of  November. 


It  is  a  mistake  to  assume  that  the  Supreme  Court  in  its  decision 
in  the  Oregon  case  upholds  the  Initiative  and  referendum  method 
of  legislation,  or  even  the  right  of  a  State  under  the  Federal  Con- 
stitution to  adopt  it.  The  Pacific  States  Telephone  and  Telegraph 
Company,  in  refusing  to  pay  a  tax  imposed  by  a  law  enacted  through 
the  Initiative  and  referendum  process,  took  the  ground  that  the  act 
was  unconstitutional  because  the  adoption  of  that  process  in  the 
Constitution  of  the  State  deprived  it  of  a  republican  form  of 
government,  which  the  United  States  is  bound  by  the  Federal  Con- 
stitution to  "guarantee  to  every  State  in  this  Union."  The  Supreme 
Court  declined  to  pass  upon  the  question  of  the  constitutionality 
of  this  tax  law  because  it  would  involve  the  question  whether  the 
State  of  Oregon  has  had  a  republican  form  of  government  since 
the  adoption  in  its  Constitution  of  the  initiative  and  referendum 
method  of  legislation,  and  that  is  not  a  judicial  but  a  poliical 
quesion,  which  it  is  for  Congress  to  determine.  That  is  all  that 
the  court   has  really  decided. — New  York  "Journal    of  Commerce." 


REPUBLICAN  NATIONAL  COMMITTEE. 


Chairman,  Charles  D.  Hilles. 
Secretary,  James  B.  Reynolds. 
Treasurer,  George  R.  Sheldon. 
Sergeant-at-Arms,  William  F.  Stone. 

EXECUTIVE   COMMITTEE. 

John  T.  Adams,  Iowa. 
Fred  W.  Estabrook,  New  Hampshire. 
Thomas  P.  Goodrich,  Indiana. 
Thomas  A.  Marlow,  Montana. 
Alvah.  H.  Martin,  Virginia. 
Thomas  K.  Neidringhaus,  Missouri. 
Samuel  A.  Perkins,  Washington. 
Newell  Sanders,  Tennessee. 
Charles  B.  Warren,  Michigan. 
Roy  O.  West,  Illinois. 
Ralph  E.  Williams,  Oregon. 

ADVISORY    COMMITTEE. 

William  Barnes,  Jr.,  Chairman,  New  York. 

Theodore  E.  Burton,  Ohio. 

Austin  Colgate,  New  Jersey. 

Thomas  H.  Devine,  Colorado. 

Phillips  Lee  Goldsborough,  Maryland. 

John  Hays  Hammond,  Massachusetts. 

Joseph  B.  Kealing,  Indiana. 

Adolph  Lewisohn,  New  York. 

Henry  F.  Lippitt,  Rhode  Island. 

David  W.  Mulvane,  Kansas. 

Harry  S.  New,  Indiana. 

Herbert  Parsons,  New  York. 

Samuel  L.  Powers,  Massachusetts. 

Elihu  Root,  New  York. 

George  R.  Sheldon,  New  York. 

Otto  F.  Stifel,  Missouri. 

Fred  W.  Upham,  Illinois. 

John  Wanamaker,  Pennsylvania. 


MEMBERS   BY   STATES. 


Alabama — Prelate  D.  Barker,  Mobile. 
Alaska,  William  S.  Bayliss,  Juneau. 
Arizona — Ralph  H.  Cameron,  Grand  Canyon. 
Arkansas — Powell  Clayton,  Eureka  Springs. 
California — Russ  Avery,  Los  Angeles. 
Colorado — .Simon  Guggenheim,  Denver. 
Connecticut — Charles  F.  Brooker,  Ansonia. 

410 


REPUBLICAN    NATIONAL    COMMITTEE.  411 

Delaware — T.  Coleman  DuPont,  Wilmington. 

District  of  Columbia — Chapin  Brown,  Washington. 

Florida — Henry  S.  Chubb,  Jr.,  Gainesville. 

Georgia — Henry  S.  Jackson,  Atlanta. 

Hawaii — Charles  A.  Rice,  Honolulu. 

Idaho — John  W.  Hart,  Menan. 

Illinois — Roy  O.  West,  Chicago. 

Indiana, — James  T.  Goodrich,  Indianapolis. 

Iowa — John  T.  Adams,  Dubuque. 

Kansas — F.  S.  Stanley,  Wichita. 

Kentucky — John  W.  McCulloch,  Owensboro. 

Louisiana — Victor  Loisel,  New  Orleans. 

Maine — Frederick  Hale,  Portland. 

Maryland — William  P.  Jackson,  Salisbury. 

Massachusetts — W.  Murray  Crane,  Dalton. 

Michigan — Charles  B.  Warren,  Detroit. 

Minnesota — I.  A.  Casewell,  St.  Paul. 

Mississippi — L.  B.  Moseley,  Jackson. 

Missouri — Thomas  K.  Neidringhaus,  St.  Louis. 

Montana — Thomas  A.  Marlow,  Helena. 

Nebraska — R.  B.  Howell,  Omaha. 

Nevada — H.  B.  Maxson,  Reno. 

New  Hampshire — Fred  W.  Estabrook,  Nashua. 

New  Jersey — 

New  Mexico — Solomon  Luna,  Los  Lunas. 

New  York — William  Barnes,  Jr.,  Albany. 

North  Carolina — Richmond  Pearson,  Asheville. 

North  Dakota — Thomas  E.  Marshall,  Oakes. 

Ohio — Sherman  Granger,  Zanesville. 

Oklahoma — 

Oregon — Ralph  E.  Williams,  Dallas. 

Pennsylvania — Henry  G.  Wasson,  Pittsburgh. 

Philippines — H.  B.  McCoy,  Manila. 

Porto  Rico — -S.  Behn,  San  Juan. 

Rhode  Island— William  P.  Sheffield,  Newport. 

South  Carolina — Joseph  W.  Tolbert,  Greenwood. 

South  Dakota — Thomas  Thorson,  Canton. 

Tennessee — Newell  Sanders,  Chattanooga. 

Texas — H.  F.  MacGregor,  Houston. 

Utah— C.   E.   Loose,   Proro. 

Vermont — John  L.  Lewis,  North  Troy. 

Virginia — Alvah  H.  Martin,  Norfolk. 

Washington — S.  A.  Perkins,  Tacoma. 

West  Virginia — -William  S.  ""^ wards.  Wheeling. 

Wisconsin — Alfred  T.  Rogers,  Madison. 

Wyoming— George  E.  Pexton,  Evanston. 


■ 


INDEX 


A 

Achievements    of    President    Taft's    Administration 152 

Acceptance  of  nomination  of  President  Taft,  1912   3 

Addyston  Pipe  &  Steel  Company's  case   148 

Administration  of  President  Taft,  achievements  of    152 

Ad  valorem  rates  of  duty  under  various  tariff  laws    32 

Advance  in  eost  of  living 50 

Afro-American  eitizen    238 

Agricultural  products,  prices  of  on  farms  by  States,   1892-1911    327 

Agricultural    prosperity     87 

Agriculture,    Department    of:    work    under    President   Taft's    Adminis- 
tration   386 

Animals  'on   farms,   value  of   in   United   States,   1890-1912    321 

Balance  of  trade  under  Protection   and  Low   Tariff,   1790-1912    333 

Banks,    individual    deposits    in,    1892-1911    312 

Beet   sugar    in    United    States    188 

Boots  and  shoes,  wholesale  prices  of 326 

Bureau  of  Mines    253 

Business  conditions  in  1912  compared  with  1897 85 

C 

Campaign    contributions    202 

Cheap  freights,  effect  of  on  Protection 43 

Civil   service    231 

Clearing  house  returns,  U.  S 311 

Coal   production  and  consumption,   United  States,   United   Kingdom   and 

Germany 299 

Coal  production  of  principal  countries  of  world 300 

Colored    citizen     238 

Commerce  and  Labor,   Department  of :   work  of  under  Taft's  Adminis- 
tration  ''. 389 

Commerce  court 112 

Commerce  of  United  States  by  great  groups.  .  . 340 

Commerce  of  United  States,   United  Kingdom  and   Germany  compared, 

1880-1911     339 

Commercial  failures,   United  States,   1880-1911 311 

Conditions,  financial  and  commercial  in  United  States,  1892,   1896   and 

1911    344 

Congress,   Sixty-second,   work  of 397 

Congressional    Record,    extracts    from 2 

Congressional    Record,    pages    from 2 

Conditions,   financial  and   industrial   in  United  States,   under  Presidents 

Cleveland,   McKinley,   Roosevelt  and   Taft 351 

Conservation   of   natural    resources 250 

Contributions   to   political   campaigns 202 

Control  of  corporations 99 

Corn,  farm  values  of,  1892-1911 328 

Corporations,    regulation    of 99 

412 


INDEX.  413 

Cost  of  living,  advance  in 50 

Crops,   value  of  in  United  States,   1895-1911 320 

Congress,  Party  divisions  in,  1856  to  1912 347 

Contested  delegates   at  Republican   National   Convention,   1912 167 

Cotton,  prices  of  raw  and  manufactured,   1880-1910 305 

Cotton,  production  and  manufacture 304 

Currency,  attitude  of  Republican  party  on 184 

D 

Debt,  public,  'of  United  States,   analysis  of 342 

Delegates,  contested,  at  Republican  National  Convention,  1912 167 

Democratic  free  sugar  bill.  . .  ; 188 

Duties,  ad  valorem,  under  various  tariff  laws 32 

Democratic  tariff  bills,  Sixty-second  Congress,  and  industries  affected.  .  36 

Democratic    platform,     1912 278 

Departments  of  Government:  work  of  under  Taft's  Administration....  352 

Deposits  in  banks  in  United  States,  1892-1911 312 

E 

Econ'omy   and   efficiency   commission 227 

Electoral   college,    1912 346 

Electoral  vote,   presidential   elections,   1856-1908 346 

Employers'  liability  and  workmen's  compensation,  President  Taft  on.  .  .  133 

Exchange  value  of  farm  products,   1911,  compared  with  1896 91 

Expenditures  of  principal   nations  of  world,   1891-1912 308 

Expenditures  per  capita  of  principal  nations  of  world 309 

Exports  from  United  States  by  great  groups 341 

Exports  to  countries  which  protested  against  Dingley  tariff 299 

Extracts  from  Congressional  Record 2 

F 

Factory  in  its  relation  to   farm  values 298 

Failures,   commercial,   in  United  States,   18^80-1911 311 

Farm  animals,  value  of  in  United  States,   1890-1912 321 

Farm  crops  of  United  States,  value  of,  1907-1911 320 

Farm  prices  of  corn,  wheat,  and  oats  in  United  States,  1885-1911....  303 

Farm  products,  exchange  value  of,  1911,  compared  with  1896 91 

Financial  and  industrial   conditions   in   United   States   under   Presidents 

Cleveland,   McKinley,    Roosevelt   and   Taft 351 

Foreign    c'ommerce,    United     States,    during    term    of    each    President, 

1790-1912     335 

Financial,  commercial  and  industrial  conditions  in  United  States,  1892, 

1896    and    1911 344 

Financial  and  commercial  statistics  of  principal  countries 343 

Foreign  countries,  financial  and  commercial  statistics  of 348 

Free  sugar  bill,  Democratic 188 

Freight  rates  in  United  States,  1870-1911 315 

G 

Gold  and  bullion  imported  and  exported  by  United  States,  1850-1912.  .  319 

Gold  and  silver  production  by  countries,  1910 318 

Gold  and  silver  production  in  world,  1493-1911 317 

Gold  supplies,  effect  'of  increase  in  on  prices 50 

H 

High  prices,  causes  of 50 

History  of   United   States   tariffs 38 


414  INDEX. 


I 


Imports   for   consumption   and   per   cent   free   and   ad   valorem   rates   of 

duties,    1877-1911     296 

Import    prices,     1897-1912 297 

Imports  into  United  States  by  great  groups 340 

Imports  under  Payne,   Dingley,   Wilson   and   McKinley  laws,   and  share 

entering  free  and  dutiable,  respectively 295 

Interior   Department:    work   of   under   President    Taft's   Administration  382 

Interstate   Commerce   Commission  :    work   of 109 

Industries   affected   by  Democratic  tariff  bills,   Sixty-third   Congress.  36 
Imports    under   McKinley,    Dingley,    Wilson    and    Payne    laws,    showing 

share  entering  free  of  duty  under  each 32 

J 

Judicial    recall     177 

Justice,  Department  of:  work  of  under  President  Taft's  Administration  368 

L 

Labor  decisions  of  Judge  Taft 143 

Labor,  President  Taft's  attitude   relative  thereto 135 

Labor,    wages    and   prices 117 

Living,  advance  in  cost  of 50 

Low  and  protective  tariffs:  years  it  -vhich  in  operation,  1791-1911.  ..  .  334 

Low  tariff  experiences  of  United  States,  1893-4 151 

M 

Manufactures  exported  from  United  Kingdom  and  United  States 298 

Manufactures  imported  into  United  Kingdom  and  United  States 298 

Manufactures  in  United  States,  progress  of,   1850-1910 323 

Manufacturing  industries,  principal,  showing  employees  and  wages.  .  .  .  324 

Manufacturing  in  its   relation   to   farm  values 298 

Maximum  and  minimum  tariff  systems  of  foreign  countries 46 

Maximum  and  minimum  system  under  present  United  States  tariff  law  33 

Merchant   marine    233 

Monetary    Commission   of   1910 184 

Most   favored   nation    clause,    European   interpretation   of 48 

N 

National  expenditures  of  principal  countries  of  world,  1891-1912 308 

Navy  Department:  work  of  under  President  Taft's  administration....  378 

P 

Pages    from   Congressional    Record 2 

Pension   legislation   of   Republican   party 247 

Per  capita  expenditures,  principal  countries  of  world 309 

Pig  iron  production  of  principal  countries  of  world 300 

Platform  of   Democratic   party,   1912 278 

Platform   of   Republican   party,    1912 271 

Political   divisions   in   Congress,   1856-1912 347 

Post  Office  Department:   work  of  under  Taft  Administration 375 

Presidential   terms,    foreign   commerce    under 335 

Presidential  terms,  Government  receipts  and  expenditures  under 337 

Presidential  vote  by   States,   1864-1908 348 

President  Taft's  Administration,  achievements  of 152 

President  Taft's  attitude  regarding  organized  labor 135 

President  Taft's  speech  of  acceptance,   1912 3 


INDEX.  415 

President  Taft  on  employers'  liability  and  workmen's  compensation...  133 

Prices   abroad   measured   by   import   prices 297 

Prices,  advance  in,  compared  with  advance  in  wages .  117 

Prices   and  cost  of   living 50 

Prices  and  wages  in  England  and  the  United  States 130 

Prices  in  foreign  countries  compared  with  cost  of  living 68 

Prices  of  agricultural  products  on   farms,   1892-1911 327 

Prices  of  imported  articles,  1897-1912 297 

Prices  of  principal  articles  of  farm  consumption 332 

Prices  of  principal  articles  of  farm  production 331 

Prices,  wholesale,  1890-1910,  of  p-rincipal  articles  of  consumption 329 

Principal  manufactures  in  United  States,  showing  employees  and  wages  324 

Prosperity  under  President  Taft's  Administration 81 

Publicity   in   campaign   expenditures 202 

Public  debt  of  United  States,  analysis  of,   1865-1912 342 

/ 
R 

Railroads,    mileage    of    placed    under    receiverships    in    United    States, 

1876-1911     316 

Railway    regulation     109 

Recall,  judicial    ! 177 

Receipts-  and    expenditures    of    United    States    by    presidential    terms, 

1791-1912     337 

Receipts  and  expenditures  of  United   States,   1800-1911 350 

Regulation   of  railways 109 

Regulation  of  corporations 99 

Republican  National  Convention,  contested  seats  in,   1912 167 

Republican  party,  outline  of  Work  of  since  1897 261 

Republican  platform,   1912 271 

Root,  Hon.  Elihu  :  speech  at  Republican  National  Convention,  1912.  .  .  .  262 

Republican   National   Committee,    1912-1916 410 

S 

Savings   banks   in   principal   countries  of  world 314 

Savings  banks  in  United  States,  depositors,   deposits,   etc.,   1860-1911..  313 

Share  of  imports  free  of  duty  under  various  tariff  laws 32 

Sheep-raising  in  United   States,   1878-1911 306 

Sherman,  James  Schoolcraft,  sketch  of  life 395 

Sherman,    James    Schoolcraft :    speech    accepting    nomination    for    Vice- 
President     406 

Sound  currency,  attitude  of  Republican  party  on 184 

Speech  of  PresidenUTaft  accepting  nomination  of  1912 3 

State  Department:   work  of  during  President  Taft's  Administration...  352 

Statistical    statements     295 

Steel  rails  in  United  States,  prices  of,  1867-1911 301 

Subsidies  and  'other  aids  to  shipping  in  foreign  countries 236 

Sugar,   beet  and  cane,  production  of  in  United  States  and  elsewhere .  .  188 

Sugar  production  of  principal  countries  of  world 308 

Sugar :   production,  imports,  exports  and  consumption  of  United  States, 

and   world    production    322 


Taft,   Judge  William  Howard  :    labor   decisions   of 143 

Taft,  President  William  Howard,  on  employers'  liability  and  workmen's 

compensation    133 

Taft,  President  William  Howard,  attitude  of  on  labor 135 

Taft,  President  William  Howard,  on  judicial  recall 177 


416  INDEX. 

Tariff    V 

Taft,  William  Howard :  sketch  of  life U 

Taft,  William  Howard:   speech  of   acceptance,   1912 

Taft,  William  Howard:   record    of    Administration    of 1! 

Tariff  bills,  President  Taft's  vetoes  of 211 

Tariff   Board    20^ 

Tariff  planks  in  Republican  and  Democratic  platforms,  1856-1912 28' 

Tariffs  of  United  States,   history  of 38 

Textile  industries  of  United  States,  1850-1910 307 

Tin-plate    industry    in    United    States 199 

Trade  balances  under  protection  and  low  tariffs,  1790-1912 333 

Treasury  Department :   work  of  under  President  Taft's  Administration  357 

Trusts,   control  of 9£ 

Trusts  in  free-trade  England 4 

Truth  about  those  delegates,  Republican  National  Convention,  1912 


" 


V 

Vetoes  of  Democratic  tariff  bills  by  President  Taft 21: 

Vote  in  close  States  in  Presidential   elections,   1892-1908 34! 

W 

Wage  earners  affected  by  Democratic  tariff  bills,  Sixty-second  Congress.  .  3 
Wages   and  living  conditions,  United  States  and  United  Kingdom  com- 
pared       13 

Wages   and   prices    11 

War  Department :  work  of  under  President  Taft's  Administration 36[ 

Wheat    production    and   consumption    of   world 3C 

William    Howard    Taft    (See   Taft,    President   William   Howard.) 

Wilson,   Woodrow,   sketch  of  life  of 2 

Workmen's  compensation  and  employers'   liability,   Taft  on 11 


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